Oct 12, 2022
VOT Research Desk
Market Insights & Analysis
The value of the Ethereum price fell by more than 3% this week as bears tried to reach $1,243.
As markets reevaluate the scenario, we might observe a modest recovery in ETH price action.
Expect a slight fade from $1,400 and watch it go back to $1,243.
After a choppy start to the week, the price of Ethereum is already recovering from its brief plunge of 3%. On the back of rumours that the BoE would or would not extend its bond interventions to stabilise the UK bond market, the cable and the pound sterling moved several figures in just two days. At risk is the collapse of the UK bond market, which holds billions in pension fund money at risk of disappearing into thin air.
Spillage from sterling placed ETH under pressure.
The UK bond market, as well as its two major currency pairs, EUR/GBP and cable (GBP/USD), are putting pressure on the price of ethereum. Although the spillover is fairly small, several alt-currencies were hit the worst by the unease, while the larger crypto names held steady but still had to retreat. Expect the top 3 big cryptocurrencies to benefit significantly from the enormous liquidity in this situation.
The price of ETH may perform any comeback it chooses. However, a straightforward red declining trend line that has been controlling price movement since October 7 continues to exert bearish pressure on it. With the base at that crucial historic level of $1,243, one might even claim that a bearish triangle is forming. In the upcoming weeks, anticipate a spike upward, rejection against the red falling trend line, and a break below that base toward $1,100.
When price action crosses over the red declining trend line, that is a bullish indicator. Whether or not a trigger event is driving it, that might be a purely technical breakthrough. Aspirations should increase and increase to $1,400. That would indicate a 7.5% rise, which might pave the way towards $1,450 with the monthly pivot and the 55-day SMA acting as stops.
