The Ethereum price has been under immense pressure in the last few days after its glory when it rose to a three-year high of $1,472. The ETH price is trading at $1,291, which is 12% below this week’s high.
Its market cap has dropped to more than $147 billion. While the total market cap of all cryptocurrencies is tracked by Investing.com, which has unfortunately fallen to more than $932 billion.
What’s Going On
The price of Ethereum and various other digital currencies has dropped this week after the Senate confirmed Janet Yellen as the new Treasury Secretary.
In Yellen’s confirmation hearings, the former Fed chair said that the government needed to act to restrain the use of cryptocurrencies. Therefore, digital currencies have fallen because investors now expect more regulations on crypto wallets.
The price of Ethereum is also falling because of an upcoming Bitcoin ETF. Since BTC and ETH have an association, analysts believe that the former is falling. It is failing for the reason that the SEC is said to most probably approve an ETF. If this happens, it means that investors sell their holdings in the expensive Greyscale Bitcoin Trust, which is seen as being expensive.
In addition, the ETH price is also possibly falling because of the stronger dollar ahead of the Fed interest rate decision. It is evident that Ethereum is in its handle part of the cup and handle pattern. The handle part usually sees some light ahead of an imminent breakout. A good example is what is happening with the price of gold, as stated yesterday.
Technical Standpoint: Ethereum’s Price
The ETH price formed a double-top pattern this week. In most cases, this is usually a signal that the price will rise. It is also at the same level as the 15-day and 25-day exponential moving averages. Therefore, the bullish trend will continue so long as the price is above the ascending trend line. Bearish signals will materialize if it falls below $123.52. Do not miss any of the peaks or dips! You can find us on Telegram and Twitter.
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