What Awaits Ethereum (ETH) Price in the Near Term?
Ethereum has seen intense selling pressure in the past few days. The cryptocurrency is currently stabilizing following this move, but sellers seem to be increasing the selling pressure. One analyst states that ETH could drop as low as $ 295 in the near term.
This downward move may occur as a result of selling pressure that has shaken the price action over the past few days. With Ethereum falling below $ 340 yesterday, it fell significantly from its recent highs. However, the upward momentum that it created after these decreases is starting to stop, which may be a sign that more downsides are near in the near term.
Noting that the enormous buying pressure at this level made it an obvious medium-term price target, one analyst said; it is heading for a decline towards $ 295 especially in the near term.
Assuming that it falls to these lows, with this level strongly defended; The cryptocurrency could start a journey to significantly higher levels in the near term.
Analysts believe this drop could signal the beginning of a further downturn that could significantly shake ETH and other major digital assets in the medium term.
If Bitcoin loses its support at $ 10,000, it will likely create a wind that will drop Ethereum significantly in the coming days or weeks.
Wild Selling Pressure
Ethereum is poised to move lower after the leading cryptocurrency has 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 of the leading ETH futures markets is currently somewhat negative, according to ByBt, a crypto derivatives follower.
What Can Be Experienced in ETH?
As of the writing of the news, Ethereum is currently trading at $ 320.
In-chain measurements showed that a large number of Ethereum has been invested in exchanges in the past 24 hours, increasing the 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.
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.