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  • Ethereum’s price action has largely been in sync with that of Bitcoin and the entire crypto market
  • Bulls and bears have both attempted to control its mid-term trend, but this has just resulted in a prolonged bout of sideways trading
  • One analyst believes that the market might see some slightly further selling pressure in the near-term, which could slow its ascent and cause it to reel lower
  • He is specifically setting his sights on a move to $340, noting that this is a strong support level that could slow its descent
  • That being said, he is also pointing to a few external factors that all indicate downside is imminent for the entire crypto market

Ethereum’s price action has been much like Bitcoin’s as of late, offering few insights into its short-term strength as both bulls and bears struggle.

Today, ETH has incurred some slight upwards momentum that certainly bodes well for its short-term outlook.

That being said, it still is trading well below its crucial resistance region between $380 and $400. Until this area is flipped into support, bears may have an edge over bulls.

One trader is expecting further downside for Ethereum before it has a chance to reverse its downtrend.

He is specifically targeting a move to $340 in the near-term.

Ethereum Struggles to Incur Strong Momentum as It Remains Below $380 

At the time of writing, Ethereum is trading up 2% at its current price of $367. This marks a notable upswing from daily lows of $350 that were set around this time yesterday.

It is important to note that the recent push higher has come about in tandem by one seen by Bitcoin, as the benchmark crypto is now moving towards $11,000.

For Ethereum, bears may still remain somewhat in control until it is able to break above the $380 to $400 region.

Analyst: ETH to Sink Towards $340 in the Near-Term

One popular trader who has been growing increasingly bearish on Ethereum noted that he is now watching for a swift move down to $340.

“ETH: Send it to 340~ This is my last stand at being bearish. Break and hold above 377~ and 400~ is on the table then I’ll have to evaluate from there,” he said.


Image Courtesy of Chase_NL. Chart via TradingView.

He added in a later tweet that multiple factors suggest that BTC and the rest of the crypto market might also see a downturn that could impact Ethereum, including the US Dollar Index bouncing at support, and the lack of any real progress on another stimulus package.

Featured image from Unsplash.
Charts from TradingView.

Bitcoinist , 2020-10-01 22:10:16 ,

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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.

Featured Image from Shutterstock

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

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