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Ethereum Bears Are Back, Why ETH Could Dive Below $1K

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Ethereum

Ethereum extended losses and traded below $1,100 against the US Dollar. ETH could accelerate lower if there is a close below $1,000.

  • Ethereum started a fresh decline below the $1,120 and $1,100 levels.
  • The price is now trading below $1,100 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $1,115 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to decline if there is a close below the $1,000 level.

Ethereum Price Extends Losses

Ethereum remained in a bearish zone below the $1,150 support zone. ETH extended decline below the $1,120 and $1,100 levels. It opened the doors for more losses and the price even moved below $1,080.

The price is now trading below $1,100 and the 100 hourly simple moving average. It traded as low as $1,033 and the price is now consolidating losses. An immediate resistance on the upside is near the $1,060 level. The first major resistance is near the $1,090 zone.

The 23.6% Fib retracement level of the downward move from the $1,275 swing high to $1,033 low is also near the $1,090 level. Besides, there is a major bearish trend line forming with resistance near $1,115 on the hourly chart of ETH/USD. The trend line is near the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

The next key barrier is near the $1,150 level or the 50% Fib retracement level of the downward move from the $1,275 swing high to $1,033 low, above which the price start a decent increase. In the stated case, the price could rise towards the $1,200 resistance zone.

More Losses in ETH?

If ethereum fails to rise above the $1,090 resistance, it could continue to move down. An initial support on the downside is near the $1,035 zone. The next major support is near the $1,000 zone.

A downside break below the $1,000 support may perhaps spark a sharp decline. In the stated case, the price could drop toward the $965 level. Any more losses below the $965 level may perhaps call for a move towards the $880 level in the coming sessions.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now near the 40 level.

Major Support Level – $1,000

Major Resistance Level – $1,090

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Crypto Traders Accumulate Highest Buying Power In Two Years

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Crypto Bitcoin Btc Btcusdt

The crypto market has been trading in the green over today’s session as it sees some relief from macro-economic factors. Today, the U.S. published July’s Consumer Price Index (CPI) print which hinted at a slowdown in inflation and allow Bitcoin, Ethereum, and others to experience some relief.

CPI has been a key metric over the past months as the U.S. Federal Reserve (Fed) attempts to mitigate it by hiking interest rates and reducing its balance sheet. Thus, global markets have seen less liquidity which has negatively impacted risk-on assets, such as equities and cryptocurrencies.

At the time of writing, Bitcoin (BTC) trades at $23,900 with a 4% profit in the last 24 hours while Ethereum (ETH) trades at $1,800 with a 9% profit over the same period. The second crypto continues to outperform BTC as investors seem to be migrating into the altcoin sector.

BTC’s price moving sideways on the 4-hour chart. Source: BTCUSDT Tradingview

July’s CPI print see a decline on the back of commodities trending downwards, particularly the energy sector saw falling prices. However, Rick Rieder, CIO at investment firm BlackRock, believes inflation it’s “still running at a worryingly high rate”.

This might continue to operate as a headwind for digital assets and risk-on assets over the long run but might allowed the Fed to be less aggressive with their monetary policy. Rieder said the following on the potential long-term bullish effect of less inflation:

Over time, we think the slowdown in economic growth, the continuation of the Federal Reserve’s assertive Hiking Cycle and the possibility of resolution with several persistent supply chain issues should influence broad inflation lower.

Rieder claims inflation might continue to trend lower or moderate in the coming months. This might remove uncertainty across the crypto market and provide these assets with enough support to reclaim previous highs.

Bitcoin And Crypto Could Extend Bullish Momentum?

The biggest headwinds for crypto will be the Fed’s Federal Open Market Committee (FOMC), BlackRock’s CIO said. At that time, the financial institution might announce another “substantial” interest rate hike, but there’s “still a lot more data to come between now and the meeting”.

In this environment, data from crypto research firm Santiment records a spike in the supply of Tether (USDT) on exchange platforms. This hints at the potential buying pressure from market participants waiting for more clarity around macro-economic factors.

The recent CPI print might provide that clarity, at the time of writing, USDT’s supply on exchanges stands at 42% for the first time since April 2022. At that time, the market was about to enter a massive bull run into new all-time highs.

Crypto Bitcoin Btc Btcusdt
Source: Santiment via Twitter

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Ripple Labs Interested in Buying Assets of Celsius Network

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Celsius Makes Strong Comeback, Total Debt Stands At Only $59 Million