Ethereum at Risk of a Larger Decline To $175: Here’s Why
Ethereum is down more than 10% and it broke the key $200 support against the US Dollar. Bitcoin’s decline is increasing pressure on ETH and it could decline further to $175.
- ETH price is gaining bearish momentum and it broke the key $200 support zone against the US Dollar.
- It is now trading below $192 and the 100 simple moving average (4-hours).
- There was a break below a key bullish trend line with support near $205 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue lower towards the next major support at $175 or $165.
This past week, Ethereum made a couple of attempts to gain bullish momentum above the $210 resistance area against the US Dollar, but it failed. ETH price formed a local top near the $215 level and started a strong decline.
The recent decline in bitcoin below the $9,000 support sparked heavy bearish moves in Ether. It broke the main $202 and $200 support levels to move into a bearish zone.
More importantly, there was a break below a key bullish trend line with support near $205 on the 4-hours chart of ETH/USD. The pair even settled below the $192 support and the 100 simple moving average (4-hours).
It is now trading below the 50% Fib retracement level of the upward move from the $146 swing low to $227 swing high. The current price action suggests that Ethereum might continue to move down below the $180 level.
The first key support is seen near the $175 level. It represents the previous breakout zone and coincides with the 61.8% Fib retracement level of the upward move from the $146 swing low to $227 swing high.
Any further losses may perhaps open the doors for a larger decline towards the $165 and $162 support levels in the near term.
If Ethereum starts an upside correction, an immediate resistance is near the $192 level. The first major resistance for buyers is seen near the $200 zone (the recent breakdown zone).
The 100 simple moving average (4-hours) is also near the $200 level to act as crucial hurdle. A successful close above the $200 level and the 100 SMA is needed to start a fresh uptrend.
4 hours MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
4 hours RSI – The RSI for ETH/USD is currently near the oversold zone at 26.
Major Support Level – $175
Major Resistance Level – $200
Author: Aayush Jindal
The importance of cryptocurrencies in an increasingly globalized world
مايو 16, 2018Uncategorized
Globalization creates multimedia technologies in the environment in which we live, which usually influence society. Cryptocurrencies are some of the novelties in globalization. But are you overlooking the importance of these cryptocurrencies to the earth today? There are still a number of people who are still not natural about the importance of cryptocurrencies to financial markets. However, several of them have already understood or understood the meaning. Nowadays, cryptocoins follow this one, real revolution in the purchase and distribution of products and / or services. With just a few clicks you can get items from distant countries at reduced costs. Still the most optimal of all, without as much administration as before. This is not an unexpected event, because the decentralization of cryptocurrencies has made it a very competitive differentiator for many companies, especially those who are active in the international market.
Do they want to know more about the meaning of cryptocurrencies in today's world? If so, read these quotes and see everyone about what cryptocoins are … and why they are so important these days. Cryptocurrencies: what will they be? Cryptocoins are digital coins that emerge from systems that continue to function independently of an intermediary entity outside of a government's command. Thus, the users carry out transactions with cryptocurrencies directly from their digital letters. In summary, the technology is present in all the functions associated with this control of those digital currencies, as well as in many platforms against which these financial transactions are being carried out. With that definition, you can imagine how important cryptocoins are to the globalized world in which we exist. The entire creation of distant movement of the following digital coins is a fragment of a global technological context.
The cryptocurrency statement: Why is it so huge at the moment? Some criteria make cryptocurrencies essential for the globalized earth in which everyone lives: its reduced cost of sending it abroad. The sequence in which the financial transformation with cryptocurrencies takes place enables remittances between countries with reduced interest rates. These are lower than the amounts usually calculated for transactions with which traditional currency. Not going beyond this, over the decades, more people have fallen into deciding on the same payment method, which makes financial operations that come with cryptocoins even more interesting.
Reduction of additional costs through currency conversion When using cryptocoins for purchases in international, physical and online shops, there is no need to incur additional costs in connection with currency conversion, which means this process for consumers who arrange to use digital coins in those financial transactions , is even more advantageous. Simple international business transactions Another factor that underlines the importance of cryptocurrency today is the ease it offers in international business. This happens because digital coins overcome any obstacle to the border much faster and easier than the traditional currency.
Facilitated Negotiations Investments that involve traditional currency depend on opening an account with a casino or other financial intermediary, right? But with cryptocoins, this pass is also easier, solely through online negotiations, where which negotiator sends his documents to a stock exchange, and in a few days, your bank account can always be just about anywhere to receive or send digital coins. Transactions carried out independently As already mentioned, transactions identify cryptocurrencies in a decentralized manner. These are not dependent on any bank or government. Transactions are massively more independent compared to trades in traditional currencies. As you can understand, there are several criteria that legitimize the importance of cryptocurrencies in the near today's globalized world. With its potential to make its investors more profitable, it is cheerful to see why more and more people are using digital coins in these financial transactions. Furthermore you want to exchange your cryptocurrency, you can do that with Trade by Trade!
