Investors in cryptocurrencies talk about Bitcoin’s halving and spot ETFs, but they are ignoring the reality of a potential price dump.
ETHUSD: Weekly Chart
Ethereum has trended lower for four weeks, and the price is consistent with a potential price dump.
Targets in ETH are at $1,350 and $1,100, with the potential for a sell-off if stocks remain weaker this week.
Crypto enthusiasts are talking of a potential bull run from Bitcoin halving next year, but that bull run could come from a lower price.
Investors are also bullish on the potential for a spot market ETF, but they are in denial about the fact that there have been ETFs around on the futures market for years.
The biggest elephant in the room is that China and the United States, the world’s two largest economies, will not adopt a third-party decentralised currency, which means a government-issued Central Bank Digital Currency (CBDC) is more likely. Bitcoin and Ethereum volumes have slumped, and there is a big risk of whales liquidating as the cryptos underperform.
The current price action in Ethereum favours a price dump until there is a buying signal, and traders should beware.
