{"id":437054,"date":"2020-09-02T12:57:57","date_gmt":"2020-09-02T12:57:57","guid":{"rendered":"https:\/\/wncen.com\/?p=437054"},"modified":"2024-06-11T14:15:52","modified_gmt":"2024-06-11T14:15:52","slug":"ethereum-winning-streak-ends-with-12-plunge-crash-ahead","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/ethereum-winning-streak-ends-with-12-plunge-crash-ahead\/","title":{"rendered":"Ethereum Winning Streak Ends with 12% Plunge; Crash Ahead?"},"content":{"rendered":"

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

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<\/a> that started on August 28.<\/p>\n

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.<\/p>\n

Ethereum Overbought<\/h2>\n

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.<\/p>\n

\"ethereum,<\/p>\n

ETHUSD defends its bullish bias following a downside rejection at $420. Source: TradingView.com<\/a><\/pre>\n
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<\/a> was brief enough to alert buyers. As a result, the pair quickly rebounded back towards $450.<\/p>\n
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.<\/p>\n
“I\u2019ve got $430s & $390s as HTF support,” he said. “[They are] the weekly consolidation that preceded the final leg up and monthly breakout. Directional bias is bullish as long as the overall structure is intact.”<\/p><\/blockquote>\n
US Dollar Rebounds<\/h2>\n
Another market analyst, Cole Garner, pitted the Ethereum price correction against a rebound in the US dollar index on Wednesday. He illustrated an inverse correlation.<\/p>\n
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$ETH<\/a> is inversely correlated to the $DXY<\/a><\/p>\n
Wouldn't be surprised to see this play out pic.twitter.com\/AEhWghabj3<\/a><\/p>\n
— Cole Garner (@ColeGarnersTake) September 2, 2020<\/a><\/p><\/blockquote>\n