As a researcher with experience in cryptocurrency analysis, I find Shin Forex’s analysis of Ethereum’s price trend compelling. The dwindling liquidity and the break below the support level of 0.05 in the ETH/BTC chart are clear indicators that Ethereum is currently outperforming Bitcoin negatively. Moreover, the historical precedent of a crash following similar price formations in 2016 and 2019 adds credibility to this analysis.
As an analyst, I’ve observed a striking resemblance between the price trends of Bitcoin and Ethereum in recent times. Given that Bitcoin has been on a downtrend, it’s no surprise that Ethereum, being the second-largest cryptocurrency by market capitalization, has mirrored this performance. However, I believe Ethereum’s bearish fundamentals set it apart from Bitcoin. Several crypto analysts share my view that Ethereum is more likely to experience a deeper decline due to its unique set of challenges.
Ethereum Poised To Crash Further
As a dedicated cryptocurrency researcher, I recently came across an intriguing analysis shared by a respected industry figure named Shin Forex on the TradingView platform. In his examination of the Ethereum-Bitcoin chart, he highlighted several developing trends that could potentially impact the Ethereum price negatively.
During this period, the analyst noted that Ethereum’s liquidity has been decreasing. Instead of moving towards altcoins such as ETH, the funds are heading towards Bitcoin. This trend implies waning investor interest in Ethereum and with the liquidity shifting to Bitcoin, Ethereum lacks any significant support at present.
The crypto expert adds that the Ethereum-to-Bitcoin (ETH/BTC) ratio has recently fallen beneath its previous support level of 0.05. This decline is significant because history shows that each time the ETH/BTC pair has breached this support, it has marked important turning points in the past market cycles, as referenced by Shin Forex – specifically, those occurring in 2016 and 2019.
Each of the two previous occurrences resulted in a downturn in ETH/BTC‘s price, which subsequently prevented any potential rally. The crypto expert is anticipating that history will repeat itself, and ETH/BTC may dip below 0.04. Such a decrease could negatively impact Ethereum, with the analyst estimating a potential drop in its value to approximately $2,500.
Can ETH Price Survive The Crash?
In the immediate future, Ethereum’s price seems unfavorable given its present downtrend within the existing price channel, as per the cryptocurrency analyst’s assessment. Nevertheless, considering a broader perspective may provide some insight into Ethereum’s potential recovery following any potential market correction.
Based on Shin Forex’s analysis of Ethereum’s chart from past occurrences of similar formations, it appears that Ethereum has a history of experiencing significant inflows of capital following price crashes. For instance, in November 2016, the price plunged dramatically but bounced back strongly within a few months as the ETH/BTC ratio reached a new record high.
In 2019, much like in the past, there was another instance where a market downturn occurred before an uptrend. The Ethereum price drop preceded a market surge, although it wasn’t as swift as previous occasions. If this pattern persists, then it seems inevitable that Ethereum will experience another crash. However, a recovery is anticipated, which could mark the start of yet another significant rally.
Currently, bears are in control of the Ethereum market and have managed to push its price below the $3,000 mark. At present, Ethereum is priced at $2,975, marking a minimal 0.36% decrease over the last day as per Coinmarketcap’s data.
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2024-05-10 00:04