The Ominous Ethereum Comparison That Will Leave Bulls Petrified
July 27 2021 - 4:21PM
NEWSBTC
All across finance, the conversation of the day has been centered
around China and the ongoing regulatory crackdown As it
pertains to the crypto market and assets like Bitcoin and Ethereum,
holders are wondering if there could be spillover effect and
additional FUD that could on the ongoing recovery in play. But it
is in the Tencent chart itself that suffered a devastating collapse
today that should have Ethereum bulls worried due to a frightening
comparison between the two. Making matters worse, knocking on wood
won’t help, as the Lumber futures chart could help shed a light on
what the next target might be for the top ranked altcoin. How The
China Regulatory Crackdown Is Hurting Crypto, Chinese Stocks Ever
since Black Thursday last year markets have been in an explosive
uptrend. Bitcoin rallied more than three times its former all-time
high, Ethereum nearly four times as much, and even the stock market
is more than double the value it was more than one year ago.
Cryptocurrencies corrected harshly a few months ago, but the stock
market kept on climbing. The US stock market still is, although as
of today the rally to new record highs has taken a pause – a pause
due to fear related to a completely different region. Related
Reading | TA: Ethereum Trims Gains, Why ETH Could Restart Its
Rally In addition to the country banning Bitcoin mining and causing
other dramatic that hurt crypto prices, China has been rolling out
a widespread regulatory crackdown that has crippled certain stocks
in the country. For example, Tencent dropped more than 10% in the
last 48 hours alone. Such a drop is nearly unheard of in the stock
market, while that type of move is typically a walk in the park by
crypto standards. An equally sized move in an altcoin like
Ethereum, could be much worse by comparison. Let's hope Ethereum
doesn't fall victim to a similar fate | Source: ETHUSD on
TradingView.com Ethereum Chart Comparison Has Bulls Knocking On
Wood A comparison with Tencent is exactly why crypto bulls need to
be worried and fearful. The top altcoin that the rest of the
industry is built on, is showing a structure very similar to
Tencent before the massive breakdown. What’s worse, is the fact
that almost all price action over the last three years between the
two assets looks highly similar. Placing the two assets next to
another once-trending asset that has since collapsed, further
paints a frightening picture. Related Reading | Why The Next Crypto
Bear Market Will Be The Worst Yet Random-length lumber futures have
a chart that shows a drop so nasty, that if the same thing happened
in Ethereum, it would take price per coin back to around $3725. The
three charts appear to have bottomed at around the same level and
date, topped around the same level and date, so why wouldn’t they
continue to behave in a similar fashion? Not loving the
similarities in these charts. Could #Ethereum follow this path?
pic.twitter.com/filaaaFJMa — Tony "The Bull" Spilotro
(@tonyspilotroBTC) July 27, 2021 What do you think, is Ethereum in
trouble? Follow @TonySpilotroBTC on Twitter or via the
TonyTradesBTC Telegram. Content is educational and should not
be considered investment advice. Featured image from
iStockPhoto, Charts from TradingView.com
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