Saturday, so far, has been a relatively neutral day for the cryptocurrency market. Bitcoin, Ethereum, and a majority of other large caps saw effectively zero losses or gains on the day, while trading volumes across the board tanked.
Despite this non-action, analysts are currently charting a move lower for Ethereum (ETH/Ether), citing bearish technicals and an overall lull in the broader crypto industry.
Ethereum Price Looks Weak, Analysts Reckon
Prominent trader Jacob Canfield recently noted that Ethereum’s chart looks rather weak, looking to the fact that it fell out of a bear flag, failed to break above the upper bound of a falling wedge, and is looking to retest a key horizontal support.
He claims that a move to and consecutive break of $165, the horizontal support aforementioned, may result in a 15% to 20% collapse to $142, which is where ETH’s next key support lies.
Canfield’s analysis is eerily similar to that posted by The Crypto Dog. As reported by this outlet earlier, Dog also believes that ETH is in the midst of a massive falling wedge that originates from the June peak. “That mini-falling wedge played out on $ETH, looks like a larger one may be forming now,” he wrote, referencing a chart he posted.
Not only is Ethereum looking weak but Bitcoin is too. Case in point, a “death cross,” which is when a short-term moving average crosses below a long-term moving average for an asset, is forming on the Bitcoin chart.
Should this technical pattern come to fruition on Bitcoin’s chart, it will show that bears have control of this market. As a trader pointed out, the last BTC death cross, which was observed in 2018, marked the commencement of a long-term price correction.
With the two assets being strongly correlated, a move lower in the price of Bitcoin could lead to an equally harrowing drop for Ether. On the other hand, a surprise spike higher in BTC‘s price could result in Ethereum showing some strength.
Strong Fundamental Trend
While Ethereum’s price may be on thin ice, the project’s fundamentals are still rock solid. Cryptocurrency investor Spencer Noon recently noted that while ETH has collapsed from its all-time high, the amount of value locked in Ethereum-based decentralized finance applications — some say these are the blockchain’s “killer app” — continues to set fresh all-time highs.
Outside of so-called “DeFi”, massive corporations have begun to launch Ethereum blockchain pilots to make their businesses and transactions more efficient. Companies involved include Thomson Reuters (Reuters), IKEA, Fatburger, Morningstar, and Banco Santander.