Ethereum(ETH) Price Will Drop To $700 Level Following a Major Bull Trap

The post Ethereum(ETH) Price Will Drop To $700 Level Following a Major Bull Trap appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

The price of Ethereum has recovered from its recent lows, outperforming the price of Bitcoin. The latest Ethereum price surge, according to an independent market analyst, will be a clear fakeout.

In a bear market, analysts estimate Ethereum’s price might fall to $750, an 85 percent decline from it’s all-time high.

Ethereum’s price has risen 30 percent in the last 48 hours and experts say ETH’s recovery has outperformed Bitcoin’s, with the altcoin regaining $1,100 in just two days.

After falling to a support level of $880 on June 19, Ethereum began a short-term uptrend and soared above $1,100, entering a short-term positive zone. The altcoin is currently seeing significant resistance at the $1,150 and $1,160 levels.

Justin Bennett, co-founder of Cryptocademy, agrees with this forecast of a fakeout. Fakeouts to one side of the pattern cause lengthy movements in the opposite way, according to Bennett. He sees $900 and $780 as Ethereum price support levels.

Wendy O, the host of the O show and a prominent crypto expert, predicts the price of Ethereum might fall to $750. Wendy told NextAdvisor that the present Ethereum price is close to the start of 2021.

Bitcoin and Ethereum prices might plummet by as much as 85% in bear markets. If this is correct, an 85 percent drop from Ethereum’s all-time high of $4,800 would result in a price of $750, which Wendy is keeping an eye on.

Liquity’s largest liquidation

The wallet with code 0x2291F52bddc937b5B840d15E551e1DA8C80c2B3c liquidated a 71,863.47 ETH collateral position on Liquity at $927.13 at 19:39 GMT on June 18, according to data from Dune Analytics, a crypto data intelligence company. This was Liquity’s largest single liquidation ever.

Liquity is a decentralised borrowing protocol that allows users to take out loans with no interest in exchange for Ethereum collateral. Loans are paid out in LUSD, a Liquity protocol-based USD-pegged stablecoin.

The figure below shows the hourly total value locked (TVL) change on Liquity over the last week, with June 18 representing the highest ETH liquidation.

Source: https://coinpedia.org/ethereum/ethereumeth-price-will-drop-to-700-level-following-a-major-bull-trap/