- Ethereum’s collateral position set a new record as 71,863.47 ETH was liquidated on June 18.
- An independent market analyst has told its supporters that Ethereum’s latest price rise would be a clean counterfeit.
- Analysts estimate that the price of Ethereum could drop to $750 in the bear market, down 85% from its all-time high.
UPDATE: Ethereum price predictions are mostly bearish as the major altcoin continues to trade between psychological support at $1,000 and a series of lower highs that keep reaffirming the downtrend. ongoing decline. Despite this, ETH price is seeing a rebound on Thursday, trading just above $1,100 at the time of this update (1410 GMT). On-chain metrics are mostly bearish, as reported by Netcost-Security crypto analyst Akash Girimath, which also adds downward pressure on Ethereum, but there are some technical clues that at least a bottom provisional could surface around this area. According to Girimath, ETH traders need to rally past the 8-day EMA for a chance to reverse the trend and avoid the “fake” theory that could trigger another dive to $750.
PREVIOUS UPDATE: Ethereum price action is poised to confirm the “fakeout” theory exposed in this article. After testing the resistance at $1,200, ETH traders were shunned on Tuesday and the day closed with a second consecutive Doji candlestick, this time with a tombstone shape that portends more losses to come. ETH price is trading in the red on Wednesday at the time of this update (10:40 GMT) and psychological support at $1,000, which held during the bearish attempt to break below last Saturday, could be threatened this time. Much will hinge on what Federal Reserve Chairman Jerome Powell is due to testify in the US Congress later today (1400 GMT). Powell’s words will have tremendous power throughout the financial markets, and especially high-risk, high-growth cryptocurrencies. A hawkish (more pessimistic) Powell could send Ethereum below $1,000.
Risky assets top Powell’s talk + profit taking from those who caught the bottom.
The key levels to hold now are:
– #Bitcoins ~$19,000
– Ethereum ~$1,000
– NQ ~11,000
Otherwise new stockings. pic.twitter.com/uLMtuTcOiN
— tedtalksmacro (@tedtalksmacro) June 22, 2022
Ethereum price rebounded from its recent drop, outperforming Bitcoin. Experts believe the recent rebound could end up being a “net false” as liquidations hit large Ethereum collateral positions. Some analysts predict a bearish outlook on the price of Ethereum.
Also Read: This Token Could Trigger the Next Ethereum and Crypto Crash
Liquidation of Ethereum’s largest collateral position
Based on data from Dune Analytics, a cryptocurrency data intelligence platform, the wallet with code 0x2291F52bddc937b5B840d15E551e1DA8C80c2B3c liquidated a collateral position of 71,863.47 ETH on Liquity at $927.13, as of 19:39 GMT on June 18. This set the largest single liquidation record for Liquity.
Liquity is a decentralized borrowing protocol that allows users to take out 0% interest loans against Ethereum collateral. Loans are paid in LUSD, a stablecoin pegged to the Liquity protocol. The chart below depicts the hourly change in Total Value Locked (TVL) over the past week on Liquity and ETH’s largest liquidation is depicted on June 18th.
Hourly TVL change (7 days) Liquidity
Ethereum price gains 30% in two days, overtaking Bitcoin
After its recent massive drop, Ethereum price rebounded, rising 30% in 48 hours. Experts noted that this rally in ETH overtook Bitcoin as the altcoin rallied back above $1,100 in two days. Experts have noted that Ethereum is currently the best performing asset among the top five cryptocurrencies by market capitalization.
Ethereum started a short-term bullish trend after falling to the support zone at $880 on June 19 and climbed above $1,100 entering a short-term bullish zone. The altcoin is now facing major resistance near the $1,150 and $1,160 levels.
ETH-USD Price Chart
Analyst calls Ethereum price ‘clean rigging’
PostyXBT, a crypto trader and analyst, told his 79,900 followers to watch out for Ethereum’s recent price rebound. The analyst argued that the move would “lead to clean infringement.”
The analyst was quoted in a tweet:
[Ethereum]…stopped on level recovery. It looks like an opportunity to swing to $1250, but $btc still hasn’t recovered, it’s like the same level. Would make a clean fake. Be careful.
Justin Bennett, co-founder of Cryptocademy, supports this false prediction. Bennett noted that false exits on one side of the pattern trigger extended moves in the opposite direction. He considers $900 and $780 as support levels for Ethereum price.
False exits on one side of a pattern usually trigger extended moves in the opposite direction. $ETH is a perfect example. Fakeout above 1200 on the 15th and outage today.
— Justin Bennett (@JustinBennettFX) June 18, 2022
Ethereum price could drop to $750 for this reason
Wendy O, host of the O show and leading crypto analyst, thinks the price of Ethereum could drop to $750. Wendy argues that the current price of Ethereum is near the beginning of 2021. Typically in bear markets, Bitcoin and Ethereum prices can fall by up to 85%. If true, an 85% drawdown from Ethereum’s all-time high of $4,800 would lead to $750 and this is the level Wendy is watching.
Wendy told NextAdvisor,
Ethereum hit an all-time high in November 2021 at around $4,800, so an 85% correction would lead to around $750. However, it will not be a direct hit.
Key investment strategy ahead of the next Ethereum bull run
Netcost-Security analysts have recommended dollar cost averaging (DCA) as the ideal investment strategy ahead of the next Ethereum bull run. They consider $900 as the lowest price for Ethereum and recommend investments of $500 when the price reaches $1000 and again when it reaches $1100. For more information, watch this video: