Connect with us

Cryptocurrency

Ethereum could see a 15% drop this week

Avatar

Published

on

Ethereum has had a good week, staying in the green of the crypto space for the past seven days and raising its price by 3.7%.

  • Ethereum is currently being detected in an inverted banner pattern
  • The bearish trend of the altcoin is very likely to resume
  • $1130 Might Be a New Sign of Support for Ethereum

sicosecond abbreviation The largest cryptocurrency by market cap is currently trading at $1,324 according to Coingfecko At the time of writing, the 24-hour trading volume was just over $5 billion.

But the widely recognized king of all cryptocurrencies and their investors should consider staying alert as analysts believe the asset is headed for a major price correction and downside momentum.

This development again contrasts with bullish expectations for cryptocurrencies after successfully undergoing a network upgrade last month.

Ethereum and its bearish price pattern

The inverted pennant pattern is where the price of Ethereum has been circulating over the past days, with the risk of the cryptocurrency entering an accelerated bearish momentum.

Source: TradingView

Under this pattern, a triangle formation appears as the price peaks before breaking the bottom support trend line and resuming its previous downtrend.

In the case of Ethereum, such a scenario could mean a break of the $1250 support level all the way to $1130. If that happens, the altcoin could be looking at a price drop of up to 14.3%.

Advertisement

However, there is a possibility that the opposite will happen and Ethereum will break the upper trend line of the support which will prevent the looming downward path of the enemy of Bitcoin.

Is it time to buy Ethereum?

Negative news keeps coming to Ethereum as a crypto-tracking tool Coincodex He concluded that it is not the right time to invest in cryptocurrency right now.

On October 16, the digital asset is expected to lose 7.12% of its value and is trading at $1,237.79. Technical indicators also look bad for the cryptocurrency, as the current sentiment is bearish and volatility remains high.

As for the Fear and Greed Index, Ethereum has a score of 22, which indicates the presence of intense fear. Also, out of the 30 days, the cryptocurrency only managed to get 12 green days, which is 40%.

Meanwhile, the upcoming year appears to be more promising for the altcoin king, as the year is expected to end at a trading price of $2,156.26 which is well above its current value.

Advertisement

On this account, experts say 2023 is a good year to buy the asset.

ETH total market cap at $160.36 | Featured image from Local News Today, Chart: TradingView.com

Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Cryptocurrency

Is the recovery just beginning or is it a bull trap?

Avatar

Published

on

Bitcoin price rose at a rapid pace and managed to surpass $16,500. BTC must settle above $17,000 to start a real recovery in the near term.

  • Bitcoin started an upward correction and climbed above the $16,500 resistance.
  • The price is trading above $16,400 and the 100 hourly simple moving average.
  • There was a break above a major downtrend line with resistance near $16,220 on the hourly chart of BTC/USD (data feed from Kraken).
  • The pair could continue to rise if it stabilizes above the $17,000 resistance area.

Bitcoin price is recovering

Bitcoin price formed a decent support base Above the $15,500 support area. BTC remained well bid and started an upward correction above the $16,000 resistance.

There was a clear move above the 50% Fibonacci retracement level of the main decline from the $16,795 swing low to the $15,470 low. Besides, there was a break above a major bearish trend line with resistance near $16,220 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading above $16,400 and Simple moving average per 100 hours. It is also well above the 76.4% Fibonacci retracement level of the main decline from the $16,795 swing low to $15,470 low.

On the upside, there is immediate resistance near the $16,800 level. The first major resistance is near the $17,000 area. A successful daily closing above the $17,000 resistance could start a real recovery wave. The next major resistance is near $17,500, above which the price could pick up the pace of a move towards the $18,000 region.

Advertisement

source: BTCUSD on TradingView.com

The intermediate resistance could be $17,650. It is close to the 1.618 Fibonacci extension level of the main decline from the $16,795 swing low to the $15,470 swing low.

New Drop in Bitcoin?

If bitcoin fails to settle above the $17,000 resistance area, it could start falling again. There is immediate support on the downside near the $16,500 level and a connecting uptrend line on the same chart.

The next major support is near the $16,250 region and the 100 hourly simple moving average, below which the price might gain bearish momentum. In the mentioned case, the price might decline towards the $15,500 support area.

Advertisement

Technical indicators:

Hourly MACD – The MACD is gaining pace now in the bullish zone.

Hourly RSI (Relative Strength Index) – The relative strength index for BTC/USD is now above the 50 level.

Major support levels – $16,500, followed by $16,250.

Major resistance levels – $16,800, $17,000 and $18,000.

Advertisement

Source link

Continue Reading

Cryptocurrency

Crypto has survived worse than FTX’s downfall: Chainalysis

Avatar

Published

on

Blockchain analysis firm Chainalysis compared the fall of Mt.Gox to FTX to determine how the FTX bankruptcy affected the ecosystem.

It concluded that FTX was a relatively smaller segment of the crypto industry than Mt Gox was at the time and that the industry should come back stronger than ever.

In November 23 Twitter threadEric Jardine, head of research at Chainalysis, began the comparison by first looking at the market share of the two companies, and found that Mt.Gox averaged 46% of all exchange flows in the year leading up to its 2014 crash, compared to the FTX average of 13%, which worked from 2019 to 2022.

Jardine notes that in 2014, when Mount Gox collapsed Central exchanges (CEXes) They are the only players in the game, while in late 2022 nearly half of all exchange streams have been hacked. Decentralized exchanges (DEXes) Like Uniswap and Curve.

Exchange flows of CEXes compared to DEXes between 2013 and 2022. Source: Chainalysis

Jardine states, however, that FTX has been slowly gaining market share while Mt.Gox has been experiencing a steady decline, and that business avenues are worth considering, adding:

“mountain. Gox has become one exchange among many during a period of growth for this category, taking a smaller share of a larger pie. FTX, on the other hand, has been taking a larger share of the shrinking pie, outpacing other exchanges even as raw tx volume has declined.”

Despite this, Jardine concluded, the Gox mount was “a major focus of the CEX category at a time when CEXs have dominated,” making it The bulk of the crypto ecosystem At the time of its collapse than it was FTX.

Jardine then moves on to examine the recovery of the crypto industry after the fall of Mt. Gox and found that while on-chain transaction volume had stagnated for a year or so, activity quickly picked up again.

Advertisement

Related: Sam Bankman-Fried says he is “deeply sorry” for the crash in a letter to the FTX team

In February 2014, Mt.BTC) in penetration.

Customers who have property deposited on the stock exchange have yet to receive their money back, however pronounced Mt. Gox Trustee On October 6, creditors have until January 10, 2023 to decide how to pay for They are said to have 150,000 BTC in their possession.

Cryptocurrency monthly service streams before and after the Gox mountain collapse. Source: Chainalysis

Jardine believes that although there are other factors such as The large public presence of Sam Bankman Fried“The comparison should give the industry optimism,” as when she cuts it short in market fundamentals, “There is no reason to believe that the industry cannot recover from this, stronger than ever.”