2023-9-2 07:43 |
Ethereum price retreated sharply after the Securities and Exchange Commission (SEC) delayed its ETF decision for companies like Invesco, Blackrock, and WisdomTree. The ETH coin was trading at $1,640 on Friday, a few points above last month’s low of $1,538.
Ethereum price death crossThe main catalyst for the Ethereum price sell-off was the closely watched decision by the SEC about ETF proposals by key American companies. In its statement, the regulator said that it needed more time to review these applications.
The decision came a day after the SEC suffered a major setback as a judge ruled in favour of Grayscale. In its decision, the judge ruled that the SEC should review Grayscale’s plan to convert its GBTC Trust into an ETF. If this happens, the company will also convert the Grayscale Ethereum Trust (ETHE) into an ETF.
Technically speaking, Ethereum seems to be in trouble. It has formed a bearish flag pattern, which is usually a bearish sign. The flag is characterised by a long flag pole and a flag-like pattern.
Most importantly, Ethereum has formed a death cross pattern. This cross happens when the 50-day and 200-day exponential moving averages (EMA) make a bearish crossover.
In most periods, this pattern is usually a sign that the asset will continue falling in the near term. Most importantly, this price coincides with the lowest level on June 14th. It was also the neckline of the double-top pattern at $2,020.
Ethereum has also moved below the Ichimoku cloud. Therefore, there is a likelihood that the coin will continue slipping in the coming days. If this happens, the next level to watch will be at $1,372, the lowest point on March 10th. This price is ~16% below the current level.
Implications for other altcoinsEthereum’s death cross pattern points to more downside for other altcoins like Stacks, Filecoin, Zcash, Gala, EOS, Render, and Litecoin. In most cases, these coins tend to move in sync with other cryptocurrencies. Therefore, there is a likelihood that these coins will continue falling.
The next important catalyst for Ethereum and other altcoins will be the latest US NFP data. Economists expect these numbers will show that the American economy added fewer jobs in August than in July.
These numbers are important because the Fed has committed to be data-dependent when making its next decision. Most analysts expect the Fed will leave rates unchanged in September and start cutting them in 2024.
Watch here: https://www.youtube.com/embed/ExC3RdKNCjc?feature=oembedThe post Ethereum price death cross points to more Filecoin, EOS, GALA pain appeared first on Invezz.
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