Get up to date on the latest analysis and trading tips with our Crypto update week 46
- Ethereum Flashes the Mother of all Buy Signals
- Trust Wallet Token New All-Time High, What’s Next?
- Crypto Market Value Slumps to Lowest Level in Almost 2 Years
Ethereum Flashes the Mother of all Buy Signals
Ethereum’s (ETH) price may be close to bottoming out as several seasonal, cyclical, and technical factors perfectly align. However, only time will tell if we have yet to see the bottom for the Ethereum price as macro headwinds may continue to threaten the crypto ecosystem.
Bitcoin Halving Cycle
Much like the Bitcoin price, the ETH price also follows the 4-year halving cycle. However, ETH, like Bitcoin, usually finds its lowest value a year before the halving event.
In this regard, 2023 will be essential for the faith of the ETH’s long-term logarithmic uptrend.
Ethereum Relative Strength Signal
Ethereum is among the few cryptocurrencies that are outperforming the overall market weakness. Compared to Bitcoin’s price action, ETH is showing relative strength. The divergence between the ETH and Bitcoin prices is undoubtedly a bullish signal.
The relative strength alert is showing up because the ETH price made a higher low while, at the same time, the Bitcoin price has printed a lower low below the mid-June low. This points to the fact that ETH is stronger than Bitcoin.
Long-Term Logarithmic Channel
In the long term, ETH’s price continues to follow its logarithmic channel. ETH’s price always bounced in between, and right now, we’re at the middle band of the channel, which was already rejected back in June.
If the middle band of the channel is respected, there is not much more downside to the ETH price. In this case, the mid-June low of $880 may be the actual bottom.
A weekly close above the critical resistance level at $1,730 and an RSI break above the 50 midpoint could call for a reversal. However, more short-term consolidation is expected above the mid-June low until the macro headwinds settle down.
While we have a lot of factors pointing to the upside of Ethereum in the long term, there is one crucial factor to consider that might undermine this analysis. Bitcoin may still have more downside ahead. In our analysis on Friday, we mentioned that Bitcoin may still have more downside ahead, which can come this month or the next, reaching a bottom somewhere between $10,000-$14,000. If Bitcoin continues to fall, then Ethereum will most likely follow suit.
However, seeing how it is currently outperforming Bitcoin and how the mentioned technical factors point to a bull run, we can expect Ethereum to rebound faster and stronger than BTC after Bitcoin’s downturn.
Trust Wallet Token New All-Time High, What’s Next?
While the broad cryptocurrency market is experiencing FTX-driven headwinds, Trust Wallet Token (TWT) is not only rallying, but it has just made a new all-time high. The cryptocurrency has been following an interesting pattern that can give us further insight into what may lie ahead.
Since its inception, TWT’s price has been repeating a base-rally-drop pattern, which represents special price zones on the price where the token is accumulated. Each base zone was revisited during the next cycle to support the next demand zone or accumulation zone.
If history repeats itself, the TWT price can pull back near $1.20 at the last base zone. If the current weekly candle closes as it is, then we’re going to have a massive rejection candle or a pin bar that is often a reversal signal.
Broadening Wedge Pattern
The whole TWT long-term trend can be “enveloped” within a broadening wedge pattern. This pattern is characterized by the ascending support and resistance trendlines that are broadening over time.
While the TWT price has been expanding on the upside, the move was orderly within the broadening wedge pattern.
Looking forward: The first support area comes near the $1.52 level, which is around two previous key TWT swing highs. However, if the current rally extends higher, it may face a strong resistance near the top of the broadening wedge pattern, which comes around the $3.00 psychological level.
Crypto Market Value Slumps to Lowest Level in Almost 2 Years
The global cryptocurrency market capitalization fell to $831 billion, the lowest level since January 2021 — based on data provided by the crypto analytics platform Coingecko. Fears of a LUNA-style collapse of FTX’s FTT token, which lost over 95% of its value, was the primary catalyst of the sudden crash in the digital asset industry.
Crypto Market Cap
The FTX token crash wiped $2.6 billion from its market cap alone, while the total crypto market value was slashed by over $200 billion since November 8. At the end of the last month, the entire crypto market value surpassed the $1 trillion mark only briefly before the crash commenced.
At the same time, almost $100 billion was wiped out from Bitcoin’s value as the biggest cryptocurrency broke to new 2022 lows. Bitcoin market cap slumped to $304 billion — the lowest it has been since November 2020.
Meanwhile, according to Coingecko, the market cap of all DeFi coins has seen a decrease of around $12 billion to a total value of $35 billion.
The total cryptocurrency market capitalization of altcoins also dropped by around 21% to $529 billion during the same period. The total value of altcoins remains above the June low reading established in the aftermath of the collapse of controversial crypto lender Celsius.
Currently, only Bitcoin and Ethereum are worth more than $100 billion. At the same time, only 7 crypto assets are worth more than $10 billion. By comparison, last month, there were 10 cryptocurrencies valued at more than $10 billion.
Read our latest blogs this week!
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Crypto Market Value Slumps to Lowest Level in Almost 2 Years | And More in This Weeks Crypto Update. was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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