There’s a lot of talk that there’s a bubble forming in the price of Ethereum (ETH), and that the price of Ethereum is starting to show signs of a major breakdown. In this article, I list the signs that suggest the price of Ethereum is in for a dramatic collapse.
Bitcoin is the king of the cryptocurrency realm. At the time of writing, it is trading at a staggering $2980. The last time I wrote about Bitcoin it was at $1250. It’s movements over the past year have been astounding. It was worth $1250 in July of 2017, and has risen 600% since then. You can read about my thoughts on Bitcoin here .
In the past couple of weeks, the overall cryptocurrency market has been in a slump, with Bitcoin (BTC) breaking below $6,000 for the first time since December 2017. Ethereum (ETH) has fared worse than its older sibling, BTC, dropping as much as 20% in the span of a couple of days. As a result, a lot of people have started asking whether the decline in ETH is a sign of trouble ahead.. Read more about bitcoin vs ethereum chart and let us know what you think.The recent rise in the price of Ether (ETH) against its main rival, Bitcoin (BTC), seems likely to slow down, although analysts see the second-largest cryptocurrency as stronger among the other two. With the pullback, the ETH/BTC price rose 40.19% after hitting on the 23rd. May had reached its lowest point at 0.0553 BTC. This sharp increase reflects strong capital flow from the ETH spot market to the BTC spot market. This also prompted analysts at Delphi Digital, an independent market research firm, to point out Ethereum’s impressive strength in bitcoin markets. You wrote: If you look at the ETH/BTC chart from earlier this year in isolation, you probably wouldn’t guess that fear in the crypto-currency market is now at its highest level in the past year. However, a closer look at the ETH/BTC chart has revealed indications that bullish traders may be falling into a bullish trap.
ETH/BTC formed a pattern that started wide on the downside and narrowed as price rose. As a result, the margin was reduced. At the same time, volumes have decreased due to price increases and changes in contractor behaviour. ETH price is rising within a bearish reversal pattern on falling trading volume. Source: TradingView Classical chartists call this structure an ascending chamfer. They interpret it as a traditional bearish reversal pattern, mainly due to the loss of bullish momentum at each successive peak. Rising wedges mature when an asset reaches a level where two trend lines converge. However, a bearish confirmation will only come if price convincingly breaks through the wedge support level. But when this happens, the value is likely to fall by an amount equal to the maximum distance between the upper and lower trend lines of the wedge. Therefore, the ETH/BTC Rising Wedge indicator suggests a drop to 0.0648 BTC on a negative breakout attempt from the top of the pattern – the point where the trendlines converge. Moreover, the 0.0648 BTC level was used as support for the May 2021 session.
January 2018 fractal
Delphi Digital compared the ETH/BTC reaction to bitcoin’s cyclical highs in 2018 and 2021 to explain its bullish forecast for the pair. The company pointed out that ETH/BTC was a relatively weaker instrument during the 2017 price rally compared to 2021. The pair reached a mid-cycle high in June 2017 – even as bitcoin continued to rise, reaching $20,000 by the end of the year. By that time, ETH/BTC was down over 85%. But a huge correction in bitcoin prices in January 2018 shifted capital into the altcoin markets, leading to a short-lived upward correction in the pairs supporting BTC. Ether also benefited from the influx of money from the bitcoin markets, as it rose from 0.0231 BTC in December 2017 to 0.1237 BTC in January 2018, up 435.44%. ETH/BTC then began to correct downward over the course of the week as bitcoin and Ethereum suffered losses in dollar-denominated markets. As a result, the pair dipped from 0.1237 BTC, the high of the year at the time, to a low of 0.0246 BTC in December 2018. However, this does not apply to the ongoing ETH/BTC correction, Delphi Digital noted, writing: During the peak in early 2018, ETH/BTC suffered a lot and did not even recover as fast as this time.Comparison of ETH/BTC peaks in 2018 and 2021 according to Delphi Digital’s forecasts.
