ETH’s Price Consolidation will End in June?
In a recent podcast with Lex Friedman, Ethereum founder Vitalik Buterin shared his views on a number of topics ranging from Ethereum’s advantage over Bitcoin to Elon Musk’s crypto strategies.
“You would make a mistake if you were to ascribe too much sophisticated malevolence or any deep intentionality to the whole process. He’s just a human being, and he likes dogs just like I like dogs,” said Buterin on Musk’s preference for Dogecoin.
“Bitcoin is the blockchain for money and Ethereum is built from the start as a general-purpose blockchain.”
“There is Ether, the asset on Ethereum, but you can also make decentralized financial things, what we call DeFi today…You can make ENS, or a decentralized domain name system, you can put prediction markets on it [Ethereum],” explained Buterin, reasoning that in the future there will be a need for a lot more than just a “blockchain for money.”
Technical Analysis
In the first half of last week, ETH increased from $2,270 to $2,900, but the Bulls suddenly gave up and retreated, and reached as low as $2,551. But today, ETH price surges back to $2,760 region, which seems that the Bulls changes their minds and re-entered the fight. However, it is not yet clear whether this is so, or it is their last attempt to prevent the price from falling to the level of $2,200, otherwise it will be extremely difficult to avoid a further decline and the bears can reach the next support near $1,800 without much effort.
On the daily price chart, the MACD histogram has not shown significant growth in the zone with a plus sign, is already preparing to move to the opposite zone. Thus, once again confirming that the recent price rising was only a small correction in the bearish trend. The RSI indicator is in the neutral zone.
Well, perhaps the strongest bearish signal of this week may be the MACD indicator histogram, which will eventually turn from green to red and be in the negative zone.
If this happens, then, according to the most pessimistic forecasts, the ETH/USDT may drop to $1,400. Moreover, if the most pessimistic scenario is realized, having reached its bottom, a quick upward rebound and a trend reversal in the opposite direction can most likely occur.
Well, there still remains, albeit a scanty one, but still the Bulls have a chance not to yield to the bears, but for this they at least need not to retreat, but to continue to restrain the onslaught of bears. That is, if the price does not fall below $2,200, another bullish run may start.
Disclaimer
The material herein is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell cryptocurrencies or derivatives. The material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon the client’s investment objectives.
