Ethereum price analysis: is the price of ETH threatened with another slump to below $ 250?

Ethereum Course (ETH) is the largest platform for decentralized applications and smart contracts. The picture shows an Ethereum coin on a computer behind a price graph.

If we take a look at the Ethereum price and its performance over the past few months, we can see that it has had an incredible rally. From mid-July to early September alone, the price per ETH rose by a whopping 106%. However, this doubling in price has also cost a lot of strength and the correction that we were able to observe in the Ethereum price at the beginning of this month is not too surprising. But is this correction already over?

This is exactly the question I would like to address in this Ethereum course analysis and try to find a suitable answer with the help of technical chart analysis .

Ethereum course is on the brink

The Ethereum course is undoubtedly one of the top performers among the top 10 cryptocurrencies, but recently the entire market has cooled down and more and more uncertainty has spread. The last 6 days this uncertainty has been increasingly dispelled, but the question of whether the market and thus also the Ethereum price has already completed its correction remains open.

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A look at the chart tells us that the Ethereum price is currently trading in a pattern that is strongly reminiscent of a rising, widening formation.

A rising, widening formation can be recognized by the fact that it is bounded below by a horizontal trend line and above by a downward trend line. In the event of a downward breakout, prices are expected to continue to fall, although a pullback occurs in 72% of the time. In most cases, the volume increases to the bottom after the breakout.

The current pattern at Ethereum price currently has all these characteristics, as the following illustration shows. The only thing that currently seems to be between the Ethereum price and lower price levels is the horizontal line of the pattern. After the pullback in the last week, the price per ETH is currently trading above this trend line again and is enjoying its support. So you could say that the Ethereum course is downright on the brink.

Is the price of ETH falling back below $ 250?

The question we now want to shed light on is what will happen if the current support line doesn’t hold at around $ 365 and a day candle closes below it. In fact, this is the more likely scenario according to the statistics, which of course does not necessarily mean that it has to happen.

But what if?

The following measurement rule is used to determine the target price. First, the distance between the high and the horizontal line is calculated. This value is then subtracted from that of the horizontal trend line and the result is the price target. However, this target price is actually only achieved in 43% of cases. So if you want to be on the safe side, you should halve the distance determined in the first step and only then subtract it from the horizontal trend line. This target price is then achieved in 91% of the cases and is therefore considered very safe. I have drawn the latter as „1st price target“ in the above figure and the former as „2nd price target“. Price target „.

The first price target is just over $ 300, which is just below a crucial support level that cushioned the crash on September 5th. As already mentioned, this target price would be achieved in 91% of the cases.

At just 43%, the 2nd price target at just under $ 250 is much less likely, but impossible with nieces. However, there are still some notable support levels between this price target and the current Ethereum price, which would make this price target a very daring bet. In any case, these are only short to medium-term bearish scenarios that have yet to come true. In the long term, I am personally still convinced of the immense upward potential of the Ethereum course. I have already explained in part why this is so in the following article. #nofinancialadvise

Walvissen transfereren $89.637.680 in Bitcoin Zoals BTC ernaar streeft om boven de $10.000 te blijven.

Whale Alert heeft gemeld dat crypto walvissen grote hoeveelheden Bitcoin hebben verplaatst, waardoor ze uit de uitwisselingen naar anonieme portemonnees en naar de Xapo koelcel zijn verhuisd.

89.637.680 dollar aan Bitcoin is verplaatst…

Whale Alert heeft vijf grote transacties van Bitcoin gedetecteerd in de afgelopen dertien uur. De crypto werd overgebracht van de digitale beurzen Bitstamp, OKEX en van de Xapo-portemonnee naar onbekende crypto-adressen – 5.800 BTC.

De rest van het geld werd overgemaakt van Bitstamp naar Xapo – 3.000 BTC.

Nu Bitcoin ernaar streeft om boven de $10.000 support lijn te blijven, lijken sommige gebruikers hun BTC te verplaatsen voor opslag op lange termijn naar de Xapo portemonnee, terwijl anderen het tegenovergestelde doen en zich voorbereiden om hun BTC te verzilveren.

Bitcoin doet zijn best om boven de $10.000 te blijven nadat hij eronder gedompeld is.

Volgens de gegevens van CoinMarketCap handelt Bitcoin in het $10.200 gebied. Eerder vandaag is het vlaggenschip van de cryptocrisis gedompeld in de $9.925 zone.

Maar nu is het weer terug boven de cruciale $10.000 steun.

Zoals eerder gedekt door U.Today, schudt de Bitcoin-markt de zwakke handen op dit moment, nu gebruikers hun BTC-holdings beginnen te verzilveren.

Bovendien is de Spent Output Profit Ratio (SOPR) van Bitcoin gedaald tot onder 1. Deze metrische maatstaf meet de winstratio van de Bitcoin bedraad aan de ketting en is voor het eerst sinds april onder 1 gegaan, zoals gemeld door Glassnode. Dit bevestigt het feit dat investeerders zich op dit moment beginnen te ontdoen van hun BTC.

Bitcoin price below $10,000 caused open interest to fall $653 million, the largest since March

The open interest of Bitcoin futures (BTC) has just had its most extensive daily reduction in the last five months. Yesterday’s 11% drop caused more settlements than on May 9th, when BTC plunged 12.5% to USD 8,600.

Skew’s data shows us that total open interest decreased by $653 million, reaching $4 billion on September 3. That figure includes perpetuals (reverse swaps) and futures with established maturity in OKEx, CME, Binance and the remaining derivative exchanges.

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Yesterday’s move was the largest daily drop since the resounding $1 billion cascade settlement seen on March 13th that caused the price of Bitcoin to fall by 50%. That same day marked the largest massive sale of the Dow Jones Industrial Average since 1987, a drop of 10%.

This dramatic correction might not have been a negative record for the stock markets, but the Nasdaq Composite fell 5%, led by Apple (AAPL -8%), Salesforce (CRM -7.8%) and Microsoft (MSF -6.2%).

Apple shares (AAPL) fell 8% on September 3, causing a drop in its market capitalization of USD 180 billion. This was the largest daily loss for a single company. By comparison, Bitcoin Billionaire market capitalization is currently $194 billion.

Uniswap surpasses Coinbase Pro, Miners and ETH commissions, BTC falls 7% and more. A summary of the most important kryptonews of the week
The manufacturer of iPhones is currently valued at just over $2 billion. Such an impressive figure could buy the entire altcoin market, paying a 1,300% premium to the current altcoin market capitalization of USD 140 billion.

The futures premium temporarily disappeared

Futures markets tend to trade at a small premium to regular spot exchanges. This is not unique to the crypto-currency markets, but rather an effect of the derivative instruments. To postpone the financial settlement of a trade, sellers often demand more money.

This indicator of the premium for futures contracts is known as the basis and usually ranges from 5% to 15% annualized. When the premium is positive, the market is characterized by the existence of contango. On the other hand, a zero to negative premium on futures contracts is unusual and indicates bearish sentiment.

The chart above shows how significant yesterday’s short fall below USD 10,000 was in the futures markets. Such a negative premium situation is known as „backwardation“, and was last seen four months ago, on May 10th to be exact. At that time, Bitcoin (BTC) recovered quickly over the next three days, bringing the base indicator back into positive territory.

The current annualized base of 4% cannot be considered bearish, although it is certainly not as bullish as the 10% level of just three days ago.