• Latest
3 reasons why ethereum price can drop below $3k by the end of 2021

3 reasons why Ethereum price can drop below $3K by the end of 2021

December 13, 2021
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Ethereum

3 reasons why Ethereum price can drop below $3K by the end of 2021

coinnewsdaily by coinnewsdaily
December 13, 2021
in Ethereum, Trading
0
3 reasons why ethereum price can drop below $3k by the end of 2021
209
SHARES
1.6k
VIEWS
Share on FacebookShare on Twitter

Ether (ETH), Ethereum’s native Token, reached an all-time high of roughly $4,867 in early November, only to plummet nearly 20% a month later due to increased profit-taking sentiment.

And today, as the ETH price maintains a critical support level of $4,000, several technical and fundamental signs point to more selloffs.

Related articles

5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022

ETH price rising wedge

To begin, Ether appears to have broken out of a “rising wedge” formation, a bearish reversal pattern formed when the price advances upward inside a range indicated by two ascending — but converging — trendlines.

Simply said, when the Ether price approaches the Wedge’s apex point, it risks breaking below the pattern’s lower trendline, which many technical chartists see as a signal for additional losses. This results in a profit objective that is equal in length to the maximum wedge height measured from the breakout point.

all-time high
ETH/USD weekly price chart featuring Rising Wedge. Source: TradingView

As a result, the downside objective for Ether’s rising wedge comes out to be about $2,800, which is also close to the cryptocurrency’s 50-week moving average (50-week EMA). What happens when the price of Etereum drops?

Bearish divergence

It appears that the pessimistic picture for the Ether market exists despite the fact that it has been able to withstand significant selling pressures experienced elsewhere in the cryptocurrency market in recent weeks – is an Ethereum price drop imminent?

For example, Bitcoin (BTC), the most valuable cryptocurrency by market capitalization, declined by 30% over a month after reaching a record high of $69,000 in early November, a rate significantly larger than the decline in Ether’s price during the same period. As a result, several commentators have referred to Ether as a “hedge” against the drop in the price of Bitcoin — particularly as the price of ETH/BTC has surged to its highest levels in more than three years.

Although it is true that Ether’s current price surge has coincided with a fall in its weekly relative strength index (RSI), this does not negate the fact that there is a growing gap between price and momentum.

Ethereum price drop
ETH/USD weekly price chart featuring divergence between price and RSI. Source: TradingView

Ethereum price drop ahead?

Aside from that, the current ETH price decline coincided with the RSI oscillator falling below 70, which is a typical sell indicator.

Fed “dot plot”

The Federal Reserve’s two-day policy meeting, which begins on December 14, will discuss how quickly it may need to taper its $120 billion per month asset purchase program in order to gain enough flexibility for potential rate hikes next year. More negative signals for Ether are expected ahead of the meeting.

Just last month, the Federal Reserve said that it will begin to reduce its bond-buying program at a rate of $15 billion per month, indicating that the stimulus program would be phased out by June 2022.
While recent market reports have indicated a tighter labor market and continuously rising inflationary pressures, the Fed’s decision to stop tapering “maybe a few months sooner” has alarmed some policymakers.

20 CenBanks hold meetings next week as inflation keeps rising w/final decisions for 2021 due at Fed, ECB, BoJ, BoE which together responsible for half of world econ. CenBank balance sheets have risen in lockstep to ATHs, but now there could be divergence. https://t.co/GgOLGCNbjR pic.twitter.com/mrrhwUVcet

— Holger Zschaepitz (@Schuldensuehner) December 12, 2021

Market anticipations also shifted, with a Financial Times survey of 48 economists forecasting the stimulus to finish by March 2022 and most respondents backing a rate hike in the second quarter.

The period of loose monetary policies that followed March 2020 played a significant role in driving the price of ETH to an all-time high of more than 3,330 percent. As a result, according to some analysts, the increasing possibility of tapering will almost surely put a halt to the present surge, if not the bull market as a whole.

From there I expect a very aggressive approach from the Fed because they’ll recognize we are in a bubble and something extreme needs to be done.

Then we get our multi-year bear market.

— K A L E O (@CryptoKaleo) December 10, 2021

The Federal Reserve is expected to provide an updated policy statement and summary of economic projections (SEP) this week, according to the markets.
A greater number of central bank officials would change the “dot plot” to support an earlier rate hike versus rising inflation as a result of this.

The author’s thoughts and opinions are entirely his or her own and do not necessarily reflect those of CoinNewsDaily. Each investing and trading action entails risk; before making a decision, you should conduct your own research.

