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Ethereum price risks dropping to $2K on ‘bear flag’ setup

Scorpio

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THIS IS FROM JAN 31, OR 2 WKS AGO​

Ethereum price risks dropping to $2K on ‘bear flag’ setup​

The bearish outlook appears against the backdrop of the Federal Reserve’s tightening policies.


Ethereum price risks dropping to $2K on ‘bear flag’ setup

ANALYSIS

Ethereum’s native token, Ether (ETH), will extend its 30% slump this year to the lowest price level since July 2021, if a textbook technical indicator plays out.

Ether chart paints bearish pattern​

ETH’s price fell to its six-month low of $2,159 on Jan. 24, 2022, only to rebound sharply to as high as $2,724 days later. However, this created a so-called “bear flag” chart pattern that suggests the price could drop to $2,000 or a 17% drop from current levels.
A bear flag appears when the price consolidates higher after a strong momentum downward but eventually moves further lower after breaking out of the upward range. In doing so, the price tends to drop by as much as the length of the previous decline, called a “flagpole.”
ae85e503-2e3a-4eb6-a292-e0f1e774aaf8.png
ETH/USD daily price chart featuring bear flag setup. Source: TradingView
In Ether’s case, the flagpole’s height comes to be over $850. That roughly shifts its bear flag price target toward $2,000. Earlier this year, another bear flag formation had resulted in a similar decline, as shown in the chart above.

Rate hikes ahead​

The prospect of Ether hitting $2,000 in the coming months increases further due to Bitcoin (BTC) and its vulnerability to macroeconomic trends.
Notably, the positive correlation efficiency between the Ethereum token and Bitcoin has been 0.92 in the past 30 days, according to data from CryptoWatch. In other words, Ether tailed the BTC price trends with a 92% accuracy in January 2022.
60dae252-dcc0-4f22-9ff1-334af60ce501.png
Bitcoin’s correlation with altcoins in the past 30 days. Source: CryptoWatch
At the core of the said bearish outlook is the Federal Reserve’s dovish policy. In detail, the United States central bank’s decision to completely withdraw its $120-billion-a-month COVID-19 stimulus program by early March and to increase benchmark rates from their near-zero levels after that have started hurting the so-called pandemic winners, including tech stocks, gold and Bitcoin.
Paul Krugman, a Nobel prize-winning economist and a long-term skeptic of cryptocurrencies, envisioned a Bitcoin price crash in 2022, noting that it had “disturbing echoes of the subprime crash” during the 2008 economic crisis.
“If you ask me, regulators have made the same mistake they made on subprime: They failed to protect the public against financial products nobody understood, and many vulnerable families may end up paying the price,” he warned.

$2,000 first for ETH price?​

As Ether looks bearish under the shadows of Bitcoin, many analysts anticipate Ethereum’s token to resume its climb later in 2022, owing to its involvement in the emerging decentralized finance and nonfungible token sectors.
For instance, billionaire investor Mark Cuban noted last year that Ether could surpass Bitcoin in terms of growth.
I like Eth/L2s more, and there is no point arguing the Trilemma, halving or inflation. I like it more because I can see an unlimited number of applications that will change the biz/consumer world forever. And to use them you need to buy Eth/L2. BTC doesn't have that demand pull
— Mark Cuban (@mcuban) October 17, 2021
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, predicted Ether to hit $5,000 in 2022 despite the Fed’s tapering policies. The veteran analyst called the central bank’s rate hike plans a “win-win scenario” for Bitcoin and Ether against the U.S.’s four-decade high inflation.
Related: Ethereum hash rate scores new ATH as PoS migration underway
Nonetheless, McGlone anticipated Ether to hit $2,000 first before continuing its move higher. He noted:
“A top force to stop central-bank restraint is a decline in the stock market, with implications for cryptos [...] Price supports exiting 2021 of about $30,000 for Bitcoin and $2,000 for Ethereum appear solid.”



 

Scorpio

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here is another version from today:


Analyst say Ethereum price could fall to $1,700 if the current climate prevails​

Traders warn that ETH price could fall to $1,700, triggering a “turbo nuke” in altcoins and altering the market structure of a struggling bull market.


