Ethereum dropped to below $2,900 in the last 5 weeks due to geopolitical fears that have driven investors from the crypto markets.
The following is a summary of the information that you will find on this page.
- On Thursday, the Ethereum price fell briefly to $2872, a five-week low.
- Market sentiment was affected by geopolitical worries and the outflows of ETFs.
- The daily chart confirmed a pennant bearish pattern.
Crypto.news reports that Ethereum (ETHThe price of the stock fell below $3,000 on Tuesday morning, after losing its key support level.
Ethereum dropped in price because investors were risk-averse since the U.S. election of Donald Trump threatened to impose tariffs On eight NATO allies, if the United States did not cede Greenland. Investors moved to Gold and Silver over the last trading session as they waited for macroeconomic conditions to improve.
A drop in demand from institutions for Ethereum also impacted retail sentiment. Data SoSovalue compiled a report that showed over $500,000,000 in withdrawals from U.S. Ethereum ETFs during the two-day period.
The decline of institutional demand is often seen as a catalyst to the bearish price movement for Ethereum. This was evident on Dec. 18, last year.
Ethereum’s price confirmed on the daily chart a pennant bearish pattern which had been formed in early October of last year. When an asset’s value drops rapidly, the pattern forms. The flagpole is followed by the small triangular area known as the pennant.
The price of Ethereum broke the lower pennant trendline, and traders usually enter short positions after that.
Ethereum also fell below the SMA of 50-days at $3.084, a level that has acted as a dynamic barrier for the asset in the past few weeks. The MACD lines also confirmed that a crossover was bearish, which is another signal to sell for those traders who are looking for a shift in momentum.
Together, these indicators are bearish and suggest that Ethereum’s price could drop by 17 percent to $2,500. That is the psychological level that will act as the floor of the cryptocurrency for a volatile time in Q2 2020.
The price of ETH could rise as tensions in the macro-economy ease
As of the publication date, the top altcoin based on its market cap was able to rise above the $3000 mark. news Trump’s decision to not move ahead with tariffs following a “very productive meeting” Mark Rutte is the NATO Secretary General in Davos
The development could provide some temporary relief to Ethereum, and it may help spark a recovery if the price of Ethereum manages to stay above $3,000
A subsequent move above $3.084 will invalidate this bearish prediction.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: crypto.news
