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It’s “Hard to be Bearish” on Ethereum as Key Supports Hold: Analyst

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  • Ethereum has dropped lower over the past 24 hours after peaking just shy of $400.
  • The cryptocurrency currently trades at $382 and is down a mere 0.5% in the past 24 hours.
  • Despite the drop from the local highs, analysts remain bullish on the asset.
  • One analyst says that he finds it hard “not to be bullish” as $360-370 holds.
  • $360-370 has acted as an important horizontal level for the coin over recent weeks.
  • Namely, it marked the highs of two key rallies in late September, which resulted in reversals towards $330.

Ethereum Set to Continue Higher, Analysts Say

Ethereum has slipped lower over the past few hours from its local highs around $395. The coin currently trades for $382, not too far from those highs but still down by a few percent.

Despite this rejection just shy of the pivotal $400 resistance, analysts remain optimistic. One crypto-asset trader recently noted that with the cryptocurrency holding above critical supports, price action is healthy

“Think the market is looking to make a full recovery if price get flip $380 into support but that said current price action is looking very bullish and its great to have flipped $360. The chance of retesting $280 gets less and less each day we hold above these levels… $ETH / USD Still finding it hard not to be bullish… Price would have to break below $360 for any real shift in momentum to the downside, healthy looking PA.”

Chart of ETH's price action over the past few weeks (since end of July) with analysis by crypto trader Cactus (@TheCryptoCactus on Twitter)
Source: ETHUSD from TradingView.com

Others are also optimistic about Ethereum on a macro basis.

One trader noted that as long as Ethereum holds the prices in the vicinity of $350, it is set to double towards $720 in the coming months. $350 has long been an important level for ETH, having acted as a launchpad for the coin in 2017 and in the middle of 2018 during a dead cat bounce.

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Chart of ETH's price action over the past few years with a Renko candle analysis by crypto trader Cold Blooded Shiller (ColdBloodShill on Twitter).
Source: ETHUSD from TradingView.com

All Eyes on Bitcoin

Supporting upside in the price of Ethereum is an optimistic outlook for Bitcoin.

Tyler Winklevoss, a co-founder of Gemini, recently said that with the U.S. government pursuing another stimulus package, Bitcoin is making increasing sense: 

“Stonks love nothing more than wen the money printer goes brrrr like an A-10 warthog. It’s full-fledged addiction that’s not going to end until it has to. When that will happen is hard to predict, but what’s certain is that #Bitcoin will b your only refuge.”

Analysts expect further stimulus to suppress the U.S. dollar, which should boost alternative assets like gold and Bitcoin.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
It's "Hard to be Bearish" on Ethereum as Key Supports Hold: Analyst





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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.