Ethereum has been consolidating since bouncing off a critical descending trendline on October 3. Buyers are struggling to overcome a strong resistance around the $2,490 region, which is strengthened by the 50-day Simple Moving Average (SMA) and breaching just above it.
While the top altcoin has been experiencing sell-off pressures, experts now believe these two Ethereum-based meme coins, Cutoshi and Pepe, could bring it back.
Cutoshi (CUTO): Memes For The Future
Cutoshi is a meme-inspired token infused with DeFi functionalities that is expected to change the bearish trend of Ethereum. Inspired by the Chinese Luck Cat, often associated with luck and prosperity, Cutoshi wants to tokenize good fortunes and bring them to the blockchain. Following Satoshi Nakamoto’s vision of blockchain technology, Cutoshi will create a vibrant ecosystem driven by its community where decision-making lies in the hands of its users.
Cutoshi introduces a multichain DEX, which enables users to swap assets across various chains, saving traders time and money. Aside from the CUTO DEX, it has a reward mechanism where users can optimize their earnings through the Cutoshi farming protocol. This involves participating in quests and challenges to earn points, which can be redeemed for more $CUTO tokens. Additionally, Cutoshi will launch a learning academy where new investors can learn about DeFi concepts, trading and how to build portfolios.
Cutoshi is committed to long-term value appreciation. Backed by a deflationary mechanism and a total supply capped at 440 million, the CUTO ecosystem will experience token scarcity, evidently increasing the value of the token as supply decreases and demand increases.
Cutoshi is projected to hit $1 million by the end of October. At a low presale entry point of $0.022, Cutoshi could follow Shiba Inu’s footsteps, exploding by 300% this month alone.
Ethereum Bearish Outlook: Could It Make A Comeback?
Ethereum price has been trending towards the $2,395 support level as the 50-Small Moving Average resistance holds strong. The current bearish can change drastically if Vitalik Buterin emerges as the economics Nobel Prize winner on October 14. Meanwhile, the top altcoin has recorded exchange net inflows since October 5.
Its exchange reserves have also been trading upwards during this phase. This indicates that the Ethereum coin has been experiencing selling pressures among investors. And this trend may continue to rise. Notably, the top altcoin has neared $2,400, a psychological level, after posting $16.64 million in derivatives liquidations. Ethereum coin has been consolidating after it bounced off a key descending trendline on October 3.
Source: Tradingview
Buyers have struggled to overcome strong resistance around the $2,490 region as the 50 SMA strengthens it to exceed this level. As a result, the ETH price will attempt to retest the $2,395 support level of a rectangle channel. A bounce-off at this region would see Ethereum’s price rally above $2,490 to test its critical resistance level near $2,707. If the ETH coin completes this movement, it will reclaim the $2,817 level.
PEPE Technical Analysis
Since hitting $0.0000119, Pepe Coin has struggled to maintain bullish momentum. Its weekly charts indicate that the Ethereum-based meme coin has been trading sideways and potentially signaling a breakout. Pepe Coin is retesting critical resistance around the $0.00001 mark but has faced multiple rejections at this level. Interestingly, Pepe Coin Token has adjusted its DAA divergence, remaining positive throughout the past week.
This indicates that the demand for Pepe Coin is rising, and at the same time, the market is well positioned to reverse a downtrend. Bullish momentum is imminent as the Pepe Coin price is yet to catch up with the strengthening fundamentals. Moreover, the meme coin is undervalued. Additionally, PEPE Funding Rates Aggregated by Exchange have turned green at 0.006% and have largely been positive throughout the past week. It has also shown longs are in high demand compared to shorts.
Source: Coinglass
This scenario is also observed with OI Weighted Funding Rated, which suggests an overall shift in market sentiments as investors regain confidence in Pepe Coin prospects. Moreover, Pepe Coin’s Open Interest had increased from 2.88% to $140.15 million, highlighting the opening of new positions in anticipation of further gains.
Can Pepe Coin And Cutoshi Change Ethereum’s Bearish Outlook?
Cutoshi and Pepe Coin are both Ethereum-based meme coins experiencing an influx of investor interest. These bullish sentiments around them can revive the bearish trends on the Ethereum coin, possibly staging a rally.
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