- US President’s COVID report and BitMEX clouds short-term Ethereum price prediction
- BitMEX saga corrected the overbought ETH/USD pair and smoothened the curve
- Lower transaction fees attracting more long-term buyers
Ethereum price prediction – Current price overview
General weakness in the Asian session spilled over to the cryptocurrencies, and every chart turned red for the day. ETH/USD pair began the day at $351 but was soon in the red, which saw the price touch $334. The volatility is above average, and volumes are also on the higher side. The day’s price range is between $334 to $353.
The crypto market was shaken up by the BitMEX storm that took down coin prices across the spectrum. Whether it was Bitcoin or Ethereum, every corner felt the heat. The US Department of Justice and the Commodity Futures Trading Commission (CFTC) joined together hands to take legal action against the BitMEX crypto exchange. Despite issuing a clarification, BitMEX suffered heavy losses as traders wound up their long Bitcoin positions, thereby triggering a sell-off.
Ethereum suffered a 7 percent drop and saw the prices touching a low of $334. The abrupt decline stabilized quickly, and the price recovered slightly to trade at $340 at the time of writing. However, the BitMEX saga has brought bears into the big picture and created anomalies in rather bullish hourly timeframes on the chart thereby clouding the Ethereum price prediction.
Ethereum price movement in the last 4 hours
The 4-hour chart now features a few bearish candles courtesy of the global financial market downturn. Ethereum must hold a $318 support region to safely bypass the current storm. However, if this support breaks, there’s nothing to stop the pair from falling towards $292 level.
On the contrary, there will be intense selling pressure above $352 as short-term traders would book profits. The selling pressure can intensify once the price crosses the $360 mark. The MACD is also touching lower levels indicating there can be a change of trend soon on the hourly charts where bulls can take the driving seat. Ethereum price prediction in the short-term hourly charts will be range bound.
In the past few days, a fall in transaction fees is attracting the buyers back into the ETH fold. Additionally, big non-exchange holders have begun accumulation as the launch of Ethereum 2.0 approaches near. Whales have increased their holdings in the past month to touch 12.92 million ETH. The macro factors and fundamental scene are surely favouring the bulls who look to go past $400.
ETH/USD 4-hour chart – Price completes recovery to touch day’s highs
The 50-day simple moving average is providing ample support to the coin in the short-term. Relative Strength Indicator reading indicates that Ethereum was already approaching the ‘overbought’ region, and the current decline has smoothened the curve bringing the price into oversold territory on the hourly timeframes.
Just like other cryptocurrencies, Ethereum bounced back to take refuge in the equilibrium range. In case RSI dips under 30, the pair will enter the oversold territory, thereby triggering a short-term bullish move.
Last Friday, ETH/USD pair was struggling to breach the 2018 high of $364. The rejection from annual highs signalled that a small correction might be on its way. Since the pair failed to move past this crucial resistance, a price decline was on the charts anyway. Interestingly, ETH/USD price has fallen marginally to $340 despite the broader weakness in the crypto and stock markets worldwide.
The 100-day EMA will cushion any further fall and save the coin from going below the $318 support region. On the upper side, there’s significant resistance at $389, which marks the .382 Fibonacci retracement level. Longer-term Ethereum price prediction is still holding positive bias.
Ethereum price prediction – Conclusion
The diversion in Bollinger Bands has opened up new opportunities for the bears. The widening Bollinger Bands indicate the volatility that is currently plaguing the market and ETH’s short-term outlook. Considering the past few hours, we can decipher that the ETH/USD chart had a relatively bullish bias on the hourly charts. The low volatility and neutral indicators were supporting the DeFi fuelled the underlying bull rally.
However, the BitMEX event has put a dampener on the mood. There are now bearish candles clouding the picture, and volatility has increased significantly. Currently, ETH/USD pair is hovering around $340 level.
In another turn of events, the Grayscale Ethereum Trust, in its latest disclosure filed with the Securities and Exchange Commission, has said that the upcoming ETH 2.0 will have an adverse effect. It said that the forthcoming consensus mechanism, if not implemented correctly, will pose a significant danger to both the ETH and the Grayscale trust’s shares.
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