Main navigation

Bloomberg: Worst Week Since Mid-June for Ethereum

Thu, 09/22/2022 - 11:55
article image
Arman Shirinyan
This indicator might potentially show us second biggest cryptocurrency on market will act in next few weeks
Bloomberg: Worst Week Since Mid-June for Ethereum
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

The Merge update that everyone has anticipated for the last few months did not bring the expected pump to Ethereum, creating more issues for investors than benefits. The profitability of the asset dropped by more than 10%, and Bloomberg analysts believe it is not the end.

Issues with price momentum

The 22% loss dragged ETH to the oversold zone on the Relative Strength Index and, historically, this is not a good sign for the second biggest asset on the market. Investors who had previously been betting money on the reversal after the asset reached the oversold zone lost their holdings.

Ethereum Chart
Source: TradingView

However, the data provided by Bloomberg is measured in 20-day periods, which is not that significant for an asset reaching the oversold zone on the RSI. For example, back in June, Ethereum reached the same oversold range and exited it only after a 30-day consolidation period.

The short-term momentum on Ethereum is indeed bearish not only because of the RSI. The drop below crucial moving averages like the 50-day moving average is a sign of an upcoming plunge, further considering the lack of growth factors that would push Ether back into the bullish price range.

Cardano’s Big Day Arrives, Whales Grab ADA in Last-Minute Rush

The trading volume on the asset also suggests that the market will most likely face a continuation of the downtrend and Ether will plunge even further. However, the recovery from the most recent rate hike might have an effect on the cryptocurrency market in general.

With the easing of the monetary policy, Ethereum and other high-risk assets might face the return of the buying volume and risk demand. At the same time, the current monetary policy tightening cycle is expected to last at least until the beginning of 2023.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.