Ethereum and the crypto market turned red as the U.S. Federal Reserve (Fed) Chairman Jerome Powell hinted at “more pain” for global markets in the coming months. The two largest cryptocurrencies by market cap returned to critical support zones and might be on the brink of further losses. Related Reading: Majority Of Ethereum Investors Maintain Profitability Despite Decline Below $1,700 At the time of writing, Ethereum (ETH) trades at $1,580 with a 7% and 15% loss over the past 24 hours and 7 days, respectively. The second cryptocurrency was outperforming Bitcoin and leading the altcoin sector in a relief rally. Now, Ethereum’s price performance might be forecasting a spike in downside pressure for the altcoins sector as investors flock back into Bitcoin. On this downside move, the Bitcoin Dominance chart might have found support on the daily chart after trending to the downside since late July 2022. At that time, Ethereum core developers confirmed good progress on “The Merge”, the event that will complete ETH migration to a Proof-of-Stake (PoS) consensus. Over the past two months, market participants have been preparing for this event with a seemingly bullish bias. However, analyst Justin Bennett has made emphasis on the possibility of “The Merge” operating as a “buy the rumor, sell the news event”. This could push Ethereum into lower support levels. As seen in the chart below, Ethereum might be forming a “Head and Shoulders” ...
