This Analyst Believes Ethereum May Lose 80% Of Its Value
May 17 2022 - 2:34PM
NEWSBTC
According to a recent Bloomberg article, John Roque of 22V research
believes that Ethereum might fall to $420, a loss of 80% from its
present price, and here’s why. Ethereum May Fall 80% The trader
believes Ethereum, which is presently trading at $2,000, is about
to break through the support zone and will most likely fall below
$420. Roque drew attention to a price range in which $3,580 is the
top and $2,000 is the bottom. With Ether falling below $2,000, it
is no longer within the previously specified range and will begin
to fall to the next significant chart support at around $420.
Source: 22v Research Because the second-largest cryptocurrency is
rapidly losing value, it has fallen below all moving averages,
including the 50-, 100-, and 200-day lines. The above-mentioned
indicators’ downward movement is a significant bearish factor for
any asset. Ethereum is also oversold on both the weekly and daily
charts, according to Roque, which is why it cannot rally in the
foreseeable future. ETH/USD trades aroun $2k. Source: TradingView
While the analyst claims that Ethereum is basically “over” key
support levels for the second largest cryptocurrency on the market
may still be seen. On the weekly chart, for example, traders have
yet to test 200-week average support. Related Reading | Bitcoin
Indicator Hits Historical Low Not Seen Since 2015 ETH Exchange
Supply Rising Santiment, an on-chain data provider, gives us an
insight into what Ethereum’s next price action might be (ETH). On
an 8-hour chart, large shorts for Ethereum at $2,000 have built up,
according to the data provider. However, according to Santiment,
this normally doesn’t work out with the shorter, and a short
squeeze is likely to ensue. As a result, the price of Ethereum may
rise again. Data shows funding rates history. Source: Santiment The
ETH exchange supply is another item to consider. Santiment
observes: “While we saw a nice drop in supply on exchanges for the
past year or so, May 1st 2022 saw a huge increase in supply on
exchanges as folks rushed to exit their positions, which is clearly
reflected on the price itself.” As a result, any future increase in
the exchange supply will cause another decline. This indicates that
investors are panicked and have given up totally. Although the
situation appears to be dire, this may be an excellent time to fill
new roles. Related reading | Ethereum Hashrate Breaks All-Time
High, Will Price Follow? Featured image from iStockPhoto, Charts
from TradingView.com
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