EtherETHThe value of Bitcoin has dropped by about 5%.BTCA bearish continuation set-up now indicates the possibility of further losses.
Takeaways:
- The bear flag pattern on ETH/BTC could indicate a 10% fall towards 0.026 BTC by May.
- Ethereum’s 32.33% stake ratio record is reducing the liquid supply.
Ether’s bear flag is at risk of a 10% correction
After a sudden drop, the ETH/BTC has been consolidating in a parallel channel that is rising.
Bear flags in technical analysis are usually viewed as continuation pattern. The analysts calculate the target price by taking the peak of the last decline, and extending it downwards from the moment the price crosses below the lower trendline.
Chart of ETH/BTC for the day. Source: TradingView
Using this method, the ETH/BTC measured downward target in May is near 0.026 BTC. This represents a 10% drop from current levels.
Noteworthy, an earlier bear flag breakdown preceded roughly a 15% fall, suggesting that this current setup may favor Bitcoin once again in the short term.
Alternatively, the bearish breakout setup can be postponed if ETH/BTC rebounds above the flag’s trend line. This will open the way for a rally towards the upper boundary of 0.032 BTC near May.
Ethereum stakes reach record high levels
Ethereum fundamentals continue to improve, even though ETH is still lagging behind Bitcoin.
Data resource reports that the network’s staking percentage hit a record high of 32.33 percent on April 21. This is based on the fact that about 39 millions ETH were locked in 816.578 validators. Token Terminal.
Ethereum stake ratio Source: Token Terminal
This is the first time that more than a third of Ethereum’s current circulating supply was committed to the Ethereum network.
The month of April began with the Ethereum Foundation completed its 70,000 ETH staking targetIt is shifting its positions to yield-generating stocks instead of a potential supply on the sell side.
Meanwhile, BitMine Immersion Technologies now holds 4.976 million ETH. or 4,12% of the total supply. Around 3.334 millions ETH have already been staked via its validator network.
In general, this means that less ETH will be available to trade. It can lower the pressure to sell and help support prices, particularly if there is a steady increase in demand while supply continues to shrink.
Related: Ethereum whale opens $90M long bets as ETH price chart eyes $3.2K
Ether’s performance has been behind Bitcoin in part because Ethereum is “ultrasound moneyBitcoin’s value continues to grow despite the fact that “theory” has been weakened accumulation by firms like Strategy The word is a accelerating integration into Wall Street portfolios.
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Source: cointelegraph.com
