• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
ethereum
Nexo

Textbook Pattern Predicts Ethereum Will Plunge Over 20% if $220 Is Lost

Nick Chong by Nick Chong
2 years ago
in Ethereum, Altcoin Price
0

Ethereum’s price action may be textbook indecision, yet an analyst said that the asset is moving ever closer to a breakdown.

Ethereum Could Plunge Lower 

According to a trader, Ethereum is on the verge of breaking down. He shared the chart below, noting that ETH is trading in a textbook “Chauvashov fork” pattern. The pattern implies a drop to $175 will take place if the formation is broken:

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

“If this Chuvashov fork breaks, ~$175 is the target. If you want some protection, its probably a good time to buy some put options since volatility is so extremely low and options are cheap.”

Ethereum
Ethereum price chart shared by cryptocurrency trader “Edward Morra” (@EdwardMorra_BTC on Twitter). Chart from TradingView.com

There are some fundamentals that may also be threatening ETH’s outlook.

Former Messari head of product Qiao Wang noted that Ethereum users have been subject to high fees recently. He cited a personal experience, which purportedly resulted in him paying over $10 for a single Ethereum transaction:

“I’ve changed my mind after using a dozen of Defi platforms. So long as ETH 2.0 is not fully rolled out, there’s an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX.”

I've changed my mind after using a dozen of Defi platforms. So long as ETH 2.0 is not fully rolled out, there's an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX. https://t.co/vXAAFET3YK

— Qiao Wang (@QWQiao) June 28, 2020

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Fate Tied to That of Bitcoin

Ethereum’s fate is notably tied to that of Bitcoin, though. That’s to say, whatever direction BTC trends in the medium term, ETH should follow.

Just look at the Coin Metrics data below of the 180-day Bitcoin-Ethereum correlation, which is nearing all-time highs.

Ethereum/Bitcoin correlation
180-day Bitcoin-Ethereum correlation data shared by CoinMetrics. The chart shows that the correlation between the two assets is well in the positive, reaching ~0.9. 

Fortunately for holders of the altcoin, the fact that BTC has held the $9,000 region for so long is making analysts optimistic.

One such analyst is Mike McGlone — a senior commodity strategist at Bloomberg Intelligence that often covers the cryptocurrency market.

As reported by Bitcoinist previously, McGlone wrote on July 3rd:

“Volatility should continue declining as Bitcoin extends its transition to the crypto equivalent of gold from a highly speculative asset, yet we expect recent compression to be resolved via higher prices.”

This came shortly after he said that BTC’s recent increase in active users should correspond with a rally towards $12,000.

Notably, Ethereum has also seen a spike in the number of active users, largely due to the decentralized finance (DeFi) craze.

Blockchain analytics firm Santiment, in fact, reported that the number of active addresses is reaching two-year highs. Simultaneously, the number of daily confirmed ETH transactions has begun to tick over one million.

Assuming Ethereum usage also affects ETH’s price and if the correlation between ETH and BTC holds, the asset may reject the expectations it falls to $175.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Textbook Pattern Predicts Ethereum Will Plunge Over 20% if $220 Is Lost
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for many years now. My pieces and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Terra

Terra Flaw: Ethereum Creator And Binance CEO Slam Terra Via Twitter

3 days ago
Stablecoins

Stablecoins Receive Queen’s Blessings As UK Braces For Landmark Crypto Legislation

5 days ago
Terra

Terra TVL Crumbles More Than $14 Billion

1 week ago
Dogecoin crypto

Data Shows Top Coins Among Most Hated Crypto, But Not Dogecoin

1 week ago
Ethereum whales

Altcoin Discount: What Ethereum Whales Are Buying Through The Dip

1 week ago
Ethereum Mining On Nvidia

Nvidia LHR Fully Unlocked: “NiceHash” Allows 100% Ethereum Hashrate On RTX GPUs

2 weeks ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.