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Ethereum’s price action has been strikingly similar to Bitcoin’s over the past several days and weeks, with ETH’s correlation to BTC growing stronger as the volatility seen within the aggregated crypto market ramps up.

Analysts are noting that Ethereum may be positioned for further downside in the near-term, which could be driven by the lack of major support that exists directly below its current price levels.

Ethereum Breaks Below $150 as Analysts Eye Further Losses 

At the time of writing, Ethereum is trading down nearly 2% at its current price of $149.80, which marks a notable decline from its daily highs of just under $160 that were set yesterday.

It is important to note that ETH is currently sitting off of its recent lows of $147 that were set earlier this morning concurrently with BTC’s drop to $7,200, and its bulls have been able to defend this near-term support level so far.

Ethereum’s bulls have been able to put a significant amount of distance between its current prices and its recent lows of $130 that were set during the recent bout of capitulation seen across the aggregated crypto market that was led by Bitcoin’s drop to $6,500.

Nik Patel, a popular cryptocurrency analyst, recently spoke about Ethereum’s price action in a recent blog post, in which he notes that any further Bitcoin downside could be exaggerated in Ethereum’s USD trading pair.

“I fear the possible downside in Bitcoin will be exaggerated in ETH/USD (as occurred over the past week thanks to ETH/BTC bleeding with it),” he noted.

Will Dwindling Support Lead to Further Losses for ETH? 

Patel also notes in his market update blog post that Ethereum’s strong support that used to exist in the lower-$100 region may be dissolving, which could mean that any further downside will be perpetuated and possibly lead to a bout of capitulation.

“There does not appear to be much support left below $125, so it is vital that price is able to remain above here. Given how Bitcoin looks at the moment, however, it appears that ETH/USD is poised for more downside. The following support would be at $100, which is a long way away,” he noted.

Assuming that Bitcoin does lose the support that it has in the lower-$7,000 region, it is highly probable that Ethereum will see notable losses against BTC as its USD support regions falter.

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Cole Petersen , 2019-12-01 23:30:34

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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