• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Technical analysis

Ethereum Winning Streak Ends with 12% Plunge; Crash Ahead?

Yashu Gola by Yashu Gola
6 months ago
in Technical analysis, Ethereum
Reading Time: 2min read
bitcoin btcusd distribution

Concept of stressed busibnessman at work

Advertisement

Ethereum (Symbol: ETHUSD) snapped its five-day winning streak, falling sharply as on cues from a broader correction sentiment across the cryptocurrency market.

The second-largest crypto by market cap slipped by more than 12 percent from its Wednesday top of $481.20. So it appears, ETH/USD plunged as traders decided to secure their short-term profits from the pair’s 27 percent bull run that started on August 28.

It is because of the cryptocurrencies that too fell in tandem with Ethereum. The benchmark crypto Bitcoin, for instance, slipped by as much as 6.61 percent to an intraday low at $11,160. Other top tokens, including XRP, Chainlink, Bitcoin Cash, and Litecoin, too, plunged similarly.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Ethereum Overbought

Indicators pointed to an overbought sentiment. All these assets, including Ethereum, were trading well above their actual valuations, says the readings of their Relative Strength Indicator(s). ETH/USD’s daily RSI, for instance, was at 71, one point above the standard 70, before its downside correction began.

ethereum, ethusd, ethusdt, cryptocurrency, crypto

ETHUSD defends its bullish bias following a downside rejection at $420. Source: TradingView.com

Bulls, nevertheless, caught the falling price at $420. That is visible in the chart above: The daily candle is forming a long wick to the downside, illustrating that the ETH/USD dump was brief enough to alert buyers. As a result, the pair quickly rebounded back towards $450.

The same analogy led market analyst Cred to state that the ETH/USD’s downside correction on yesterday did not hurt its medium-term bullish bias.

“I’ve got $430s & $390s as HTF support,” he said. “[They are] the weekly consolidation that preceded the final leg up and monthly breakout. Directional bias is bullish as long as the overall structure is intact.”

US Dollar Rebounds

Another market analyst, Cole Garner, pitted the Ethereum price correction against a rebound in the US dollar index on Wednesday. He illustrated an inverse correlation.

$ETH is inversely correlated to the $DXY

Wouldn't be surprised to see this play out pic.twitter.com/AEhWghabj3

— Cole Garner (@ColeGarnerBTC) September 2, 2020

The greenback started recovering from its two-year low on Tuesday, creating some headwinds for safe-haven assets, including Bitcoin and gold. While a rising dollar may have reduced the appeal of the benchmark cryptocurrency, it is its [own] positive correlation with Ethereum that may have triggered the latter down this Tuesday.

That is why Ethereum appeared to have been moving in the opposite direction of the US dollar index.

But, at the same time, the medium-term outlook for the US dollar remained bearish. It is because investors anticipated a long period of higher inflation, lower interest rates, and quantitative easing as global central banks attempt to aid economies through the COVID-19 pandemic.

That further pointed at a potential bullish continuation for both Bitcoin and Ethereum.

“Ethereum’s next levels are $550-600,” said one trader.

Tags: cryptocryptocurrencyethereumethusdETHUSDT
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Posts

Ethereum

Ethereum Gains Bearish Momentum, Why ETH Could Test $1,280

16 hours ago
Bitcoin

Why Bitcoin Price Could Extend Its Decline To $41K, 100 SMA Holds The Key

18 hours ago
bitcoin bid side macro

Bid Side In Bitcoin Disappears Amidst Jittering “Macro Environment”

2 days ago
bitcoin dollar

Dollar, Divergences, & More: Here’s Why Bitcoin Could Soon Bounce

2 days ago
Binance Coin (BNB)

Charted: Binance Coin (BNB) Steadies Above $200, Why It Could Rally Again

3 days ago
Ethereum

TA: Why Ethereum Below $1,400 Could Spark A Sharp Decline

3 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

What Will Happen to Oil Production and Distribution in 2021, and How Can You Make a Profit on It

February 28, 2021

Bitcoin Gaming Platform FreeBitco.in Acquires 3.75 Billion FUN Tokens

February 26, 2021

60-Minute IFO, 187 Times Over-Raised, 40 Times the Price, 98 Million US Dollar Marketcap: Berry Data Has Become a Bright Star on BSC

February 26, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.