Tags: all-time highAveragebankBitcoin PriceBreakoutBullCryptocurrencyETHETH priceEtherEther priceEthereumEthereum priceEthereum price dropIndicatorMomentumpricePullbackRallyRangeRelative strengthRelative strength indexReversalRSITarget
Share83Tweet52
Previous Post

NFT clone Punks: Right or wrong?

Next Post

How Global Economy Might Affect Bitcoin, Ethereum, and Crypto in 2022

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
things you should know before investing in nfts
Alt Coin

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?
Bitcoin

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?
Alt Coin

What is the future of Ethereum (ETH)?

April 22, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum
Alt Coin

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
btc and eth will break all time highs in 2022 — celsius ceo
Bitcoin

BTC and ETH will break all-time highs in 2022 — Celsius CEO

April 21, 2022
Load More
Next Post
how global economy might affect bitcoin, ethereum, and crypto in 2022

How Global Economy Might Affect Bitcoin, Ethereum, and Crypto in 2022

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$28,674.001.25%
  • ethereumEthereum(ETH)$1,809.95-0.53%
  • tetherTether(USDT)$1.00-0.65%
  • binancecoinBNB(BNB)$327.47-3.77%
  • rippleXRP(XRP)$0.438374-0.20%
  • cardanoCardano(ADA)$0.3770847.00%
  • dogecoinDogecoin(DOGE)$0.0769343.24%
  • matic-networkPolygon(MATIC)$1.14-1.72%
  • solanaSolana(SOL)$22.69-1.72%
  • polkadotPolkadot(DOT)$6.27-0.39%
  • shiba-inuShiba Inu(SHIB)$0.0000110.91%
  • tronTRON(TRX)$0.0673660.23%
  • litecoinLitecoin(LTC)$80.93-1.99%
  • daiDai(DAI)$1.000.00%
  • chainlinkChainlink(LINK)$7.563.17%
  • cosmosCosmos Hub(ATOM)$11.79-2.22%
  • leo-tokenLEO Token(LEO)$3.37-3.45%
  • ethereum-classicEthereum Classic(ETC)$20.65-1.20%
  • moneroMonero(XMR)$153.77-1.74%
  • okbOKB(OKB)$44.49-2.91%
  • bitcoin-cashBitcoin Cash(BCH)$131.84-1.06%
  • stellarStellar(XLM)$0.091749-1.56%
  • filecoinFilecoin(FIL)$5.81-3.25%
  • crypto-com-chainCronos(CRO)$0.070968-0.81%
  • vechainVeChain(VET)$0.023194-2.10%
  • algorandAlgorand(ALGO)$0.2239343.22%
  • internet-computerInternet Computer(ICP)$5.22-1.13%
  • eosEOS(EOS)$1.14-3.57%
  • aaveAave(AAVE)$78.15-0.79%
  • elrond-erd-2MultiversX(EGLD)$43.07-3.81%
  • tezosTezos(XTZ)$1.16-2.46%
  • theta-tokenTheta Network(THETA)$1.03-2.20%
  • havvenSynthetix Network(SNX)$2.78-5.39%
  • neoNEO(NEO)$12.09-3.58%
  • paxos-standardPax Dollar(USDP)$1.00-0.47%
  • bitcoin-cash-svBitcoin SV(BSV)$37.401.36%
  • pancakeswap-tokenPancakeSwap(CAKE)$3.80-2.45%
  • huobi-tokenHuobi(HT)$3.97-2.52%
  • dashDash(DASH)$56.62-2.53%
  • makerMaker(MKR)$680.63-0.97%
  • iotaIOTA(MIOTA)$0.213924-2.26%
  • zilliqaZilliqa(ZIL)$0.028209-1.18%
  • zcashZcash(ZEC)$35.75-0.47%
  • basic-attention-tokenBasic Attention(BAT)$0.246819-0.83%
  • nemNEM(XEM)$0.0400970.96%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • qtumQtum(QTUM)$3.17-2.10%
  • compound-governance-tokenCompound(COMP)$44.56-1.15%
  • kusamaKusama(KSM)$33.88-4.34%
  • bitcoin-goldBitcoin Gold(BTG)$16.991.83%
  • yearn-financeyearn.finance(YFI)$8,775.090.33%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • omisegoOMG Network(OMG)$1.76-6.95%
  • golemGolem(GLM)$0.243893-1.23%
  • wavesWaves(WAVES)$2.27-0.27%
  • sushiSushi(SUSHI)$1.15-5.18%
  • ontologyOntology(ONT)$0.231196-1.60%
  • digibyteDigiByte(DGB)$0.009807-1.49%
  • umaUMA(UMA)$2.06-2.61%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%