On Jan. 20, Ethereum price rallied above $1,600, reversing its losses from the FTX exchange collapse. However, after hitting a recent high of $1,638, the price plummeted to $1,527. The large take profit transaction rate rose on Jan. 20, according to Santiment experts.
According to analysts at Santiment, the FUD surrounding ETH could feed a bullish narrative for the asset in the medium term. 21% of conversations on social media sites were related to currencies.
They saw a sharp increase in the proportion of profit-taking transactions. At the same time, the social dominance of the second largest cryptocurrency in terms of market capitalization increased. Data from Whale Alert shows that a whale dumped 24,768 ETH worth $38 million into cryptocurrency exchange Coinbase today. In the last three days, whales have moved around $200 million worth of ETH to liquidity pools and crypto exchanges.
What’s next for Ethereum?
Popular cryptocurrency analyst Michael van de Poppe predicted another drop in Ethereum price to around $1,450. The critical support level of $1,550 could lead to some recovery in the price of Ethereum, according to him, but the real bounce for another rally will only come from below this level.
He wrote on Twitter: “Slow grind up a bit and then another swing in the coming days and the correction should be over and we’ll get on with the party.”
Rekt Capital wrote: “$ETH dips to retest the multi-month downtrend black diagonal as support. However, the diagonal must hold as there is a risk of this monthly candle ending as a FOMO wick to the upside with no resistance.”
However, ETH price will remain under pressure ahead of the Federal Reserve’s rate hike decision on Feb. 1 and the release of fourth-quarter GDP statistics on Thursday. At the time of writing, Ethereum is trading at $1,548 and has lost more than five percent in the past 24 hours.
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