Ethereum Steers Into Support, Time For More Slump Or Return to Previous Highs?
September 24 2021 - 9:39AM
NEWSBTC
Ethereum follows the general sentiment in the market and trends
downwards in the daily and weekly charts. After news about a
confirmed FUD on China banning crypto-related operations, a portion
of the market reacted negatively and created selling pressure. This
sent Bitcoin and Ethereum back to their critical support zones. At
the time of writing, ETH trades at $2,842 with an 8.2% and 20.4%
loss in the daily and weekly charts, respectively. Ethereum
technical indicators turned red as the price retraced south of the
$3,000 territory with momentum in favor of the bears. However, the
Relative Strength Index (RSI) remains neutral at a 39.51 value.
Related Reading | TA: Ethereum Lacking Bullish Momentum, Why
ETH Holders Are Safe This could suggest a reversal in the current
trend if combined with the fact that the FUD coming from China was
already price-in by another portion of the market. Trader Rekt
Capital commented the following on the price action and those
affected by “FUD from China”: BTC investors who have been in the
market for a while have heard many different iterations of FUD from
China. But newer investors, unarmed with this experience, are the
ones who are affected most. Their panic selling is what is fuelling
this recent downside. What Could Trigger A Rebound On Ethereum?
Ethereum’s recent low stands at $2,652, the price is reached at the
beginning of the weak on the back on the potential default of
Chinese real state company Evergrande. Thus, why ETH’s price must
hold that level in case of further downside. For the bulls to have
a fresh shot at reclaiming the $3,000 area, Ethereum must close the
daily above $2,900. The Exponential Moving Average (EMA – 10) could
be the next objective from there standing at $3,136. In the short
term, strength in Bitcoin or Ethereum could push the market back to
the green. The first cryptocurrency by market cap has bullish
fundamentals that could benefit the entire crypto market. Related
Reading | As Ethereum Price Suffers, JPMorgan Strategist Hits
The Asset With A 55% Lower Valuation As pointed out by Glassnode
founders Jan Happel and Jann Allemann, the Relative Transfer Volume
Breakdown, a metric used to measure transaction volume in the
market, suggest that institutions are still betting big on Bitcoin
(BTC). Alleman and Happel said: Bitcoin transaction volumes
continue to reflect big money moving in the space. Institutional
sized capital ($1M+ transaction sizes) represent around 82% of
settled volume over the past week. Note the growth in institutional
size capital really kicked off since October 2020. In addition, as
pseudonym trader LilMoonLambo said, banking giant JP Morgan seems
more bullish on Ethereum than Bitcoin. The bank has been dabbing
into crypto for a while and their estimates for ETH and BTC mini
futures are optimistic for the bulls.
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