Why Ethereum Could Trade At $500 If These Conditions Are Met
29 Giugno 2022 - 4:46PM
NEWSBTC
Ethereum has returned to the red as it was rejected as a major area
of resistance. The cryptocurrency is bleeding out and records the
second-worst performance in the crypto top 10 by market
capitalization with a 10% loss in the last 24 hours. Solana (SOL)
holds the number one position with a 13% loss. Related Reading
| TA: Ethereum Topside Bias Vulnerable If It Continues To
Struggle Below $1.2K The general sentiment in the market seems to
be at an all-time low, but there is room for it to enter into a
capitulation state, according to Daniel Cheung, Co-Founder at
Pangea Fund Management. ETH’s price could succumb to macroeconomic
conditions. Cheung claims the second crypto by market cap is
correlated with traditional equities, in particular with the Nasdaq
100 via the Invesco QQQ Exchange Traded Fund (ETF). In that sense,
the crypto market has become susceptible to stock price movement
making it “a market regime where it is all just one big Macro
trade”. The analysis claims that Ethereum could see a 40% drop from
its current levels as the Nasdaq 100 has “a lot of room to fall”.
This index has only experienced a 30% crash, and historically it
has dropped by as much as 45%. The potential upcoming crash in the
Nasdaq 100 (tech stocks), and in Ethereum as a consequence, will be
driven by a poor earnings season, Cheung believes. This is one of
the conditions that could force ETH’s price to break below $1,000
and into $500 for the first time since 2020. The analysis claims
that the traditional market is misreading the U.S. Federal Reserve
(Fed). The institution is attempting to slow down inflation,
currently at a 40-year-old high as measured by the Consumer Price
Index (CPI), by increasing interest rates and unloading its balance
sheet into the market. Will Ethereum Follow U.S. Stocks To The
Downside? The objective is to reduce consumer demand, and reduce
prices across global markets, in hopes that this will bring down
inflation. Market participants seem to be underestimating the Fed,
and thus could be unprepared for the consequences, Cheung argues:
(…) there will likely be more iterations of lower earnings
revisions that follow over the coming months especially given this
is a market regime that very few investors have experienced This
will bring equities lower and crypto to follow with it more
downside to come. In fact, the analysis argues that the U.S. could
already be in an economic recession. This could bolster the Fed to
put more pressure on the market, having an even worse impact on
Ethereum and other cryptocurrencies. Related Reading
| Bankman-Fried Is Looking At “Secretly insolvent” Small
Exchanges & Crypto Miners This could be confirmed today with
the report on GDP growth to be posted by U.S. financial entities.
If this report spells economic slowdown, adding more downside
pressure and further impacting companies’ earnings season, Cheung
claims while adding: If the GDP print + CPI print + FOMC commentary
all play out according to plan – we will likely be at a triple
digit $ETH price once again. However, the land mine that investors
would have to overcome would still not be over as 2Q22 company
earnings would be just on the horizon.
Grafico Azioni Ethereum (COIN:ETHUSD)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Ethereum (COIN:ETHUSD)
Storico
Da Apr 2023 a Apr 2024