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Market Cap Shrinks, Ethereum Takes Another Blow Ahead of Constantinople Fork

  • Thomas Hughes
    📈 Price Predictions

    Since Jan. 10, the total market cap has shrunk from $138 billion to $118 billion and most cryptocurrencies have been sliding lower


Market Cap Shrinks, Ethereum Takes Another Blow Ahead of Constantinople Fork
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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.

Since Jan. 10, the total market cap has shrunk from $138 billion to $118 billion and most cryptocurrencies have been sliding lower, thus putting on hold all hopes of a Crypto Winter end.

Ethereum’s upcoming Constantinople hard fork is expected to bring substantial improvements to the network and is scheduled to occur at block 7080000, which is predicted to be confirmed on Wednesday, Jan. 16. Despite this good news, Ethereum has been dumping almost 24% over the last 7 days, with the majority of losses coming during the last 4 days.

Chart Analysis – ETH/USD

After reaching a high at 165 against the US dollar, ETH/USD tried several more times to break that barrier but failed to do so and tumbled into the support at $117, currently trading just 2 USD higher, at $119.


ETH/USD chart

There doesn’t seem to be any fundamental reason behind the drop (no piece of information that triggered it), so it appears this is a combination of Bitcoin correlation (BTC is also dropping and usually drags altcoins with it), technical reasons and maybe a pinch of the metaphorical FUD.

If the 117-barrier is broken, we can expect to see a further drop into the key psychological support at 100, but it must be noted that last time ETH hit 117, it jumped swiftly higher (albeit it was trading in a mini uptrend at the time). The Relative Strength Index is deep in oversold, but that alone is just an indication that a counter move will come later, not a buy signal.

Support zone: 117 followed by 100

Resistance zone: 127 and the 200 EMA (thick blue line on chart)

Most likely scenario: break of 117, potential move into 100

Alternate scenario: timid rally based on the oversold position of the RSI

Cover image via u.today
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Bitcoin Price Is Heading to Its Next $7,000 Target! When Will BTC Break Resistance?


Bitcoin Price Is Heading to Its Next $7,000 Target! When Will BTC Break Resistance?
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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.

Contents

After a short pause, Bitcoin has decided to take a few steps up to reach the new resistance level. What’s the chance for BTC to hit new price levels? Read Bitcoin price predictions from Twitter users to find out what they think about the short-term prospects of this cryptocurrency.

BTC will continue rising

There are many positive forecasts claiming that BTC will reach new heights in the nearest future:

$5,600 is the next threshold to reach:

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The bullish shift hasn’t ended yet:

Tendencies remain positive:

Expect new bullish runs:

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Time for retracement?

At the same time, many users see that there’s some BTC volume declining, which means it’s very likely to dump a bit:

Another piece of proof:

A lot depends on Bitcoin’s ability to stay above the $5,000 level:

Reaching a new height and dumping is another very likely scenario for BTC:

However, the next height before a correction might be somewhere about $7,000:

Time will show whether BTC will be able to overcome the new resistance. At the moment, it’s not the right time to enter the market. Wait for BTC to dump a bit – it is very likely to happen.

Cover image via 123rf.com
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