As a seasoned researcher with a knack for deciphering the complexities of the crypto market, I find myself intrigued by Ethereum’s current predicament. The stable performance on Thursday is reminiscent of a cat playing with a yarn, toying with our expectations before making its move.
As an analyst, I observed that the price of Ethereum held steady during yesterday’s trading sessions, reflecting a general stabilization among cryptocurrencies following the sell-off triggered by the post-CPI release. However, while a positive sentiment prevails, several factors such as the possibility of a death cross could potentially disrupt the upward trend in Q3.
Ethereum Price Struggles Uphill
The potential exists for Ethereum’s price to drop towards $2,000 or lower due to the decrease in derivatives volume and open interest as noted on Coinglass. This could indicate a consolidation period after an extended spell of increased volatility, following the decline to $2,111 last Monday. In simpler terms, the price might drop to around $2,000 because of less trading activity in derivatives and a change in investor sentiment following the recent fall from $2,111 last week.
As a crypto investor, I’ve noticed a significant decrease in options volume for Ethereum, which could indicate less speculative trading and potentially lower volatility ahead. This might mean that Ethereum’s short-term price movements could be more stable.
Ethereum is positioned strategically between two crucial thresholds. It finds support at approximately $2,060, which coincides with the 200-day Exponential Moving Average (EMA), and faces resistance around $2,817, a level reinforced by both the 50-day EMA and the 50% Fibonacci retracement ratio.
In simpler terms, if the Ethereum (ETH) price moves outside of its current range, it could indicate the direction of future trends. Given that a ‘death cross’ is expected, we might anticipate a downturn that could take ETH down to around $1,500.
Keep in mind that a death cross forms when a longer-term exponential moving average (EMA) falls below a shorter-term EMA. In this case, the 20-day EMA is approaching the 50-day EMA in the weekly chart, which supports this bearish pattern.
As an analyst, I’ve observed that the last death cross on Ethereum, which occurred in May 2022, was followed by a substantial drop in price, amounting to approximately 68%. This decline took the value from $2,885 down to $887, highlighting the potential impact of this pattern.
The decrease in the Relative Strength Index (RSI) and its current neutral state at 42 lends support to the bearish perspective. This suggests that the price of Ethereum is not extremely undervalued yet, indicating that sellers may continue their actions before Ethereum, the second-largest cryptocurrency, potentially changes direction and experiences a significant increase above $4,000.
As a crypto investor, I’ve noticed that Ethereum’s price has been confined within a descending channel since it peaked at $4,100 in March 2024. However, if Ethereum manages to bounce back from the crucial support level of $2,500, it could signal a bull flag breakout, potentially pushing ETH towards its All-Time High later this year. Keeping an eye on key levels at $3,000, $3,500, and $4,000 can help us gauge the likelihood of a more robust upward trend.
It seems that the attitude towards the market has become more positive following three consecutive days of daily net inflows into Ethereum ETFs since their launch, as reported by SoSoValue. On Wednesday alone, these nine ETFs collectively brought in $10.77 million, thereby reducing the overall cumulative total net outflow to approximately $365.89 million.
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2024-08-15 21:34