Ethereum price is struggling to keep support at $1,830 intact, while the entire crypto market continues with its longstanding lull. Since the rejection from $2,000 around mid-July, recovery attempts have been minimal, with the least resistance path mainly downward.
Based on the prevailing technical picture, bears have the upper hand, especially with Ethereum price below all the major moving averages such as the 50-day EMA (red), the 100-day EMA (blue), and the 200-day EMA (purple).
Support at $1,830 is critical for the resumption of the uptrend, but if declines intensify, the buyer congestion at $1,800 will come in handy.
The crypto winter has lasted well over two years with attribute to many attacks on the blockchain ecosystem, including the Terra crash “through which governments are stepping in with a regulatory framework… to protect investors,” Michaël van de Poppe, a popular analyst told investors on Friday.
This push to regulate the market, although understandable, is exerting a lot of pressure to the extent of risking the survival of the crypto ecosystem.
In addition to the recently resolved matter between Ripple and the SEC, the regulator is suing Coinbase and Binance, and the DoJ has been investigating the latter exchange platform. In all this, proposals for Ethereum and Bitcoin exchange-traded funds (ETFs) have surged in the past couple of months, bringing institutions like Blackrock and Valkyrie into the industry.
Ethereum and most other altcoins, according to Poppe, “have been trending downwards for 18-24 months straight.
However, one notable fundamental factor is that the supply on exchange continues to shrink to the lowest levels while staking both on the Ethereum protocol and liquid staking platforms like Lido soar to the highest levels since the implementation of the Shanghai upgrade.
The mundane market structure represents “the second stage of capitulation, which is time.” Investors will continue to feel like markets are unresponsive, with some shunning crypto for other industry sectors.
As for investors, perhaps excluding traders, it is wise to keep calm and be patient with the market. Accumulation, according to Poppe the best strategy at the moment, with institutions like Blackrock jumping in.
The bearish outlook in both the Moving Average Convergence Divergence (MACD) and the Money Flow Index (MFI) hints at declines continuing to $1,800 in the short term. In addition to the sell signal, the MACD holds below the mean line (0.00), further reinforcing the bearish grip.
If bulls manage the arrest the bearish situation at $1,830 traders can prepare to seek fresh exposure to ETH longs after the price steps above the 100-day EMA. The subsequent break above the 50-day EMA at $1,866 would serve as confirmation for a stronger uptrend to be validated by recovery past the descending trendline for gains above $2,000.
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