Ethereum Marks Three Consecutive Red Weekly Closes, Will Uptober Change Its Trajectory?
October 04 2022 - 1:00PM
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Ethereum has been one of the cryptocurrencies that have received
major support from the crypto community regardless of how the price
performs in the market. Since the Ethereum Merge was completed,
though, the digital asset has not performed as well as expected.
ETH’s price has continuously bled out, which has led to its price
relegating to the low $1,000s. As the new month begins,
speculations abound on whether the cryptocurrency has what it takes
to recover. Three Red Weekly Closes Along with the rest of the
crypto market, Ethereum’s price has suffered bitterly at the hands
of the bulls. Once again, the curse of September reared its ugly
head, and digital assets across the space saw more red than green
during this time period. Ethereum itself had closed out the month
with three consecutive red weekly closes, which has greatly
impacted its performance in the market. Related Reading: LUNC Price
Gains 50% Despite Kwon’s Troubles, What’s Driving It? Over the last
few weeks, the resistance to the digital asset has been mounting,
and the bears have made a solid stand just above the $1,400 level.
This is evidenced by ETH’s inability to beat this point, even with
some rise in momentum. ETH sees three consecutive red weekly closes
| Source: ETHUSD on TradingView.com Interestingly, Ethereum’s chart
looks eerily similar to the same trend that was recorded back in
September of 2021. This had been in the middle of the bull market
right before ETH had hit its all-time high above $4,900. The
digital asset had recorded three consecutive red closes, followed
by a green close. What followed would be two months of weekly green
closes that saw the cryptocurrency surge by more than 48%. If this
trend holds and Ethereum is able to successfully break through the
$1,400 resistance point this week, then ETH’s price could rally to
$1,800 over the next two months before eventually losing steam. Can
Ethereum Hold Up? The weakness of ETH following the Merge has done
a number on not only the digital asset but on investor sentiment.
The majority of investors still opt to hold their coins for the
long term. However, the sell-offs continue to wax stronger at this
time. Related Reading: Exchanges Close Q3 With Massive Bitcoin
Outflows, Why A Rally Is On The Horizon Mainly, all eyes are on the
Ethereum staking contract, where more and more of the supply are
being sent each day. The contract currently sits at more than 14.1
million ETH are already staked, accounting for about 12% of the
total supply. And since there is presently no way to withdraw these
ETH, they are temporarily taken out of circulation, causing a
significant drop in supply. Nevertheless, the majority of ETH
investors are still in profit despite the current low prices. This
53% of investors who have mostly held their coins for longer than a
year remains in the green. However, profit-taking continues with
exchange inflows reaching $4.49 billion for the last 7 days
compared to outflows of $4.44 billion. Featured image from El
Cronista, chart from TradingView.com Follow Best Owie on Twitter
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