Next Bitcoin halving event This is the fourth time that BTC will experience this important event. The crypto market has been experiencing a steep decline which usually occurs before the halving. Analysts believe that Ethereum’s current price pullback is temporary and expect a rebound shortly after the halves.
Crypto Triggers Discount trading
The crypto market experienced a steep decline in the past 24 hours. This led to the liquidation of more than $300 million. The crypto market has been experiencing significant volatility. Ethereum (ETH) is particularly affected, as its price is falling.
QCP recommends that investors be cautious as the prices of Bitcoin and Ethereum fall due to an increase in liquidations. They suggest purchasing the coins at prices below current market rates. Investors are therefore set to defend Ethereum’s support lines as the price could rise due to the “buy the drop” mentality.
IntoTheBlock’s data shows that the ETH market price is currently down 1.69 in terms of its MVRV (market value/realized value) ratio. It is possible that Ethereum’s value has reached its actual value or value of the most recent transaction. The price spike was caused by traders who sold their positions at the peak value to book their profits. This has a negative impact on the buying confidence.
Also, the Ethereum/Bitcoin rate recently reached a low three-years ago of 0.046. This was last seen in May 2021. Recent breaching of critical support levels on the ETH/BTC may signal a possible decline in Ethereum price.
Each time that the ETH/BTC pairs broke their support lines over a three- to six-month period, the ETH/USD experienced a drop of 20% from its previous peak. The loss of support for the ETH/BTC has been noted, however the impact is still uncertain. The ratio re-established itself above the support levels to keep buying momentum.
What is Next for the ETH price?
Price of ether Around the mark of $3,300 there is a lot of bearish pressure. The price dropped again and dipped under the EMA20. Bulls aim to stop further price decline by keeping the price over the psychological $3K level. As I write, the ETH price is $3,057. This represents a decline of over 4.9% within 24 hours.
The price might rise towards $3,142 which is the critical 20-day EMA to watch. If the price falls below this level, then it could fall to $2.870 and even further down to $2.721.
If the price is above $3100 it could indicate that there will be sideways movement in the market. Bulls could be strengthened by a push over the 20-day EMA, which would lead to a possible surge toward $3,300. Buyers need to push the price up above $3,600, and then $4K, the main resistance.
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Shayan Chowdhury
Shayan, a journalist and digital nomad, is also a freelancer. His in-depth analysis and research allows him to produce high-quality articles for Coinpedia.