The price of Ethereum’s asset Ether went down on the 20th of September which took place amid a broad sell-off in the market. This has led to worries about a potential housing crisis that was brewing in China. The USD exchange rate went down by around 12.52% to $2,911 on the exchange of Coinbase where it hit its lowest levels since August began.
Throughout the crypto market, most of the top token currencies like Bitcoin, Binance Coin, Solana, Cardano, and several others have gone down in tandem. This drop definitely imitated the mood that had permeated the broader market with the United States equities plunging after a day of red in the European indexes.
Ethereum’s Bearish pattern triggered
Evergrande was at the core of the sell-off on Monday, which saw a liquidity crisis. The most indebted property developer in the world currently faces massive obligations of around $300 billion to creditors. This does include a critical interest payment deadline on the offshore bonds which would be arriving on the 23rd of September.
Now, while Ethereum doesn’t generally trade in sync with global markets, the correlation it has with Bitcoin over 30-days sits at 0.85. As a result, the altcoin which comes up directly faces an indirect consequence of the looming housing crisis in China.
The latest bout of the sale in the market of Ethereum has also led to a classic bearish pattern with about 75% accuracy when it looks towards its downside targets. This has been christened as a double top, where the pattern starts developing after the price comes back strongly, then pulls back, and thereafter rises again towards the peak that it had previously attained.
Ethereum seems to be meeting at a middle ground when it is painting a double top pattern. According to data from Cointelegraph, the cryptocurrency topped near a sum of $4,385 on the 12th of May, after which it fell to support of $1,984.