Skip to content

XTB TRADEBEAT

Is Ethereum set for a reversal?

Summary:

  • Ethereum (ETHUSD on xStation5) could see a decline in the nearest future
  • Chinese watchdog considers cracking down on ICOs
  • Russian energy companies could collaborate with Bitcoin (BTCUSD) miners

The latest hours have been exceptionally calm with regard to the major cryptocurrencies. Even as the price action has been dormant of late, it doesn’t mean that some larger moves could not occur in the nearest future. Ethereum could be the most exposed to a decline among its major peers as the technical view might suggest. The price has already drawn an ominous candlestick (a bearish engulfing) on the H4 interval which could give a rise to a larger pullback going forward. Nevertheless, the price has to break through $360 in order to initiate a more noticeable sell-off. If so, sellers could take the price down even towards $310.

link do file download linkEthereum could be prone to a drop as the price has drawn a bearish engulfing. Source: xStation5

Moving to the news, there was the interesting story from China. At first, let us remind that the Ripple’s price was buoyed by rumors coming from that country yesterday. The same country could destroy nice moods though. Cutting to the chase, Chinese media has reported that regulators have been considering measures designed to crackdown on initial coin offerings (ICOs) being conducted within China’s borders. The watchdog has reportedly considered measures including the imposition of limits on the fundraising targets of ICOs, strengthening of requirements pertaining to information disclosure, and the publishing of investment risk alerts. If those changes are deployed, it could soften interest for cryptocurrencies.

Moreover, the noteworthy news has come from Russia as well, where two of the nation’s major energy corporations, EvroSibEnergo and Gazprom, are to be in discussions with Russian Bitcoin miners who are hoping to strike a deal on cheap power. If so, it would be another relevant step taken towards broadening of Bitcoin’s usage in Russia thus, it could shore up the price of the virtual currency.

link do file download linkBitcoin has broken its local peak but has reversed to some extent afterwards. A possible test of $4460 could provide a buying opportunity with a target at $4750 or beyond. Source: xStation5

Disclaimer

This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.