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Why This Trader Thinks Ethereum Could Plunge 20% Despite $400 Break

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  • Both Bitcoin and Ethereum have pushed higher after the local lows on Thursday.
  • Both digital assets are up around 5% from those lows, with BTC pushing to $11,600 and ETH to $400.
  • This move brings Ethereum, especially, above the pivotal $400 resistance.
  • $400 is a technical level and a psychological level, with the last break above this level in mid-August triggering a 10% rally.
  • One trader thinks that ETH could plunge 20% in the near future despite the recent strength.
  • Here’s why he thinks so.

Ethereum Could Plunge 20% Towards $320: Analyst Explains

Ethereum is preparing to fall from the $405 highs towards $320 according to a cryptocurrency analyst. The analyst in question shared the chart below on August 28th, noting that he thinks ETH could be primed to move from $405 to $320, which would mark a drop of 20%.

As to why this drop may be had, he cites how $405 is the “cleanest” short setup for him, where a move above that level would represent a continuation of the uptrend while the failure could signal a bearish reversal.

In his words:

“If you ask “why?” $405 represents the cleanest set up with the best stopping point for me to believe that the correction is over and the uptrend resumes. It’s simply the line in the sand for my set ups, below, short favoured, above, we resume upside movement. Good movement on $ETH right up into $405. Somewhere around here is the major decision point for me.”

Chart of ETH's price action over the past few weeks with analysis by crypto trader Cold Blooded Shiller (@Coldbloodshill on Twitter). Chart from TradingView.com

He did note, however, the other altcoins are looking relatively strong compared to Ethereum. This may suggest that altcoins are poised to undergo another leg higher rather than reversing lower:

“The only other thought I have is that the rest of the market (alts) look in great shape and many have completed S/R flips over the course of the night and morning. Perhaps $ETH will show the strength, but that’s what stops are for hey?”

Bitcoin Will Decide ETH’s Fate

Bitcoin is likely to decide ETH’s fate in the near term, though.

Fortunately for Ethereum bulls, the leading cryptocurrency is poised to move higher. One analyst shared the chart below just a day ago, noting that there are three signs showing that BTC will move higher after the $1,000 correction: the “buy 9” as per the Tom Demark Sequential, a bullish crossover in the Stoch RSI, and an uptrending MACD.

There are also other fundamental trends, like Fidelity Investments’ Bitcoin fund and ongoing money printing, set to bring BTC and Ethereum higher.

Image

Chart of BTC's recent price action with analysis by crypto trader CryptoHamster (@CryptoHamsterIO on Twitter). Chart from TradingView.com.
Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Why This Trader Thinks Ethereum Could Plunge 20% Despite $400 Break





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Ethereum

Germany commemorates Euro 2020 soccer team with NFTs

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The German Football Association (DFB) has officially announced the debut of national soccer team nonfungbile tokens (NFTs) in partnership with a major blockchain-based fantasy soccer game provider Sorare.

As part of an official license agreement, the DFB will create digital collectible cards on the Ethereum blockchain of 18 players on the German national team through Sorare’s platform. According to an announcement from Sorare, the cards will be available for use in Sorare’s Global Fantasy Football game for the Euro 2020 soccer championship.

By issuing player NFT cards on Sorare’s platform, the DFB aims to find new revenue streams as well as provide more fan engagement opportunities, particularly as COVID-19-related restrictions have resulted in limited game attendance in recent months. 

Related: Crypto fan tokens a mixed bag for game-deprived soccer fans

“Especially in the Corona pandemic, digital offers were and are the only way to enter into direct exchange with our fans. But even though the Corona crisis will hopefully soon be over, we want to continue to use the possibilities of digitalization much more intensively, also with our partners, and offer our fans new interactive opportunities,”  said Holger Blask, the DFB’s managing director of marketing and sales.

Founded in 2018, Sorare is a global fantasy football game that allows users to play with officially licensed digital cards featuring 140 football clubs including Liverpool, Real Madrid, Bayern Munich, Juventus and PSG. Last week, the French Football Federation launched its own series of player NFTs prior to the team’s match against Germany.