Crypto Industry News:
Comparing the recent declines with the same events in 2018, senior strategist at JPMorgan Chase & Co found that the market situation is now much more flexible and solid than it was three years ago.
Comparison of market adjustments from 2018 and 2021
What Elon Musk and Tesla started a few weeks ago and received support from China and their negative attitude towards the cryptocurrency sector contributed to the most sharp correction on the market this year.
In a matter of days, bitcoin dropped from $ 50,000 to $ 30,000, and most altcoins fell even lower. While the above-mentioned reasons can be seen as triggers for a price collapse, the situation worsened as over-leveraged traders began liquidating their positions.
These adverse events left the door open to speculation about the current state of the market. One of the last to take on the task was Josh Younger, head of JPM's interest rate derivatives strategy. An analyst quoted by Bloomberg outlined the parallels of the recent decline in the cryptocurrency market with what happened in early 2018, when it actually started the year-long bear market.
Technical Market Outlook:
The ETH/USD pair had been rejected from the technical resistance seen at $2,861 and the bears had pushed the price towards the level of $2,639. The market still trades inside of the main descending channel and the breakout above the upper channel line is the most important breakout for the bulls right now. The bears are still in full control of the market and the next target for bears is seen at the level of $1,729, $1,633 and $1,544. The nearest technical support is seen at the level of $2,201.
Weekly Pivot Points:
WR3 - $4,688
WR2 - $4,131
WR1 - $2,922
Weekly Pivot - $2,341
WS1 - $1,141
WS2 - $579
WS3 - $181
Trading Recommendations:
Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.