The price of Ethereum is predicted by some analysts to drop to new lows around $1,600.
Since August 5, the price of ether has risen by 25% from its eight-month low of $2,112. With a 13% increase over the last seven days, the second-largest cryptocurrency by market value has been on an upward trend.
Analysts maintain that there are still downside risks associated with Ether (ETH) despite this success.
I don’t really expect $ETH to break above $2800-2900 but rather remain range bound for August and some of September.
There has been a substancial mean reversion but now price is trading close to supply. Not somewhere I would have high conviction being directly long.
But… pic.twitter.com/2RhKcXpX50
— McKenna (@Crypto_McKenna) August 14, 2024
McKenna was speaking of the price behavior of Ether after the recent decline that was sparked by market maker Jump Trading’s dumping of ETH and concerns about a potential worldwide recession. On August 5, ETH dropped as much as 21% to reach a swing low of $2,112, but it then rose to its current price of $2,651.
The expert claims that the supply congestion zone near $2,800 provided strong resistance to Ether’s surge to $2,750 on August 12. McKenna stated that although the price is “trading close to this supply,” they would not be very persuaded to go long on ETH at these levels.
“But ultimately, the range activity below is for buying value.”
According to two chart patterns—a rising wedge and a 5-month rectangle—ether’s price movement suggested two scenarios, according to fellow expert Peter Brandt. In the first, the price of ETH rose beyond $2,960, offering longs the ideal opportunity to exit.
In the second scenario, the rising wedge was broken in order to maintain the downward trend, and Ether fell to $1,650, the rectangle’s bearish goal.
“Ethereum’s funding rates and price decline point to bearish shift,” said independent trader John Morgan in an Aug. 15 post on X.
Since the start of 2024, Ethereum’s financing rates have frequently been positive, according to data from Glassnode, indicating bullish hopes. But the latest price reduction to $2,100 was followed by a drop in funding rates, indicating a change in the mentality of the market.
Negative financing rates often suggest a preponderance of bearish bets as they show that short positions are paying long holdings.
According to the study, the price of ETH fell from a peak of $3,400 on July 29 to a low of $2,116 on August 5, a decline of 35.5%. Since then, the cost has dropped to $2,552.
On the daily chart, a bear flag indicates that the downtrend is likely to continue despite the rebound.
Bulls in ether are relying on $2,540, the flag’s bottom barrier, to provide support. A negative breakout from the chart pattern would be indicated by a daily candlestick closure below this level, which would estimate a slide to $1,640. The price would drop by 35.82% in such a move from its current level.
The market circumstances continue to favor the downside, as demonstrated by the relative strength index’s (RSI) position around 37.
Institutions not so interested in Bitcoin at $58K, metric shows
Markus Thielen of 10x Research claims that one stablecoin statistic is crucial for predicting institutional interest in Bitcoin, but it isn’t glowing green just yet.
A cryptocurrency expert claims that there is just one leading sign that can be used to determine if institutions are interested in buying Bitcoin at its present price, and it is currently not looking good.
Throughout the last seven days, there has been a noticeable decrease in the seven-day minting ratio, a crucial stablecoin indicator that is frequently regarded as one of the most accurate measures of Bitcoin (BTC) buyer activity.
“Institutions that funneled fiat into crypto through Circle took advantage of the dip below $55,000 but seem less inclined to pursue the market at current levels,” 10x Research head of research Markus Thielen pointed out in his Aug. 16 report.
Institutions may be holding out for further downfall
The price of bitcoin has dropped below $60,000 for the last day.
The indicator basically shows how much US dollars have been swapped for cryptocurrency by tracking the production and issue of new stablecoins.
“Stablecoin inflows are a key sign if fiat dollars are being converted into crypto and then usually moved into coins like BTC or ETH,” Thielen explained to Cointelegraph.
When Bitcoin dropped below $49,472 in early August, things were different.
Thielen emphasized that on August 6, this figure “surged sharply,” hitting $2.7 billion.
