Ethereum price bulls get some relief as Celsius starts re-payments


  • ETH price bounces back from brief fall below $1,000 as Celsius Network announces re-payment start.
  • Ethereum price has yet to breach the Elliott Wave trend channel.
  • A breach at $366.80 will invalidate the bullish macro count.

UPDATE: Ethereum price is trending slightly higher on Tuesday after closing Monday with a Doji candlestick, indicating the start of a potential consolidation period. ETH bulls seeming have been able to finally stabilize somewhat the price action, which had been totally dominated by bears for the past days, weeks, and months. It is still early to tell if this relief rally, which has been based at the big psychological $1,000 support, has some legs or if it will just turn into an indecision period before bears go back in business. News that Celsius Network has started re-paying some of its debts, sending back $10 million in DAI to Compound Finance, and their open commitment to working with regulators in order to stabilize liquidity and operations could help the entire cryptocurrency market to gain some footing.

Ethereum price lures the everyday investor to implement a dollar-cost average investing strategy. The invalidation level for Ethereum price, however, is still wide and less favorable than Bitcoins'.

Ethereum price will be tough to manage

Ethereum price is in the middle of two complex scenarios which will yield a level of unpredictability for the future smart contract's token. Institutional players have been scalping Ethereum with multi-million dollar positions. Venture capitalist firm Three Arrows Capital swung a 33 million dollar Ethereum position during the 3rd weekend of June. The firm was able to capitalize on an arbitrage imbalance as the market value between Ethereum fell below the staked Ethereum on the Curve DAO's Liquidity pool. 

eth 6/20/22

@Mhonkasalo 

Ethereum price began a disastrous fall from a high of $1,118 on Friday to $888 by Saturday afternoon as millions of dollars in ETH were witnessed on the blockchain being swapped for STETH on the Curve Dao's network. The shocking market discrepancy was quickly resolved as Institutional and retail investors bought the discounted Ethereum price. ETH price currently trades at $1,108 on the first day of summer. 

The technicals are bullish but risky 

From a technical standpoint, the bulls have printed a very bullish-looking hammer on the 2-day chart. This classic bullish signal is accompanied by a significant amount of volume, which should yield some upside potential into the $1,400 zone for a $27% increase in value. Still, the 200-Week Simple Moving Average lies just above today's market price at $1,200 and should be viewed as a critical level likely to prompt significant bullish resistance for the Ethereum price to hurdle.

tm/eth/6/21/22

ETH/USDT 2-Day Chart

Unlike Bitcoin's recent price action, the Elliott Wave trend channel has not been breached. Ethereum's technicals suggest a $400 target is on the cards for Ethereum price but could happen as late as 2023 under Elliott Wave's rule of alternation. A complex fourth wave structure will likely ensue (contrasting with the 'simple' structure of the previous corrective wave) for the smart contracts token, bringing considerable market uncertainty.

Long-term Investors aiming to dollar cost average a discounted Ethereum price should be aware of the medial phase in which the smart contract token presents itself. The bullish macro invalidation level is 66% below today's market value at $366.80. If the $366.80 level is breached, expect an Armageddon-style decline to $110, resulting in a 90% decrease from the current Ethereum price.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP Price Outlook: A breakout or significant price movement may be imminent for Ripple’s token

XRP Price Outlook: A breakout or significant price movement may be imminent for Ripple’s token

Ripple price has been range-bound for a while, with token holders patiently holding as the ecosystem contended against the US SEC. As per a recent report, the payments token’s price has been stuck below $0.50, failing to breach key resistance levels.

More Ripple News

Runes token standard diminishes BRC-20 hype, thwarts Ordinals engagement a day after launch

Runes token standard diminishes BRC-20 hype, thwarts Ordinals engagement a day after launch

Bitcoin token standards have been a notable theme of late, with Ordinals and BRC-20 making headlines in the first quarter of 2024. However, there is a new player in the works, Runes, which could be the next narrative as the ecosystem continues to evolve.

More Runes News

Avalanche Price Prediction: AVAX primed for gains as altcoin nails its 37% measured move target

Avalanche Price Prediction: AVAX primed for gains as altcoin nails its 37% measured move target

Avalanche (AVAX) price, like most altcoins, is showing strength following the fourth Bitcoin (BTC) halving. The landmark event, which has inspired positive market sentiment, has capital spilling over into other cryptocurrencies, including AVAX.

More Avalanche News

Meme coin madness returns after Bitcoin halving concludes

Meme coin madness returns after Bitcoin halving concludes

Meme coins are on a tear, with some posting double-digit gains despite characteristic weekend lull. BONK, FLOKI, PEPE, SHIB are sector’s top gainers while DOGE tries to catch up after Dogecoin Day. Solana’s Bonk Inu and Myro are top chain performers after SOL price’s 6% gains.

More Meme Coins News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP