Ethereum Surges 33% Within 4 days, Will ETH will be able to sustain momentum?



[ad_1]

  Ethereum requires 33% within 4 days, Will ETH be able to support the momentum?

ETH, the native cryptocurrency of the blockchain network Ethereum, has increased by more than 33% over the past 4 days, despite investors' expectations for ETH to continue its downward trend below the level of $ 200 support.

Since September 12, ETH's price has increased from $ 167 to $ 223, reaching a monthly peak at $ 227. Traders have attributed the increase in the value of ETH to oversold conditions demonstrated by the cryptographic market, as demonstrated by Williams Percent Range and a technical indicator shared by the billionaire investor Mike Novogratz.

Factors behind the fall in ETH in September

In All & # 39; early September, less than two weeks ago, the ETH was rated at around $ 300. Abruptly, on September 5, ETH started a sharp fall from $ 300 to $ 211, falling from 29% in a 24-hour period.

Until September 6, the price of Eth was moving in tandem with Bitcoin and the rest of the cryptocurrency market. After a major sell-off on September 5, ETH lost its momentum and continued to move towards the support level of $ 200.

  CEO of BitMex: Ether is a "Sh * tcoin & # 39; which will fall below $ 100
Related: BitMex CEO: Ether is a & # 39; Sh * tcoin & # 39; which will fall below $ 100

During that time, courts around the ETH reached a monthly high, less than a month after the BitMEX 50x-based ETHUSD swap became the most Ether / USD product liquid. While other traders began closing ETH on the major cryptocurrency exchanges such as BitMEX and Bitfinex, ETH struggled to start a corrective rally, declining further to the mid $ 100, which investors did not expect.

Within two weeks, ETH lost almost 50 percent of its value while Bitcoin recovered relatively quickly from its 15% decline and rebounded to $ 6,300. The poor performance of ETH compared to other large cryptocurrencies has probably led the market to show oversold conditions, pushing a corrective upside.

The downward trend of Eth at the beginning of September was intense and the second most important cryptocurrency on the market showed short-term price movements that could be compared with cryptocurrencies and small capitalization tokens of market

The lack of volume on ETH combined with the increasing volume of Tether (USDT) and other stablecoins led investors to cover the value of ETH against the US dollar, creating a domino effect through large exchanges. The price of Eth collapsed in early September due to unforeseen market behavior, rather than specific events and developments.

Major Variable: ICO

ETH showed resilience in the lower $ 200 region and successfully passed the $ 200 resistance level, allowing investors and traders to become more optimistic in the short-term future of the market.

  Vitalik Buterin proclaims the end of explosive growth when ETH values ​​precipitate: how will Ethereum recover?
Related: Vitalik Buterin proclaims the end of explosive growth as the value ETH Lead: how will Ethereum recover?

Most investors have falsely identified the cause of the decline in Eth. Many analysts have stated that ETH collapsed in September and in recent months due to a sale of ETH initiated by ICO projects deployed on Ethereum .

However, Diar researchers found that Ethereum Projects based on still maintain more than $ 500 million in ETH and are on top of most of their ETH reserves that have not sold from & # 39; Ico.

Researchers wrote:

"While global financial data is not disclosed by many companies, the amounts they have in their original Ether treasures at the time of their ICO are public information, some of the most popular and expected projects. , most of which have yet to be launched, are sitting at treasures north of $ 500 million, excluding their cash and their token reserves. "

So, in the future, if ICOs start selling their Their ETH reserves on the cryptocurrency trade, ETH could be vulnerable to another big sell-off, similar to the trend it experienced at the beginning of September.

Ethereum, currently in second place in the markets, is at [] 3.94% in the last 24 hours. ETH has a market capitalization of $ 22.52 billion with a 24-hour volume of $ 1.65 billion

Chart of CryptoCompare

Ethereum has increased by 3.94% in the last 24 hours [19659032] Cover photo by Kristopher Roller on Unsplash

Commitment to transparency: The author of this article is invested and / or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any projects or resources that could be mentioned or linked in this article. Please note this in the evaluation of the content of this article.

Disclaimer: The opinions of our writers are exclusively their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate approve any projects that may be mentioned or linked in this article. Buying and exchanging cryptocurrencies should be considered a high-risk activity. Please do your due diligence before taking any action related to the contents of this article. Finally, CryptoSlate assumes no responsibility in case of loss of money by trading cryptocurrencies.

Did you like this article? Join us.

Receive blockchain news and crypt insights.

Join us on Telegram

  Joseph Young Author

Joseph Young

Joseph Young is a finance and technology journalist based in Hong Kong . He has worked with leading media and news agencies in the fields of technology and finance, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

View the profile of the author

[ad_2]
Source link