Tag: michael van de poppe

Ethereum Might Experience a Period of Consolidation, says Market Analyst

Ethereum (ETH) was hovering around the $2,584 price during intraday trading after regaining momentum in the last 24-hours.

The second-leading cryptocurrency by market capitalisation was on the receiving end from the recent crypto market crash, given that its price nosedived to lows of $2,000 from an all-time high (ATH) of $4,350.

Crypto analyst Michaël van de Poppe acknowledged that ETH held a crucial support level, which may enter into a period of consolidation. He explained:

“Ethereum is still holding a critical level of support here, through which a period of consolidation is likely going to happen. This happened in 2016 & 2017 as well, after which a new impulse wave happened.”

On-chain metrics provider Glassnode also noted that the last active Ethereum supply over the previous three to six months reached a 2-year high of 18.55 million ETH, suggesting that a considerable amount of Ethereum was being transferred from cold storage to exchanges.

Ethereum’s transaction volume dries up

According to Glassnode:

“Ethereum’s transaction volume (7d MA) just reached a 1-month low of $230,006,909.69.”

Moreover, the number of ETH transfers recently hit a monthly low of 24,471.607.

Nevertheless, the total fees paid on the Ethereum network reached an 11-month low of 105.547 ETH. Its cost has become a significant challenge that ETH had faced, given that at one time, it hit a record high which was out of reach for the average trader. 

The decentralised finance (DeFi) sector aided Ethereum’s recent bull run. As a result, this area experienced an exponential expansion over the past few months as the number of users increased by 1,300% to hit 2.1 million. The total value locked (TVL) in smart contracts shot up by 9,000% and stood at $113 billion.

It, however, remains to be observed whether Ethereum will regain momentum to continue scaling new heights before the year closes. 

Bitcoin Needs to Sustain the Level Around $32.2-33K as Support to Strengthen an Upward Momentum, says Market Analyst

Bitcoin (BTC) was down by 1.48% over the last 24 hours after hitting the $36K level, with a price of $34,615 during intraday trading, according to CoinMarketCap.

BTC has been consolidating between the $30K and $40K range for more than two months, although it nosedived from an all-time high of $64.8K recorded in mid-April. Furthermore, the leading cryptocurrency recently dropped to lows of $28K as China’s crypto mining crackdown intensified. 

Market analyst Michael van de Poppe believes that the renewed upward momentum in the BTC market will be sustained if the area between $32.2 and $33K is strong enough to support. He explained:

“I find the level around $32.2-33K extremely important to sustain as support. That would generate a higher low & strength towards further upwards momentum.”

Higher-highs and higher-lows are usually generated in an uptrend, whereas lower-highs and lower-lows are noted in a downtrend.

Michael van de Poppe had previously stated that if this area holds, the next level to be hit will be $38K. 

His sentiments were recently echoed by another trader, who noted:

“If Bitcoin doesn’t fall below 32K within the next 48 hours, We are probably to rise sharply to 39K and 42K Zone.”

Strong hands have reduced selling pressure from weak hands

According to on-chain analyst William Clemente III:

“Imo this chart is the easiest way to visualize what’s taken place over the last month under the hood. Strong hands have added increasingly through the recent price decline, now offsetting selling from weak hands. Now we wait for reaccumulation to complete – seller exhaustion.”

Strong hands are investors who hold Bitcoin for the long term, whereas weak hands hold it for the short term. 

Clemente III had previously pointed out that the deadlock stuck on the BTC network was being caused by long and short-term holders. He acknowledged that long-term holders had bought an additional 579,940 BTC in the past month, whereas their short-term counterparts had sold 521,983 BTC in the same period.

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