Ethereum Is Poised to Correct Further: Technical and On-Chain Signals
An analyst is having trouble being bullish about Ethereum’s short-term prospects as the asset slides below pivotal short-term price levels. The analyst in question shared the chart below that shows the price of ETH has lost a pivotal moving average that could prove disastrous for bulls:
Chart of ETH's price action over the past few weeks with level analysis by trader Pierre (@Pierre_crypto0 on Twitter). Chart from TradingView.com
On-chain fundamentals corroborate the expectations of a further pullback for Ethereum after a 10% drop from the highs.
Blockchain analytics firm Santiment reported that Ethereum’s decreasing number of users despite an increasing price is worrying its analysts. The firm explained that this divergence is risking the viability of ETH’s medium-term rally:
Chart from Santiment, a blockchain analytics firm, that shows Ethereum's daily active addresses vs. the price divergence model. Current as of August 18th.
All Eyes on the Dollar
It seems that Ethereum’s price action, or at least that of the crypto market, is being dictated by the price of the U.S. dollar relative to other currencies. The Dollar Index is up 1% in the past 24 hours and global markets, including gold and equities, have dropped.
The dollar dropping further could fuel more inflows into the crypto market, boosting the prices of Bitcoin and Ethereum.
Featured image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Why It's "Hard" for This Analyst to Be Bullish on Ethereum as Price Flirts With $400
Originally from Bitcoinist.com https://ift.tt/3iQF7Em
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