Ethereum Slips 7% as ETH Swings Back to Bearish Territory

Ethereum Slips 7% as ETH Swings Back to Bearish Territory
Table of Contents

After earlier gains, Ethereum bears are back in charge, forcing ETH prices down seven percent in the last 24 hours alone. From the formation in the daily chart, the odds of the coin dropping to new September lows remains high. This is as bears peel back gains posted from mid-June to early August 2022.

Per the current ETHUSDT arrangement, sellers can step up. They could force ETH prices even lower in the next few trading days. As it is, traders, therefore, can search for unloading opportunities in lower time frames, targeting $1.23k in the immediate to medium term.

However, this preview can change if bulls flow back. Most importantly, bulls should reverse the losses of September 15 and 18. These candlesticks were bearish, wide-ranging and engulfing.

Ethereum’s Supply Shock

Presently, Ethereum traders are optimistic based on fundamental factors, citing ETH issuance and the network’s plans to resolve scalability issues permanently.

As we advance, Ethereum will be a high-performance platform that can satisfactorily host even the most intensive dApps. In the long haul, Ethereum lead developers assert that its processing speed will rise to 100k.

This spike will be at the back of diminishing ETH inflation. Therefore, all things constant, ETH’s price could rally; even outperform leading cryptocurrencies, mainly Bitcoin, flipping it as a store of value and ultra-sound money.

Is ETH a Security?

However, there are rising concerns that ETH, following the merge, is now a security, according to the U.S. Securities and Exchange Commission (SEC). Its head, Gary Gensler, has been stepping up its assault on crypto and, in recent days targeting ETH.

In the agency’s assessment, Ethereum’s transactions are primarily processed in the U.S., qualifying the coin as a security.

Ethereum Price Analysis

Ethereum ETH Daily chart for September 28

Currently, ETH is bearish and sellers are redoubling their efforts considering the failure of buyers to flow back and pump prices higher. The sharp reversal of September 27 gains there was a false breakout, tilting prices back to bears.

The failure of bulls to build on from encouraging gains of early Asian and European session on September 27 means ETHUSDT continue to remain within a bear breakout formation from a top-down analysis.

As such, aggressive traders may find unloading opportunities on every attempt higher towards $1.42k, targeting $1.23k. It could be worse for ETH because any liquidation below last week’s lows may see ETH crash to $1.1k, the 78.6 percent Fibonacci retracement level of the June to August 2022 trade range.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

If you found this article interesting, here you can find more Ethereum News.


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews