The Crypto market after a great run yesterday has tumbled down again. Following BTCs dive from $40k to $36.2K, most top altcoins have also retraced heavily. This comes as Amazon has denied reports regarding the acceptance of Bitcoin by the end of the year.
In tandem with the entire crypto market, the leader of altcoins ETH has also plunged. Ethereum started a bullish rally yesterday as it surged above the $2000 level and the 100 hourly SMA. ETH rallied to a high of $2419 yesterday before starting the correction.
Ethereum faced sell pressure at the $2400 level and started tumbling down. The support levels at $2320 and $2250 were breached. ETH fell to a swing low of $2145 this morning.
The token is now trading at $2206 down by 6.1% in the last 24 hours.
The immediate resistance is stationed at $2,250 and $2,300 further. A daily close above $2300 will be needed to validate an uptrend. In case of a further dip, the immediate support is at $2210. Further, the major support is at $2080. The $2000 support will be back in play if ETH fails to hold on to the support levels.
On the four-hour chart, ETH is forming a rising wedge formation, this means more correction is likely. Adding to the bearish thesis are the technical indicators. The RSI and MACD both hint at a bearish signal.
Brian Kelly makes Bullish Case for Ethereum
Brian Kelly, the Founder & CEO of BKCM LLC, a digital currency investment firm, made a bullish case for Ethereum in an interview on CNBC Fast Money.
He said, that the imminent “London” hard fork, which includes the much-discussed EIP 1559, will drastically alter Ethereum’s monetary policy.
The update will make ETH deflationary and capped supply is always good for the price he added.
You’ve got everything in the world that is built on Ethereum. You’ve got DeFi, NFTs, all of that. Plus, a new monetary policy is coming up. Plus, potentially, tailwinds from just adoption of this as an asset class. And to me, that was pretty good for Ethereum.