Ethereum on Brink Of 40% Crash – ETH Price May Plunge To 3-Digit in Coming Weeks
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Cryptocurrencies retain the bearish mood into the weekend after a turbulent week, with both Bitcoin and Ethereum slumping.
On Saturday, Bitcoin fell beneath $17,000 once more after another development of the troubled FTX surfaced online.
Today’s decline in Ethereum’s price kept the currency below $1,300. . Following a carnage week, the markets were given a break by the fleeting glimmer of hope.
The future direction of Ethereum (ETH) depends on it holding a crucial support level, according to Mike McGlone, senior macro strategist at Bloomberg Intelligence.
McGlone said that the second-largest cryptocurrency may drop to a two-year low of roughly $500 if Ethereum’s support level above $1,000 slumps.
Ethereum
According to him, the Ethereum support at $1,000 might be an important turning point since it represents more of the financial-markets revolution taking place in cryptocurrencies, which is similar to the introduction of futures and exchange-traded funds.
In contrast to Bitcoin, the chart shows the No. 2 cryptocurrency’s consistent rising trend and also the absence of support after $1,000.
McGlone also said that Ethereum’s switch to a proof-of-stake consensus algorithm has had a positive influence on Ethereum.
“Shifting to proof of stake amid the energy crisis, Ethereum as the leading platform for crypto dollars has provided some relative buoyancy.â€
Bitcoin
Looking at Bitcoin (BTC), McGlone said that for a bullish scenario to happen, the $20,000 resistance level needs to turn into support.
“Sustaining above $20,000 should be necessary to affirm recovery at levels we expect will eventually return Bitcoin to an elongated upward trajectory. Relapsing toward good support in the $10,000 – $12,000 area is the downside risk.â€
FTX saga continues
Sam Bankman-Fried, the founder of FTX, made a long apology on Twitter on Thursday, outlining several problems at the company and announcing the closure of Alameda Research, a sister company. Later, FTX allowed for restricted withdrawals, which led to consumers withdrawing millions from the exchange