Following FTX’s demise, Ethereum and the whole cryptocurrency industry in general experienced one of its most challenging periods. Because of this, the value of ETH, a significant alternative currency, has plummeted by over 36% in the last week.
Bearish emotion may be pervading over the cryptocurrency market, but the second most popular cryptocurrency is now trading almost sideways. But @sanr king, a contributor to Santiment’s insights, has been thinking about this pricing stability.
One should view his observation of a heavy influence from whales in the market with caution, as this is often a precursor to a more severe bear market. Now, what does the ETH chart reveal?
ETH Prognosis: Dark Clouds Ahead
According to @sanr king, the present market model cannot account for the whales’ “abnormal” accumulation period. This is risky since it suggests the coin is fairly priced in relation to the market as a whole.
To recapture bullish momentum, ETH will need the market to correct its overvaluation, which is currently a tall order given the current bearish trend. After losing 6.4% over the past week, ETH’s price is establishing a double bottom in front of the previous price movements.
This bearish formation occurs following a retreat, which transpired in the $1,214 price range in this instance. The latest price movement is barely above the 23.60 Fibonacci retracement line.
A breach below this Fibonacci level would confirm a bearish break and bolster the market’s existing bearish momentum.
The fact that investors are more ready to HODL than sell, reflecting a high level of investor confidence in the present market direction, does not help matters. Which in this instance is a decline.
ETH Bears Take The Driver Seat
The current position is unlikely to improve in the near future, as a decline is more likely to occur than a rebound. Even though RSI values are rising over the long haul, the CMF value of -0.18 indicates a complete bear market takeover.
As the scenario worsens in the next days and weeks, the crypto sector will endure a great deal more of suffering. ETH will soon lose its footing at $1,200 and could fall to the $1,100 range.
ETH total market cap at $147 billion on the daily chart | Featured image from Watcher Guru, Chart: TradingView.com
