Ethereum price prediction: double top model presents new risks

The price of Ethereum (ETH / USD) retreated on Friday as part of the general cryptocurrency settlement. The cryptocurrency fell more than 7.7% to trade at $ 2,634. This drop brought its total market capitalization to over $ 304 billion.

ETH price table

Ethereum withdrawals

Ether is the second largest cryptocurrency in the world after Bitcoin. The Ethereum network helps developers build decentralized applications such as those in DeFi sectors and non-fungible tokens (NFTs).

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In fact, Ethereum had been used to build most of the larger DeFi platforms like Aave, Maker, and Uniswap. In total, according to DeFi Pulse, the largest DeFi platforms have more than $ 64 billion in total locked-in value.

Recently, due to Ethereum congestion and high gas charges, many developers have started to look to other competing platforms such as Polkadot, Solana, and Binance Chain.

The price of ETH fell today after Elon Musk sent a tweet suggesting he had fallen in love with Bitcoin, a cryptocurrency in which Tesla has invested. Bitcoin fell over 5% after the tweet, while the total market cap of all cryptocurrencies was tracked by CoinMarketCap fell 7.67% to over $ 1.64 trillion. This provides more evidence that Bitcoin and other altcoins have a close correlation.

Still, some analysts believe the utility value of Ethereum and the continued updates to move it to a proof-of-stake concept will help. They also cite the continued increase in transactions as a catalyst for the price recovery.

The price of Ethereum also fell ahead of the latest non-farm payroll figures in the United States. Data released Thursday showed the number of Americans filing unemployment claims fell to less than 400,000 for the first time since the start of the pandemic. . And analysts believe the unemployment rate will continue to fall, so it’s possible the Fed will start to get aggressive, which is a bad thing for Ether and other cryptocurrencies.

Ethereum Price Prediction

Ethereum priceEthereum priceEthereum Price Table

The four-hour chart shows the price of ether jumped to $ 2,885 on Thursday, then retraced. This is notable as the price approached the previous high at $ 2,915. As such, the chart clearly shows that the cryptocurrency has formed a double top pattern with the neckline at $ 2,183. It also broke 25 and 50 day exponential moving averages (EMAs).

Therefore, not finding any buyers above $ 2,915 means the token could continue to move lower as the bears target the neck line at $ 2,183.

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