Analyst say Ethereum price could fall to $1,700 if the current climate prevails

MARKET UPDATE

Bitcoin (BTC) and Ether (ETH) price are still being hard hit by the current wave of volatility and this is leading traders to go back to the drawing board and readjust their short-term expectations. On Feb.17, Bitcoin price briefly dipped below $40,000 and Ether failed to hold support at $2,900, raises the chance of a drop to $2,500.
Data from Cointelegraph Markets Pro and TradingView shows that after hovering near the $2,900 support level through the morning trading hours, Ether was hit with a wave of selling that dropped it to an intraday low of $2,752.
8322c9bc-b222-4960-a1b6-085072418b82.png
ETH/USDT 1-day chart. Source: TradingView
Here’s a look at what analysts are saying about the price drop for Ether and whether or not more downside is expected as global tensions continue to rise.

Ethereum's next stop could be $1,700​

A general overview of the current outlook for Ether was provided by crypto trader and pseudonymous Twitter user ‘Crypto Tony’, who posted the following chart discussing the areas of support and resistance to keep an eye on.
0eab6e21-46f1-4d76-bb15-fe8f1bf4ef52.jpg
ETH/USD 1-day chart. Source: Twitter
Crypto Tony said,
“$3,900 remains the most pivotal area for me and if we flip that, well I believe the low is in... Reject from it or fail to even reach it and we head to my main target of $1,700.”

Price is at a "super trend" resistance level​

A more bullish take on Friday’s price action was offered by market analyst and pseudonymous Twitter user ‘IncomeSharks’, who posted the following chart indicating that Ether is now at a significant resistance zone.
4fada3f4-8f0f-4de4-8f42-3815694b1352.jpg
ETH/USD 4-hour chart. Source: Twitter
According to the analyst,
“Ether right at the supertrend resistance. Since it's flat it usually has a higher chance of breaking upwards and flipping bullish. If it does flip bullish I think $2,900 to $3,000 would be next.”
Related: U.S. inflation breaks 40-year record: Can Bitcoin serve as a hedge asset?

The macro trend projects further downside​

Insight into what could happen to Ether and the wider altcoin market, should it fail to hold this current level, was offered by trader and pseudonymous Twitter user Pentoshi.
bea9c55f-c55b-4858-9f14-f4723b2533ef.png
ETH/USD 1-day chart. Source: Twitter
Pentoshi said,
“I will take note that there is local strength here since it held its lows but overall still lower highs. Trend is down. *IF* those lows break *THEN* *MOST* altcoins turbo nuke.”
The overall cryptocurrency market cap now stands at $1.899 trillion and Bitcoin’s dominance rate is 41.4%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision

 

madhu

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The problem with all these charting patterns is that it translates into mob illusion and everyone is trying to gain an edge by trading on ether, If everyone is going to use these charting patterns who is going to take the other side of the trade? Also all these are manipulated by circular investing, driving up the price without really discovering the true value
 

TAEZZAR

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I don't shiv a git. PM's are solid !! All that "cloud $$ is 1' & 0's that have no value & can be hacked.
If ya don't hold it, ya don't own it !:gracious::gold::gold::gold::gold::gold:
 
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anywoundedduck

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Negative ruling on XRP could take Ether down.
All cryptos are being threatened by US and Canada administration's, with seizure of accounts, right and left, for the last few weeks.
If you don't hold it, you don't own it, as we have been saying for the last 20 years.
 

EO 11110

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correlation == crypto is a 5x leveraged vehicle for playing zero earnings tech stocks
 

EO 11110

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Negative ruling on XRP could take Ether down.
All cryptos are being threatened by US and Canada administration's, with seizure of accounts, right and left, for the last few weeks.
If you don't hold it, you don't own it, as we have been saying for the last 20 years.

that quote reminds me of ponce. that crazy cuban was right about runs on toilet paper. a seer
 

Someone_else

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that crazy cuban was right about runs on toilet paper. a seer
Again, I recommend reading "The Alpha Strategy" by Adam John Pugsley. The book has good details on buying things now that you will need later, using today's dollars. Can it get any simpler?!
 
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EO 11110

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Again, I recommend reading "The Alpha Strategy" by Adam Pugsley. The book has good details on buying things now that you will need later, using today's dollars. Can it get any simpler?!

i'll have to work out some barter deals. beanie-weenies for tp
 

Scorpio

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free version of the book, pdf
 

EO 11110

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the int'l banker's central banks are issuing codes as money. these are franchises of frbny

they decided now is the right time for the 800 pound gorilla to enter the ring. i fear for my crypto countrymen

ironic that this website has become quasi digital gold is money at the time that might end up going down in history as the peak of the mania

i, on the other hand, am about to buy into a different peak - buying a piece of land to speculate on. somebody stop me


Jamaica Joins The Bahamas And The Eastern Caribbean In Rolling Out Its Central Bank Digital Currency​

 
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