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Ethereum Price Prediction as $210M Liquidates in Market Volatility – Where Does ETH Go Now?

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Ethereum Price Prediction as $210M Liquidates in Market Volatility – Where Does ETH Go Now?

Ether Coin. Source: Adobe

Prices for major cryptocurrencies fell on Friday amid concerns over the health of crypto bank Silvergate, which has seen a rapid exodus of major customers in recent days. Bitcoin (BTC) was last trading in the mid-$22,000s, down around 4.5% on the day. Ether (ETH), the token that powers the Ethereum blockchain, last fell around 4.7% on the day and was trading in the upper $1,500s. The total cryptocurrency market cap was around $986 billion, down just over 4.4% or around $43 billion on the day.

The fall in prices has led to an upsurge in trader liquidations. According to crypto derivatives data analytics website coinglass.com, long positions in the crypto futures market worth more than $210 million were closed on 2n/a Of March. This is the highest in almost a month.

Some analysts said the release of some bitcoin from Mt Gox to victims of the exchange hack many years ago may have added to the selling pressure. Either way, Bitcoin is now more than 11% below its recent highs above $25,000, while Ethereum is closer to 10% down from its recent highs in the mid-$1,700s. . The crypto appears to have caught up with the recent decline in US equities on concerns over further interest rate tightening from the Fed following recent strong data.

Can a Stock Market Rally Support Crypto?

In fairness, US stock prices are rising this Friday, helping to put a floor under crypto prices, but major indices are still well below recent highs. Macro analysts said traders grew more bullish on Friday because the Fed gave no indication it wanted to raise interest rates above 5.5%, the level currently priced in by the Fed. market. Meanwhile, strong data, including the latest monthly ISM services report, reduces the risk of a US recession later this year.

If the rally in US equities can continue, that bodes well for equities. And it could continue, according to recent positive technical developments in the S&P 500. The index has recently found strong support at its 200-day simple moving average (SMA) and a key long-term downtrend, indicating that the bull is positive. since last year. low may still have other legs to run.

Price Prediction – What Will Be Next For ETH?

The positive momentum in stocks may well act as a tailwind for Ether in the days and weeks ahead. The same goes for upcoming upgrades to the Ethereum network. Later this month, Ethereum’s last major public testnet will go through the Shapella hard fork, paving the way for a mainnet upgrade next month. The main feature of the upcoming update is that staked ETH withdrawals will finally be allowed.

While some think this could lead to some selling pressure in the short term as ETH investors profit from their ETH and ETH withdrawn income, most suspect it will be a positive long-term driver. Flexible withdrawals should attract more ETH investors to staking, which should result in a greater proportion of supply being locked in, potentially increasing scarcity and prices.

These engines may be able to lift Ether in the coming weeks, but in the immediate future, the risk of further selling pressure remains. Indeed, Ether’s latest decline saw it break south of an ongoing uptrend since the start of the year. Near-term risks remain tilted towards a potential test of the February lows in the $1,460 area.

ETH alternatives to consider

ETH could do well in the coming months. However, traders looking for quick gains might consider other high-potential tokens, such as those sold in presale by promising promising crypto projects. We’ve reviewed some of the top contenders in this list of the 15 best cryptocurrencies for 2023, as analyzed by the Crypto news Industry Discussion Team.

The list is updated weekly with new altcoins and ICO projects.

See the 15 cryptocurrencies

Disclaimer: The Industry Talk section features information from crypto industry players and is not part of the editorial content of Cryptonews.com.


Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.