Correlation between Ethereum and Bitcoin
ETH/BTC’s vulnerability to a negative breakout depends on how bitcoin performs in dollar-denominated markets. BTC/USD fell 53.77% from a record high around $65,000 and then began a consolidation. Meanwhile, ETH/USD also corrected along with BTC/USD, falling 60.59% from an all-time high of $4,384. This shows a strong linear correlation between the two digital assets. Nick Spanos, founder of the Bitcoin Center NYC, told Cointelegraph that Ether needs to break the correlation with Bitcoin in the dollar markets in order for an independent ETH/BTC trend to emerge. Until then, strong downward moves in ETH/USD and BTC/USD will also mean a downward trend in ETH/BTC. He added: Ethereum has good fundamentals and upgrades are underway, but potential future growth is somewhat dependent on Bitcoin’s performance. Ethereum investors are predicting a reversal of this trend. However, the current trend does not suggest that this will happen in the short or medium term. Yuri Mazur, head of data analysis at cryptocurrency exchange CEX.IO, added that the ongoing anti-inflationary narrative could allow bitcoin to resume its upward trend. Therefore, the rest of the cryptocurrency market, including Ethereum, is expected to follow suit. He told CoinTelegraph: ETH/BTC should benefit from a rise in cryptocurrencies, especially if Ethereum undergoes a hard fork update in London in late July.So, what’s going on at the moment? Ethereum’s price chart for the last few months shows a very strange pattern. In the last few months, the price of Ethereum has been consolidating sideways. This is strange because Ethereum is supposed to be the top of the market cycle in which cryptocurrency prices increase. What we’re seeing, instead, is a relatively flat market, with prices hovering around the same level for months on end.. Read more about ethereum price correction and let us know what you think.
Frequently Asked Questions
Is ETH faster than BTC?
Ethereum (ETH) is a blockchain network, a form of decentralized application (DApp). It has been for about a year now and is growing in popularity as a blockchain-based platform for building decentralized applications, or DApps. In this post, I will explain ETH price action, and compare it to BTC and USD. I will also attempt to predict the future price action of ETH. One of crypto’s most popular coins, Ethereum, saw a massive spike in value after its May 2018 update on the Ethereum network. Many hope that the update will usher in the next era of blockchain technology. Many also believe that the price spike is a bubble, and that the new update will fail to live up to its tremendous hype. As the Ethereum community works to figure out the next step for its network, it is worth noting that the event may not be as simple as it might seem. At this stage, there is no doubt that Ethereum is one of the most powerful and popular blockchains. What remains unclear is how it will fare in the long term, as it faces the challenge of competing with altcoins like Bitcoin, which charges
Does ethereum price depend on Bitcoin?
We all know that Bitcoin (BTC) and Ethereum (ETH) have a close relationship when it comes to price moves. But what if that relationship breaks down? The latest crypto-mania has caused a run in the prices of many alternative cryptocurrencies, with the Ethereum price surging to over 30 USD per ETH. This is a great hype for the Ethereum community, as it means that the blockchains potential has now been recognized. However, the price of Bitcoin also rose dramatically, showing that something else is going on. For a brief time, Bitcoin prices skyrocketed to over 9000 USD per BTC. Will Ethereum follow suit?
Is ethereum more important than Bitcoin?
There is a lot of chatter about “Ethereum vs Bitcoin” on the social media today. With the release of cryptocurrency, bitcoin, the two most widely traded cryptocurrencies have clearly separated from each other and are now trying to establish their own identity. However, with the increasing interest in ethereum, the two cryptocurrencies are getting closer and closer. The trading volume of ethereum now exceeds that of bitcoin. However, is ethereum more important than bitcoin? The price of Ethereum has recently been in a bearish trend. However, something interesting should be noted. The price of Bitcoin has been more than 3 times higher than Ethereum. This is an indication that the market sentiment is getting bearish on Ethereum.
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