Nevertheless, even if Bitcoin is still trading below the crucial $60,000 price threshold, it has subsequently dropped to $1.4 billion.
According to him, the stablecoin Tether “remains active,” while the USD Coin issuer Circle has “notably quiet again.”
According to CoinMarketCap statistics, as of the time of publishing, the price of Bitcoin is $58,149, down 0.35% over the previous day.
As of right now, futures traders see more negative potential for the asset’s price; CoinGlass shows that the long-to-short ratio is 50.88%, slightly in favor of shorts.
As of the time of writing, the Crypto Fear & Greed Index has slid two more points, to a “Fear” score of 27.
According to a new study by Cointelegraph, Bitcoin may continue its bull run for an additional year, even with the recent fall to five-month lows.
Citing a study that BlockScholes and Bybit released, The previous cycles of Bitcoin’s ratios indicate that the bull run will go until the third quarter of 2025.
TON Blockchain expands Web3 reach with Injective and Pyth
Telegram’s Web3 reach has been further expanded by the integration of Injective (INJ) and Pyth Network (PYTH) on the TON blockchain, which reflects the evolution of open finance.
These tactical alliances take advantage of the distinct strengths of each network to advance the DeFi industry.
TON Blockchain partners with Injective and Pyth Network
The TON blockchain’s incorporation with Injective facilitates the bridging and use of INJ coins throughout The Open Network. Users can simultaneously utilize TON in injective decentralized apps (dApps).
2/ The integration will not only enable new asset access for the two communities but also introduce a range of new utilities previously unimaginable.
This includes utilizing $INJ and $TON for new functionalities such as trading, asset tokenization and on-chain lending.
— Injective 🥷 (@injective) August 14, 2024
Users of the Injective protocol can trade a variety of financial instruments, such as perpetual swaps, futures, and synthetic assets, on this decentralized derivatives market. By integrating with TON Blockchain, Injective hopes to broaden its customer base and provide a smooth, safe, and scalable trading environment.
As part of its partnership with TON blockchain, Pyth Network will incorporate the PYTH oracle service into TON. Decentralized apps (dApps) and smart contracts may access real-time, high-quality data feeds from Pyth, a decentralized oracle network.
For their DeFi projects, developers will have access to precise and dependable pricing data thanks to the connection with TON Blockchain. The fact that games operating on the TON blockchain are probably going to get further support makes this useful for blockchain-based creators. Additionally, it will improve the dependability and efficiency of dApps developed on the platform.
Initially, Pyth Network was intended to run on the Solana blockchain. However, it provides market data for cryptocurrency, stocks, FX, and commodities across more than 70 blockchains, including Ethereum, Optimism, Arbitrum, Base, and now TON. The partnership will assist TON in reaching new Web3 users with this suite.
Through the combination of the TON blockchain’s infrastructure with the advantages of Injective and Pyth Networks, among others, users will be able to experience increased security and liquidity for their DeFi endeavors.
TON’s push for decentralized interconnected digital ecosystem
Additionally, it will create new avenues for traders, investors, and developers to profit from DeFi. The smooth interoperability of these networks allows customers to access more financial goods.
They can also benefit from more effective trading and dependable market data. In fact, the TON ecosystem still has a lot of room to expand and contribute to a digital economy that is more decentralized and linked.
Consequently, the fact that the TON blockchain’s total value locked (TVL) has increased by 4226% so far in 2024 is not shocking. As more users deposit assets into The Open Network, this growth indicates rising interest and investment.
Pantera Capital made investments in the TON blockchain over its growth trajectory. The unknown amount was invested by the startup capital company as TON gains popularity within the large Telegram user base.
In addition, Tether, the USDT issuer, declared in April that it will be working with TON. The coalition, which includes Oobit, provides financial solutions to the unbanked population by facilitating cryptocurrency transactions globally. Through decentralized technology, our alliance creates a borderless financial system that enhances accessibility and transaction efficiency.
