Ethereum traders are bracing for a potential liquidity grab as the ETH/BTC pair encounters its 2022 lows. Noted crypto analyst Michaël van de Poppe predicts an imminent “liquidity candle” that could see Ethereum versus Bitcoin retest lows not witnessed since the crypto crash of summer in 2022. Van de Poppe suggests that a pending Bitcoin ETF approval in the US could be the catalyst that triggers an altcoin selloff and rotation of funds from Ethereum back into Bitcoin.
However, he also hints at the possibility of a bullish weekly divergence forming given current oversold conditions – an encouraging sign for ETH bulls hoping the damage from any liquidation event proves short-lived. Against this backdrop, traders will be closely monitoring $ETH support levels and looking for signs of strengthening momentum.
Crypto trader Cryptorphic provides a comprehensive analysis of Ethereum’s current state:
- Concerning Outlook: Signals a potential red flag for short-term altcoin performance.
- Sentiment Monitoring: Advises monitoring the last 50-day sentiment using the 50-day Moving Average (MA) on the daily chart.
- Current Position: Despite caution, Ethereum is currently trading above the MA, allowing for reentry if it holds as a deviation.
- Altcoin Rally Caution: acknowledges the significant rally in altcoins over recent months, suggesting a prudent move to take some profits off the table.
- Strategic Holding: Encourages considering holding profits in BTC and USDT for a more stable position.
- DYOR Disclaimer: Reminds followers to “Do Your Own Research” as a critical aspect, emphasizing that the information shared is not financial advice.
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Show more +Van de Poppe’s anticipation of Ethereum’s liquidity grab and Cryptorphic’s detailed examination provide valuable insights for those strategically positioned in Ethereum.
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