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Top Binance Trader Optimistic About Ethereum Due to 2 Technical Trends

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  • Ethereum is primed to move even higher according to a top trader on Binance.
  • He cites two technical trends: a falling wedge and ETH’s ability to maintain the low-$300s and high-$200s.

Ethereum Poised to Surge To Fresh High: Leading Binance Trader

Ethereum has undergone a strong retracement since its year-to-date highs near $490. The leading cryptocurrency currently trades for $345, far below those highs due to a strong correction in the price of Bitcoin. ETH is strongly underperforming BTC because the altcoin acts as a high beta version of Bitcoin.

Logan Han, a leading trader on Binance, is optimistic about Ethereum’s prospects, though.

He recently shared the chart below, suggesting that the leading cryptocurrency is on track to hit a new all-time high in the coming months and years.

As to why he thinks this is the case, his chart shared two key distinct technical events:

  • Ethereum has formed a falling wedge pattern from the year-to-date highs. A falling wedge is a textbook bullish pattern often seen before a breakout to the upside.
  • ETH managed to hold the low-$300s and high-$200s.

Chart of ETH's price action over the past few years with analysis by crypto trader and leading Binance analyst Logan Han (@loganhan_ on Twitter). 
Chart from TradingView.com

Following BTC’s Path

Ethereum is likely only to reach a new all-time high if Bitcoin does so, though. Fortunately for bulls, the leading cryptocurrency is primed to move higher.

Raoul Pal, CEO of Real Vision and a former head of hedge fund sales at Goldman Sachs, recently said that BTC is likely to move much higher than it is now due to monetary policy trends:

“Most people don’t understand the latter but is simply put, Powell has shown that there is ZERO tolerance for deflation so they will do ANYTHING to stop it, and that is good for the two hardest assets – Gold and Bitcoin. Powell WANTS inflation. I don’t think he gets true demand push inflation but he will get fiat devaluation, in conjunction with the other central banks all on the same mission.”

Featured image from Shutterstock
Price tags: ethusd, ethbtc, eth 
Charts from TradingView.com
Top Binance Trader Optimistic About Ethereum Due to 2 Technical Trends





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Ethereum

Ethereum investment products see largest weekly outflows on record — CoinShares

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Institutional investment managers continued to sell cryptocurrencies like Bitcoin (BTC) and Ether (ETH) last week, though the magnitude of the outflows have declined substantially from previous weeks, offering early signs that the worst of the market sell-off has subsided. 

CoinShares’ weekly fund flows report showed a $21.4 million drawdown over the previous seven days, compared with a $94 million outflow the previous week. Ether products registered their biggest weekly drawdown at $12.7 million. Funds dedicated to ETH had been outperforming Bitcoin in recent months, reflecting pent-up demand for the second-largest cryptocurrency.

All said, institutional investors have been net sellers of digital assets in four of the past five weeks. The period ending May 24 saw the biggest weekly outflow at $97 million, according to CoinShares data.

Related: Record $141M outflow from Bitcoin products signals institutions are bearish on BTC: CoinShares

“While sentiment has weakened over the last month investors on the whole remain committed given the magnitude of inflows seen this year,” the report says, alluding to the fact that crypto investment funds have raised $5.8 billion this year alone. That’s within 13% of the $6.7 billion inflows registered in all of 2020.

As Cointelegraph reported, crypto holdings among institutional managers reached record levels during the height of the bull market earlier this year. Naturally, many investors have been taking profits following the most recent bout of market volatility.

Nevertheless, the weekly fund flows report suggests market sentiment is gradually improving. Case in point: The Bitcoin Fear & Greed Index has rebounded from extreme lows despite remaining on the bearish side. Meanwhile, Bitcoin’s price pierced above $41,000 on Monday, marking a 12% gain as markets eyed recovery above key technical levels. The price of Ether also recovered 9% to hit $2,566.