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These 5 Simple Factors Suggest Ethereum’s Rally is”Running on Fumes”

These 5 Simple Factors Suggest Ethereum’s Rally is”Running on Fumes”

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These 5 Simple Factors Behind Ethereum’s Rally is”Running on Fumes”

To justify a bearish sentiment, one analyst recently pointed to five factors that he believes could mean drawback is imminent for the cryptocurrency.
While speaking about Ethereum’s near-term outlook, one analyst pointed to five simple aspects that indicate it may soon find a notable dip.

Ethereum Struggles to Find Stability as Selling Pressure Ramps Up

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Ethereum

Published at Tue, 29 Sep 2020 20:00:18 +0000

  • Ethereum has been largely consolidating throughout the last week as Bitcoin continues lacking decisive directionality
  • The crypto has been subjected to some increased selling pressure during the past couple of hours, which led its cost down to lows of $350 earlier today
  • Advisors do believe that the token could be”running on fumes” at the current moment, suggesting that it may not be able to rally any further
  • Five factors are may be contributing to the weakness, for example multiple recent hacks as well gigantic disadvantage liquidity
  • The confluence of these factors and others may cause it to see further downside in the days, weeks, and even months ahead

“I just can’t seem to shake the feeling that ETH was running on fumes lately. Extremely accelerated DeFi coin market cycles. Kucoin hack. EMN hack. A great deal of liquidity below. Stairstepping upwards PA (typically ends in elevator ). Yet, it holds/randomly rallies. Shortly I think.”

Here are Five Factors Which Point to Underlying ETH Weakness 

Chart via TradingView.

This could indicate that further downside is imminent for the cryptocurrency.
Ethereum is currently attempting to rebound after plunging to lows of $350 earlier today. Even though the initial reaction to this level was bullish, ETH has been unable to maintain its upwards momentum.
Charts from TradingView.

At the time of writing, Ethereum is trading at its current price of $355. This marks a small decline from daily highs of $367, but a bounce from lows of $350.


As such, the token may now be positioned to see further downside in the near-term. This may depend somewhat on Bitcoin, as it’s been firmly directing ETH and other major altcoins.

The confluence of all these factors does indicate that the DeFi hype cycle which helped drive Ethereum to highs of $490 is rapidly coming to an end.
The rebound from these lows at first was intense but has since lost its momentum. This could mean that further downside is imminent in the near-term.

This was a historically important support level, so a break below this could ignite an accelerated decline down towards the support between $315 and $325.
BTC is currently pushing up against its $11,000 resistance, which has been shown to be insurmountable.

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