On Tuesday, September 8th, the ETH is consolidating, generally trading at $347.97 USD. Since the beginning of the months, the rate of the main altcoin has dropped by 25%.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
On D1, ETH/USD keeps correcting in an uptrend. The price is currently testing 38.2% Fibo. A breakaway of this level will signal further correction to $290.00 USD. Meanwhile, a bounce off 38.2% Fibo will signal further development of the uptrend. The MACD histogram is below zero, and the signal lines have formed a Black Cross. Judging by all the factors, in the nearest future, the pair will go on correcting to the target level of 50.0% Fibo. The goal of the growth after the pullback remains at $500.00 USD.
On H4, the pair keeps correcting the uptrend. The Stochastic is in the oversold area, trying to form a Golden Cross. This may signal the end of the correction, though the chances for a decline to $290.00 USD are still quite high. Upon completing the correction, the pair may go on developing the uptrend to $500.00 USD.
According to the Santiment observations, key keepers of the Ethereum coins have started getting rid of the asset. Data shows that during a week, the volume of the ETH kept in the wallets of the leading users shrank by 6.1% to 15.89 million coins from 16.92 million earlier. Could this lead to a decline in the ETH rate? Yes, sure, but the leaders must have had some reason for getting rid of the asset.
The ETH has been having a strong fundamental driver – the upcoming launch of the Ethereum 2.0 network. We used to expect it in summer, but the summer is over, and the presentation never happened. The company keeps carrying out separate partial tests but gives no clear information about the date of the full-scale launch. This might be the reason for the decrease in the coin volumes in the top-100 wallets.
Some say that the decrease in the number of coins stored in the largest wallets is no signal for the upcoming sales of the asset. If so, we are just witnessing the process of reshuffling.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.