Ethereum News Today – Headlines for August 22

UK-based Crypto Trading Platform is Launches Ethereum Futures Contracts
  • Ethereum could lose up to 50% of its value in the next 12 months
  • ETH’s long term outlook only supports a 30% annual appreciation or growth
  • Sitting slightly above the $400 mark ETH/USD is set to dip further

Ethereum News Today – according to digital currency analyst Timothy Peterson, the price of Ethereum could lose 50% of its value within the coming 12 months. The analyst claims that Ethereum’s long term growth rate supports an annual appreciation of just 30%. The charts show that Ethereum has found it difficult to keep up with Bitcoin after BTC price pumped above the $12k mark once more.

Currently above the $400 mark, ETH’s price is set to dip even further. Peterson is an employee of Cane Island Alternative Advisors. He backed his claims that ETH/USD could fall by 50% in the coming 12 months by sharing an analysis via twitter. In his post, Peterson remarked that the long-term growth rate of Ethereum supports an annual price appreciation of just 30%.

The Price of Ethereum is Higher Than its Metcalfe Value

In his tweet, Peterson posted four different charts. The first chart indicated that Ether’s price has deviated from its Metcalfe Value to an extent. Looking ar the chart he shared, we can see that Ethereum’s Metcalfe value is $250. This value is closer to a previous estimate of about $246 issued by the Cane Island team via a tweet as well.

Meanwhile, a quick look at Ethereum’s daily chart shows that the ETH/USD pair has had a difficult time trying to break the $450 resistance as Bitcoin’s price flew past the $12 mark. Note that Ethereum’s short-term correlation to Bitcoin also dropped significantly. This could be the main reason the $450 was difficult to break after Bitcoin hit another yearly high of $12,500 again.

Ethereum’s Current Support is $400 and $365

Additionally, based on the daily chart, the $400 price position is currently acting as Ethereum’s current major support area. Meanwhile, the $365 area is also an area of interest as well if the $400 level fails to hold. Below the $365 area is the $290 support which is closer to Ethereum’s current Metcalfe value.

Finally, Ethereum’s daily trade volume is sitting in the red zone which indicates the presence of selling pressure. The daily MACD pattern has crossed in bearish area above the base which further confirms the chances of ETH’s price dropping in the coming days and weeks. As is the case with ETH/USD, it is recommended that traders and investors use low leverages and adequate stop losses when trading the digital asset (ETH) on derivatives platforms or exchanges.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.