Ethereum (ETH) Price Prediction: Double-Top Pattern Hints at a 50% Correction
- 王林Original
- 2024-07-17 05:01:29835browse
Ethereum price has been under pressure in the past few weeks even as the hopes of a spot Ethereum ETF approval rose. The ETH token has remained in a bear market as it crashed by over 24% from its highest level this year.
The price of Ether (ETH) has crashed by over 24% from its highest level this year as the hopes of a spot Ethereum ETF approval rose. While some analysts believe that this approval will lead to more inflows into Ether, others are warning that investing in the cryptocurrency directly is a better approach. This is because ETFs come with a fee and investors will have to forego Ether’s staking rewards.
Another risk is that Ether has formed a double-top chart pattern on the daily chart. This pattern is usually used to identify potential reversals. If the double-top pattern works well, the ETH price could crash to $1,540, which is about 50% below the current level.
Finally, Ether has also formed a bearish divergence pattern, which is another red flag. This pattern is usually formed when oscillators like the Relative Strength Index (RSI) and the MACD form a series of lower highs and lower lows. The MACD indicator has continued falling and moved below the neutral point at zero.
At the same time, the ETH price has formed a small rising wedge chart pattern that is shown in green. It has also dropped below the 200-day moving average.
On the other hand, the most likely scenario is where the coin makes a big breakdown in the coming weeks. This is because Bitcoin, which is the leading cryptocurrency, is not doing well as it has struggled to move above the resistance point at $60,000.
Data shows that Bitcoin is suffering from several factors. First, there are signs that miners are capitulating and selling some of their Bitcoins. In most cases, this miner capitulation leads to more downside by increasing the number of coins in exchanges.
Second, the German government and Mt.Gox wallets have continued dumping their tokens in the past few weeks. All this has sent shockwaves in the industry since Bitcoin is a highly illiquid asset. As such, many people are afraid of buying when all this supply is increasing.
Therefore, analysts believe that Bitcoin could remain under pressure in the near term. If this happens, it means that Ethereum and other cryptocurrencies could do worse, since historically, there is a close correlation.
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