- Ethereum price is steady, bears in control?
- SushiSwap migration boosted Uniswap
- More BTC flowing to Ethereum
The Ethereum price may be recovering, but it trails both the USD and BTC, respectively, in the last week of trading. Down by single digits, participants are nonetheless optimistic because of stellar fundamentals.
From the daily chart, bulls are pushing for better prices.
However, price action suggests bears and candlestick arrangements point to a possible retracement and continuation of last week’s correction. Still, there are positive flickers and optimism-injecting movements that could spark demand in the immediate term.
One of them is the attempted break above $360, the main support line of August, and a key resistance level as judged from candlestick arrangement. Whether buyers will sustain this price is highly dependent of on-chain activities.
The SushiSwap migration tempered Uniswap
The failure of SushiSwap to “kill” Uniswap dominates headline and DEX sub-topics. Their migration on the 9th of September attempted to bleed Uniswap’s liquidity and was the finalization of a dark ploy hatched roughly two weeks ago.
The issuance of SUSHI tokens as an extra incentive and use of LP tokens for staking on the Sushiswap liquidity pools drew demand.
This was enough for Chef Nomi to then execute his plan and in a vampire-like attack, attempted to suck dry Uniswap’s liquidity pools in what many saw as being a “hostile takeover”.
Two days later, Uniswap’s liquidity has snapped back, expanding to over $800 million, even after over $800 million worth of coins had been migrated to Sushiswap.
Bitcoin on Ethereum spike to $811.9 million
In a show of confidence, more traders are now wrapping their Bitcoin and tokenizing them to ERC-20 as they seek to diversify and earn extra from yield farming.
According to BTConEthereum, there are 78,809 BTC ($811.9 million) that are now floating in Ethereum, despite how fragile the DeFi scene is.
Ethereum price analysis
The breakout on the 10th of September—though marked with sell pressure in lower time frames, was confirmed today. Visible from the daily chart, prices are now trending above this level.
Also, pasting a simple Fibonacci retracement tool between June and early September trade range reveals that the current consolidation was at around the 61.8 percent retracement mark; an important level for technical analyst.
Although deep, often, a bounce from this level often leads to a retest of the previous high—in this case, $480, with slim chances of a new 2020 high.
Still, this correction must be taken with a pinch of salt. Crypto prices are known for their deep correction, usually by over 75 percent from their previous highs, before stabilization.
As such, while the Ethereum price may rally back to $480, traders should lean on caution, and even expect lower lows back to around the $250 and $270 zone.
Reinforcing this possibility is the failure of buyers to reverse sharp losses of the 6th of September. From an Effort-versus-Results suggest bears and a confirmation of the double bar bearish reversal pattern of the 1st and 2nd of September.
Philip Gradwell, the Chief Economist at Chainalysis, expects the Ethereum price to stabilize, considering the outflow rate of last week:
Dave Levine reckons that, since 90 percent of crypto activity takes place in Ethereum, there is a chance ETH will soar to $10,000.
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