Key indicator suggests Ethereum’s price could rebound to $2,450 by next week
Ethereum's 20-day exponential moving average (EMA) shows ETH could continue its upward recovery.
- ETH is currently down 76% from its all-time high of AUD$7,000.
- Tether CTO Paolo Ardoino has alleged that hedge funds are trying to destabilise USDT's liquidity pools while spreading FUD regarding the digital asset market.
- Cardano's technicals suggest that it might be faced with another downturn in the near term despite its highly anticipated "Vasil" upgrade looming large on the horizon.
The last couple of weeks have been extremely volatile for Ethereum, with its price constantly fluctuating between AUD$1,300 and AUD$1,900. ETH's monthly losses currently stand at -36% while trading at AUD$1,663.
ETH was expected to showcase bullish momentum over the weekend since it had stabilised around its 20-day EMA (approximately AUD$1,900) on 26 June, a metric it has been able to maintain for over a week running. Exponential moving average (EMA) is a technical indicator that helps track the value of an asset over a long period, allowing investors to assess its future price action.
With bears still seemingly in control of the market, it appears as though ETH could retest its AUD$1,500 threshold. If this happens, a dip below the AUD$1,450 resistance may also be on the cards. Conversely, if the crypto market heats up, there is a chance that bulls may be able to send Ethereum above its 20-day EMA to around AUD$2,460, signalling the start of a new uptrend.
Are hedge funds trying to destabilise the crypto market?
A little over 24 hours ago, Paolo Ardoino, chief technological officer for Tether, the principal body behind the world's most widely used stablecoin, USDT, alleged that a number of hedge funds had initiated a "coordinated attack" to short sell the US-dollar-pegged digital currency while also spreading FUD regarding the digital asset market.
In a 12-tweet-long thread, Ardoino suggested that hedge funds have been accumulating loans worth millions of dollars to short USDT, a trend that has intensified since the fall of Terra (Luna, now LunaC) back in early May. In his view, a concerted effort is being made to create monetary pressure so as to mess with USDT's liquidity and eventually buy back the tokens at a way lesser value. On the subject, he opined:
"Despite all the public 3rd party attestations, our collaboration with regulators, our increased transparency efforts, our commitment to phase out CP exposure and move into US Treasuries, our settlements, ... they kept thinking and suggesting that we, Tether, are the bad guys."
Cardano's poor technicals signal major dip
Cardano (ADA) is currently exhibiting a pattern referred to as the "bear pennant", which signifies range-bound price consolidation that could eventually result in a strong downturn. There is a chance that the coming week or so could see ADA dip from its 28 June price of AUD$0.87 to approximately AUD$0.29.
This negative price action comes despite news of Cardano's highly anticipated Vasil hard fork looming large on the horizon. The upgrade, which was initially set to take place in June, is set to go live sometime in July. It will help bolster the network's overall speed, security and scalability while making it more dev-friendly.
Disclosure: The author owns a range of cryptocurrencies at the time of writing
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