Home CryptocurrencyBitcoin Here is why merchants say Ethereum Price could fall to $ 3.5K before a rebound

Here is why merchants say Ethereum Price could fall to $ 3.5K before a rebound

by SuperiorInvest

Key control:

  • Ether bears are becoming stronger since the price is agreed.

  • The decrease in punctual volume indicates a weak demand and a growing vulnerability to ETH prices.

  • The ETH price could fall to $ 3,500 if key support levels are lost.

Ethher (ETH) remains stuck in the range of $ 4,200- $ 4,500 for two weeks, in the midst of decreasing and institutional demand. This has made some merchants bassists, considering that the price of ETH fell to $ 3,500 before any possible recovery.

ETH/USD four -hour table. Source: Cointelegraph/Commercial view

The feeling of the market becomes negative

The bite in the price of Ether, together with the recent Bitcoin fall below $ 100,000, saw a change in the feeling of the market as the “sales calls” intensified, according to Santiment.

“The merchants have changed their songs, swinging more and more negatively with the expectations that Bitcoin falls below $ 100K, Ethereum again below $ 3.5K,” said the market intelligence firm in an XX on Tuesday.

Related: Ethereum validator output tail to increase while the oven moves the chips

A accompanying table shows an increase in keywords as “sale” and “bears” since the end of August, when Ether reached its maximum of historical $ 4,950.

However, markets often move in the face of the expectations of the crowd, which could actually be “to point out an ideal purchase,” writes Santiment.

Cryptographic social volume: keywords Versus bassists. Source: Santiment

Ethereum merchants go back

Ether’s punctual demand is still moderate for two weeks, and the ETH negotiation volume fell to $ 2.6 billion on September 8, $ 18.5 billion on August 22, a decrease of 85%, as shown in Glassnode data.

The decrease in the spot volume indicates the participation of investors, which reflects a weaker conviction among merchants.

ETH: Punctual volume. Source: Glassnode

While the cumulative volume Spot Delta (CVD), the net difference between buying and selling commercial volumes for ETH has improved slightly, as the sales pressure decreased. However, it is still well below the levels seen at the end of August.

ETH: Spot volume delta. Source: Glassnode

Low and delta volume of volume of negative spots indicate a demand for weak ETH, increasing prices vulnerability. However, the Bulls could recover their balance if the CVD stabilizes.

As Cointegraph reported, institutional investors have taken a step back, with Spot Ethereum ETF that records more than $ 1.04 billion in net exits in six consecutive negotiation days, which adds to the pressure on the side of the sale.

How low can the ETH price go?

ETH Price is currently testing the lowest line of trend of a symmetrical triangle at $ 4,280 in the daily time, as shown by Co -Intelegraph Markets Pro and TrainingView data.

A daily candlestick near the triangle could attract more bears that will seek to reduce the price to $ 3,600, or 16% down from the current level.

Daily eth/USF table. Source: Cointelegraph/Commercial view

The founder of MN Capital, Michael Van de Poppe, says that Eth Price could fall towards the demand zone of $ 3,500- $ 3,800 before recovering.

“One leg down for $ eth, touching the green zone and only from there. That would be my ideal scenario.”

Daily eth/USD table. Source: Michael Van de Poppe

The companion analyst TED pillows saw large liquidity groups that sat between $ 3,600 and $ 4,000 and said that Ether could fall first to collect this liquidity, before a reversal.

“It seems that a lower liquidity could occur before reversal.”

As Cointelegraph reported, another potential area to observe a rebound is $ 3,745 if the $ 4,000 support is lost.

This article does not contain advice or investment recommendations. Each investment and trade movement implies risk, and readers must carry out their own investigation by making a decision.

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