Bitcoin
BTC$44 194.78

1.91%

Ethereum
ETH$2 370.51

-0.24%

Tether
USDT$1.000302

0.02%

Binance Coin
BNB$244.77

4.20%

XRP
XRP$0.687779

6.90%

Solana
SOL$76.42

5.66%

Ethereum's bearish U-turn? ETH price momentum fades after $1.6K rejection


26 Jul 2022

#Ethereum

Ether risks falling further below $1,350 in August as the ETH price rally is losing steam. Ethereum's native token Ether (ETH) tumbled on July 26, reducing hopes of an extended price recovery. The ETH/USD pair dropped by roughly 5%, followed by a modest rebound to over $1,550.

Ethereum gets rejected at $1,650 

These overnight moves liquidated over $80 million worth of Ether positions in the last 24 hours, data from CoinGlass reveals. The seesaw action also revealed an underlying bias conflict among traders who have been stuck between two extremely opposite market fundamentals. The first is the euphoria surrounding Ethereum's potential transition to proof-of-stake in September, which has helped Ether's price to recover 45% month-to-date.

However, this bullish hype is at odds with macroeconomic headwinds, namely the Federal Reserve's and the European Central Bank's hawkish stance, which put pressure on risk assets and saw Ether price shed 68% from its record high of $4,950 to date.

But the short term could provide some upside for ETH price. For instance, analyst PostyXBT anticipates Ether to undergo an interim upside retracement based on the token's recent swings inside an ascending channel pattern, as shown below. In other words, ETH's price could hit $1,700 ahead of July's close if the pattern plays out.

Bearish divergence

Nonetheless, watching the same recovery trend in conjunction with Ether's four-hour relative strength index (RSI), a momentum oscillator indicator, shows extreme disparities. Interestingly, Ether's price has been forming higher highs since July 18, while its RSI has been making lower highs simultaneously.

That shows a bearish divergence between ETH's price and momentum, meaning bulls have been losing their grip on the market, and a downtrend may follow. Ether also risks breaking below its ascending channel's lower trendline, which coincides with two more price supports: the 50-4H exponential moving average (50-4H EMA; the red wave) at around $1,500 and the 0.5 Fib line near $1,475.  

Losing these key supports would likely push below $1,350 (the $0.382 Fib line and the blue 200-4H EMA wave) in August, down 10%–15% from Ju's price, should this bearish scenario play out.


Related

Crypto may be ready for a new leg down
Crypto may be ready for a new leg down
Cryptocurrencies wait for a signal
Cryptocurrencies wait for a signal
What are dynamic NFTs?: Use cases and examples
What are dynamic NFTs?: Use cases and examples
Shanghai Upgrade Fires Up ETH and Altcoins
Shanghai Upgrade Fires Up ETH and Altcoins
Challenges of data accessibility in the NFT market
Challenges of data accessibility in the NFT market
Is the A.I. revolution about to pump Nvidia stocks?
Is the A.I. revolution about to pump Nvidia stocks?
Five tips for investing during a global recession
Five tips for investing during a global recession
What is NFT ticketing and how does it work?
What is NFT ticketing and how does it work?
The crypto market is cheaper than a trillion again
The crypto market is cheaper than a trillion again

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 80% 31 $44 194.78 1.91% 13.95% $864 662 582 104 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 80.4% 36 $2 370.51 -0.24% 12.72% $284 977 242 137 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.8% 1 $1.000302 0.02% 0% $90 362 894 198 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 86% 17 $244.77 4.20% 6.71% $37 130 937 126 BNB 7 days price change
5 XRP (XRP) XRP XRP predictions 84.8% 28 $0.687779 6.90% 11.78% $37 110 813 461 XRP 7 days price change
6 Solana (SOL) SOL Solana predictions 78.8% 38 $76.42 5.66% 23.68% $32 550 547 517 SOL 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 96% 1 $1.000017 0% 0.01% $24 500 256 641 USDC 7 days price change
8 Cardano (ADA) ADA Cardano predictions 76.8% 38 $0.592594 23.64% 53.34% $20 929 830 721 ADA 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 70.8% 53 $0.103093 6.13% 22.44% $14 655 575 281 DOGE 7 days price change
10 Avalanche (AVAX) AVAX Avalanche predictions 76% 50 $32.21 18.70% 46.79% $11 780 639 091 AVAX 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 96% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 TRON (TRX) TRX TRON predictions 94% 7 $0.108349 2.94% 4.72% $9 585 997 392 TRX 7 days price change
13 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 92.4% 7 $0.108050 3.07% 4.47% $9 559 528 631 WTRX 7 days price change
14 Chainlink (LINK) LINK Chainlink predictions 76% 38 $17.16 6.87% 10.20% $9 554 991 817 LINK 7 days price change
15 Polkadot (DOT) DOT Polkadot predictions 80% 38 $7.45 18.63% 35.64% $9 346 749 094 DOT 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2023 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.