Ethereum (ETH) Could Decline Up To $ 300
Can See $ 300
Ethereum is poised to move lower after the leading cryptocurrency experienced a strong bounce from its recent lows. Popular analyst SmartContracter comments on ETH:
“There is a wild sale across the market. In my opinion, ETH is currently the clearest of all time frames. I believe the 5 waves up from the lows are now complete, confirmed by a 5 wave drop from the peaks at 4h, from here I will look for the upward moving shorts and act as a counter trend. ”
savage sell off market wide, i think $eth is now the clearest on all timeframes.
i believe 5 wave up from the lows is now complete, confimred with a 5 wave decline from the highs on 4h, where anoy move up from here i will be looking to short and treating as counter trend. pic.twitter.com/yjXqbSqN1R
— Bluntz (@SmartContracter) September 4, 2020
According to the chart prepared by the analyst, there may be a serious decrease in ETH towards $ 300.
It is the ongoing state of ETH futures, confirming the prospects for a short-term bounce. The funding rate for the leading ETH futures markets is currently somewhat negative, according to ByBt, a crypto derivatives follower.
What Can Be Experienced in ETH?
ETH / USD is currently trading at $ 386 after a significant drop towards $ 370, according to analyst Lorenzo Stroe. The bulls managed to hold onto a crucial support level around $ 370. Ethereum has created a notable support area between $ 362 and $ 370. Ethereum was trading at $ 488.95 just before the crash. A 24% price drop drove Ethereum below $ 370 just above a critical support area.
In-chain measurements showed that a large number of Ethereum has been invested in exchanges in the past 24 hours, increasing selling pressure. According to Chainalysis’s measurements, Ethereum’s flow from crypto exchanges to fiat exchanges on August 31 showed that investors were receiving Ethereum in cash in exchange for fiat.
Things don’t look that bad here, as the uptrend technically doesn’t disappear and $ 362-370 is defended. Bulls are currently struggling to climb above the 26-EMA to $ 400, which is an important psychological level. Both EMAs are still bullish and if buyers manage to hold $ 370, there isn’t much resistance to the bullish.
Bitcoin (BTC) Will Be Decisive
Bitcoin and Ethereum can be in an area that will take the negative side. Crypto asset market analyst Cole Garner recently shared the chart shown below. It shows that Bitfinex investors are starting to build a buy wall around the $ 8,800 zone on Bitcoin’s chart.
Nice to see you again #BitfinexWhale
Smart money has their bids sitting at $8800
I expect the bottom will likely be around there pic.twitter.com/DPBHUKrCFr
— Cole Garner (@ColeGarnerXBT) September 4, 2020
This is important as Bitfinex’s order book has managed to predict BTC’s price directionality in recent months. First, there were strong offers on Bitfinex supporting the price of Bitcoin before it rose from $ 9k to $ 12k in late July and early August .
Bitcoin and Ethereum may not go that far. Many analysts are watching the $ 9,600- $ 9,700 price zone as a place for Bitcoin’s bounce, as the region has said support instead of resistance.