ETH has witnessed some noteworthy overnight losses, down a bit more than Bitcoin and many other major altcoins. Accordingly, ETH has erased part of the profits generated from the recent recovery.
This recession move has pushed prices below the key uptrend line that once supported price action, which could be a terrible sign of what is about to happen.
Many traders are targeting further short-term discounts for the second largest cryptocurrency by market capitalization.
ETH returns to $ 150 when analysts turn short
At the time of writing, ETH is trading up 2.18% at its current price of $ 157, a noticeable decline from the daily high of $ 165 set as a recovery peak on the afternoon of April 12.
The bullish move is parallel to Bitcoin but very short and fast. ETH as well as most other cryptocurrencies plummeted after BTC was strongly rejected at $ 7,200.
Over a one-week period, ETH traded down from a high of $ 175 and set a new low at $ 152 early in the morning of April 13.
Earlier, the cryptocurrency had found significant support at $ 155, although the bulls who were unable to hold above this level seemed to point to some potential weakness among buyers.
Accordingly, a popular anonymous trader on Twitter short ETH, with a short-term price reduction goal of $ 145.
#ETH / $ ETH - I'm in pic.twitter.com/hoS8Ed0AZN
- Calmly | full-time trader (@im_calmly) April 12, 2020
It is very likely that ETH will continue to chase Bitcoin in the coming hours and days, which means that the potential drop will be even more apparent if BTC fails to defend the current support level of around $ 6,600.
ETH breaks below the ascending trendline
The grim corollary of the recent sell-off is that ETH falling below the important ascending trendline drove prices higher during the period after plummeting to the area below $ 100 on March 12.
Another well-known Trader on Twitter has given a chart showing that trading below this level could cause the price to drop another 10% before finding some minor support.
Hey @VitalikButerin we might need a pump here to reclaim uptrend - would be a pity to retrace 10% to retest support!$ ETH pic.twitter.com/3p2BzjauK9
- Teddy (@TeddyCleps) April 13, 2020
"We may need to pump here to regain the uptrend - it would be a shame to drop another 10% to retest support."
The short-term 10% discount target highlighted in the above chart also coincides with the view of trader Calmly, suggesting that movement to this level is likely to occur in the coming days and weeks.
Three reasons ETH soon increased after a correction down
ETH has closed above the main trend line
While ETH plummeted yesterday like Bitcoin did, it closed above 2 key support levels.
According to trader Rekt Capital, ETH is in the middle of a long-term ascending triangle bottom (which is a bullish chart), which has the potential to move higher if it breaks up.
Rejection at the blue diagonal resistance ✅
Weekly close above the local trendline ✅
Price-strength confirmation near it ⏱️ (pending)
The two trendlines that form the Ascending Triangle bottom are of interesthttps://t.co/7isGjhOSQA#Crypto pic.twitter.com/TqHDlI0QO5
- Rekt Capital (@rektcapital) April 13, 2020
“Rejection at the blue diagonal resistance line
Close weekly on the trend line
Confirm nearby price intensity (pending)
Two trend lines forming the bottom of an ascending triangle are of interest. ”
Demand for ETH is booming
According to data from leading exchange Bitfinex, there are many traders who have long ETH to 1.8% of the total supply as "margin long on Bitfinex".
1,975 million ETH (1.8% of total circulating supply) is now marginlong on Bitfinex. Just Bitfinex.
+ 250k just got filled over the last 4 hours. pic.twitter.com/xOOrxNR8gw
- lowstrife (@lowstrife) April 10, 2020
Acknowledging this, fund manager Su Zhu concluded after observing a group of traders or whales that they added $ 40 million ETH to the stack for a few hours.
Large $ ETH buy wall on bfx here, 200k ether filled and another 50k remaining in the order book pic.twitter.com/gK701gg6ws
- Su Zhu (@zhusu) April 10, 2020
"Buy a large ETH wall on Bfx here, 200K ETH is filled and there is 50K left in the order book"
Reddit is interested in the Ethereum network
Reddit has launched a new cryptocurrency initiative called "Community Points", a points system based on Ethereum's ERC-20 token.
This has to be user MagoCrypto detect and post videos of your Reddit app on Android (Samsung), integrate wallet with ETH address, along with explanation of digital point / coin system.
“Community points are completely owned by the owner. They operate on the ETH blockchain, which has the same technology as Bitcoin to ensure asset rights and control. Even Reddit can't interfere with your score. ”
According to the beta program videos, these points seem to be different from the traditional points on Reddit.
Although Reddit has not announced new features yet, a spokeswoman for the huge social media forum said it was "working with the community to test its ability to show user participation in the community."
Investors Ryan Sean Adams at Mythos Capital and the writer of the "Bankless" newsletter said that this feature would be very beneficial for accepting ETH:
Reddit rolling out a community tokens system
On ... Ethereum
Community tokens are ERC20s, DeFi-compatible
430 million Redditors
Could this 100x DeFi users?
Wouldn't take much
And other social media platforms will follow
Ethereum is the internet’s property rights system
🚀
- Ryan Sean Adams - rsa.eth (@RyanSAdams) April 10, 2020
“Reddit is implementing a community token system on Ethereum
Community token is ERC20, compatible with DeFi
430 million Redditor
Can this DeFi increase the number of users by 100 times?
It won't take long and other social media platforms follow suit
Ethereum is the ownership system of the internet. ”
In any case, this move is not really surprising. Because Reddit co-founder Alexis Ohanian is a notable Bitcoin cow, while the forum has long been a home for members of the cryptocurrency community.
You can see the price of ETH here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Thuy Trang
According to AZCoin News
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