Ethereum Dips Below $1.8k Amid Market Uncertainty
Ethereum, the altcoin king, is facing a rather turbulent market session today, recording losses of over 3% within the last 24 hours. As of press time, Ethereum (ETH) trades at $1760, marking a 3.18% decrease and a weekly loss of 7.3%. The altcoin’s trading volume dipped by over 8% within the same period.
Rising Volatility Levels and Bearish Momentum
Ethereum’s volatility levels are on the rise, with its current bearish trend contributing to the uncertainty. The Bollinger bands, used to gauge market volatility, have diverged significantly, highlighting the ambiguity surrounding Ethereum’s network.
The relative strength index (RSI) also hints at a potential bearish momentum as it dips below its average line. The Moving Average Convergence Divergence (MACD) indicator echoes this sentiment by showing negative movement, indicating increased bear activity on the network.
Binance CEO Bets on an ETH Rally
Despite the bearish trend, Binance CEO Changpeng Zhao (CZ) remains optimistic about Ethereum’s prospects. He believes the asset could rally despite its recent lows, based on its performance over the past few weeks.
CZ’s optimism stems from the fact that Ethereum’s beacon chain smart contract now has an all-time high of 19,375,242 ETH locked in. He suggests that an increase in locked Ethereum tokens could reduce the total quantity of ETH available on the market, possibly leading to a price surge.
Concerns Over Potential Altcoin Bear Market
Despite the general optimism surrounding Ethereum’s future, some experts express concerns about a possible bear market for other cryptocurrencies. A trader and analyst known as ‘Bluntz’ warns that alternative cryptocurrencies could follow a negative trend on longer timeframes, potentially leading to more severe declines than anticipated.
As the market grapples with Ethereum’s recent dip and the potential for further declines in other cryptocurrencies, all eyes will be on Ethereum to see if it can rally as CZ predicts.
