Ethereum (ETH) Awaits Significant Declines, According To This Model Of The Analyst

Ethereum (ETH) Awaits Significant Declines, According To This Model Of The Analyst

Ethereum has been trading closely with Bitcoin in recent weeks, but this correlation is; While the cryptocurrency surged to its highs of $ 410, BTC showed some signs of decline when it fell below $ 12,000.To be sure, this rally was short-lived because immediately after the rally, a massive influx of selling pressure followed, causing the lead altcoin to drop below $ 390.The current upward momentum in ETH continues to decline as the asset shows some clear signs of weakness.

Ethereum Shows Signs Of Weakness

Ethereum price marks a notable decline from daily highs just below $ 410 observed on Monday.Yesterday’s decline was brutal for Ethereum as the price of the cryptocurrency dropped to $ 380 before finding a boost to its current price.

If this downward momentum pushes the coin below this support level; the asset may be ready to see significant losses in the near term.However, the bears may not have enough strength to reduce the buying pressure here, as the previous attempt to break this level seen last week was unsuccessful.Where the Ethereum trends in the coming hours will likely depend on Bitcoin, as the cryptocurrency currently stands just above its core support of $ 11,400.

This Bearish Pattern Could Cause ETH to Lose Its Gains

An analyst has been watching Ethereum closely for the past few weeks with its head and shoulder trading pattern.While the analyst sets a low target of $ 320, this pattern will be confirmed if the coin drops below $ 380.As this bearish trend is on the verge of being confirmed, the bulls should rise and slow Ethereum’s decline in the next few hours.

What are the Situations in Bitcoin?

With the withdrawal of another $ 13 billion from the crypto money market, many cryptocurrencies turned red. This investment outflow may have caused Bitcoin (BTC) to lose $ 300 in the last 4 hours and approximately $ 1,200 on a weekly basis.

While there is no obvious catalyst for the current downturn, Federal Reserve (FED) President Jerome Powell stated on Thursday that some measures will be taken to keep the economy afloat.With increasing pessimism about the economic recovery, many institutional investors are likely to withdraw their investments from the markets until a clearer financial market picture emerges.

Not only has the cryptocurrency market shaken today, but exchanges such as Dow Jones, S&P 500, and FTSE 100 have also experienced a crash in the past 24 hours.

Price Levels to Watch in the Short Term in Bitcoin

Looking at the 4-hour chart of BTC / USD, we can see that the leading coin is returning to its main support area. This $ 11,400 zone has been critical short-term support for Bitcoin on two separate occasions over the past two weeks and now helps slow the current downtrend once again. If the bulls can return to this level again before the close, we will be able to see this support push the leading coin up.

However, if this significant level fails, the $ 11,120 level, considered the end point of the August 11 collapse, will have to be held by the bulls. Below this level, there are around 11,000 second main support zones that have not been visited since July 31st. Going down to this level will create a new 25-day low for BTC prices.

Below $ 11,000 is the level of $ 10,500, which was broken last month and was the previous record of 2020.

Total market capital: $ 369 billion
Bitcoin market capital: $ 210 billion
Bitcoin dominance: 57%

Bitcoin (BTC) is trading at $ 11,301 as of writing. Ethereum is also traded at $ 380 as of the writing of the news. Where the correlation between the two leading entities will evolve in the coming days is expected with curiosity.

Samuel Hegi

Samuel Hegi , who first became acquainted with blockchain technology in 2014, is highly critical of blockchain technology. Samuel Hegi, a journalism graduate from the University of Brighton he is the editor-in-chief of the news portal. Blockchain is love.

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