The views of this news are informative, however, the views may also consider an author's opinions. This contemplation reflected a certain time beyond the market situation. This is not investment advice. Investing is at your own risk and you have to do it solely based on your own market analysis.
Cryptocurrency Market Update: Bloodbath as Bitcoin nosedives to $8,000, Ethereum $180 and Ripple $0.1780
The cryptocurrency market has been painted with one big bearish flag led by the major cryptocurrencies. Bitcoin price plunged from highs close to $10,000 on Saturday to intraday lows at $8,105. Ethereum could not hold above $200 due to its correlation with Bitcoin price. Ether touched lows at $180 but is now trading 11.21% lower at $186. The third-largest cryptocurrency has not been spared as it has spiraled to $0.1780 (intraday low) from Saturday levels above $0.22.
The selloff in the market is taking place less than two days the 2020 block reward halving. The drop was not expected many traders must have been caught off guard. For instance, data by analytics platform Skew shows that liquidations hit highs $226 million.
Other cryptocurrencies have also recorded double-digit losses include Bitcoin Cash (11.5%), NEO (10.66%), Litecoin (10.81%), IOTA (12.16%), EOS (10.91%) and Ethereum Classis (12.83%).
Intriguingly, Bitcoin price bounced off the 61.8% Fibonacci level to exchange hands at $8,611. This shows the willingness of the investors to buy in anticipation of a reversal above $9,000. Also holding the price in place is the 200-day SMA (0$8,053). However, the sharp slope of the RSI suggests that selling pressure is still high in spite of the bounce from the intraday lows. Therefore, other support areas to keep in mind include $8,000, .the 50-day SMA and $7,000.
Bitcoin price plunges 19% but key data suggests institutions are buying the dip
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Article by Cole Petersen with contributions from Joseph Young
The Bitcoin (BTC) price plunged by 19 percent from $10,000 to $8,100 across major exchanges. The sell-off was so intense that Coinbase went down temporarily amid the drop. But, key data shows institutional investors are patiently investing in the cryptocurrency market.
Grayscale, which operates the Grayscale Bitcoin Trust, saw its assets under management (AUM) surge to $3.7 billion in the last several days.
05/08/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $3.7 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/GM0YDAKf4g
— Grayscale (@GrayscaleInvest) May 8, 2020
The noticeable increase in CME open interest and the surging demand for the Grayscale Bitcoin Trust indicate institutions are not fazed by the recent trend of BTC.
The crypto industry has been captivated by macro investing legend Paul Tudor Jones offering an endorsement of Bitcoin as an investment tool in his latest market outlook – with many investors feeling vindicated by his comments.
His remarks may simply be the tip of the iceberg. Data suggests that he may just be one major investor who moved to gain exposure to the benchmark cryptocurrency throughout the past several months.
This comes as prominent figures within the crypto industry note that the public nature of Jones’ BTC endorsement is likely to spark a frenzy of institutionally driven BTC buying.
Bitcoin’s intense rally from its 2020 lows of $3,800 to recent highs of $10,100 has come about against a backdrop of immense global turbulence.
Its strength in the face of this uncertainty has bolstered its value as a so-called “hard asset” and has also drawn the eye of large investors keen on gaining exposure to high-performing assets.
Throughout the past two months, open interest on the CME for Bitcoin futures has been exploding, hitting fresh all-time highs of nearly $2 billion this past week, according to data from Skew.
This has come about as trading volumes remain stagnant on the exchange, signaling that investors are less interested in attempting to trade Bitcoin, but are rather moving to gain mid or long-term exposure to the benchmark digital asset.
It does appear that Jones’ comments regarding Bitcoin may mark the start of an institutional buying frenzy.
BitMEX CEO Arthur Hayes explained that he anticipates “beta fund managers” to begin cooking up “copypasta” – meaning that they will follow suit and also add the crypto to their portfolios.
“Paul Tudor Jones just removed career risk from investing in Bitcoin. Expect a lot of beta fund managers to begin cooking some copy pasta.”
Following a near 160 percent increase in price, a sharp Bitcoin pullback was widely expected. Historical data also showed that after a block reward halving, the price of BTC tends to drop.
With two days left until the activation of the halving, large traders seemingly front ran the market by initiating a steep sell-off, especially on BitMEX and Binance Futures.
Bitcoin, currently ranked #1 by market cap, is down 11.21% over the past 24 hours. BTC has a market cap of $158.95B with a 24 hour volume of $57.59B.
Chart by CryptoCompare
Bitcoin is down 11.21% over the past 24 hours.
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Cover Photo by Smit Patel on Unsplash
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Cole is a freelance journalist and university student studying philosophy. He focuses primarily on covering cryptocurrency and blockchain-related news. He owns a non-life-changing sum of Bitcoin and enjoys day trading.
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Author: AuthorCole Petersen Twitter LinkedIn Journalist @ CryptoSlate