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Why This Trader Thinks Ethereum Could Plunge 20% Despite $400 Break

Published

4 Monaten ago

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  • Both Bitcoin and Ethereum have pushed higher after the local lows on Thursday.
  • Both digital assets are up around 5% from those lows, with BTC pushing to $11,600 and ETH to $400.
  • This move brings Ethereum, especially, above the pivotal $400 resistance.
  • $400 is a technical level and a psychological level, with the last break above this level in mid-August triggering a 10% rally.
  • One trader thinks that ETH could plunge 20% in the near future despite the recent strength.
  • Here’s why he thinks so.

Ethereum Could Plunge 20% Towards $320: Analyst Explains

Ethereum is preparing to fall from the $405 highs towards $320 according to a cryptocurrency analyst. The analyst in question shared the chart below on August 28th, noting that he thinks ETH could be primed to move from $405 to $320, which would mark a drop of 20%.

As to why this drop may be had, he cites how $405 is the “cleanest” short setup for him, where a move above that level would represent a continuation of the uptrend while the failure could signal a bearish reversal.

In his words:

“If you ask “why?” $405 represents the cleanest set up with the best stopping point for me to believe that the correction is over and the uptrend resumes. It’s simply the line in the sand for my set ups, below, short favoured, above, we resume upside movement. Good movement on $ETH right up into $405. Somewhere around here is the major decision point for me.”

Chart of ETH's price action over the past few weeks with analysis by crypto trader Cold Blooded Shiller (@Coldbloodshill on Twitter). Chart from TradingView.com

He did note, however, the other altcoins are looking relatively strong compared to Ethereum. This may suggest that altcoins are poised to undergo another leg higher rather than reversing lower:

“The only other thought I have is that the rest of the market (alts) look in great shape and many have completed S/R flips over the course of the night and morning. Perhaps $ETH will show the strength, but that’s what stops are for hey?”

Bitcoin Will Decide ETH’s Fate

Bitcoin is likely to decide ETH’s fate in the near term, though.

Fortunately for Ethereum bulls, the leading cryptocurrency is poised to move higher. One analyst shared the chart below just a day ago, noting that there are three signs showing that BTC will move higher after the $1,000 correction: the “buy 9” as per the Tom Demark Sequential, a bullish crossover in the Stoch RSI, and an uptrending MACD.

There are also other fundamental trends, like Fidelity Investments’ Bitcoin fund and ongoing money printing, set to bring BTC and Ethereum higher.

Image

Chart of BTC's recent price action with analysis by crypto trader CryptoHamster (@CryptoHamsterIO on Twitter). Chart from TradingView.com.
Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Why This Trader Thinks Ethereum Could Plunge 20% Despite $400 Break





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Ethereum

Crypto enthusiasts could make $122K per year mining Ethereum with this setup

Published

1 Stunde ago

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Dezember 29, 2020

By



Simon Byrne has taken at-home crypto mining to a whole new level as he looks to capitalize on Ethereum’s (ETH) enormous price potential. 

As first reported by Anthony Garreffa, Byrne has set up an ETH mining rig consisting of 78 GeForce RTX 3080 graphics cards. Although the RTX 3080 is marketed toward high-end PC gamers, crypto miners are using these powerful specs to enhance their capabilities.

With each card using roughly 300W of power, Byrne’s setup uses 23.4KW of energy. And that doesn’t even factor in associated costs like AC. All said, his electricity bill is estimated to run up to around $2,166 per month.

The RTX 3080 launched in September at a price of $699, but supply shortages have caused the per-unit cost to swell to $1,199. At the shortage price, that’s a price tag of $93,522 for Byrne’s setup.

Still, these costs could be offset by the operation’s mining capability. One GeForce RTX 3080 graphic card has a hash rate of around 83MH/s using Ethash, which should generate roughly 0.22236870 ETH per month, according to Garreffa. All 78 cards would therefore generate 17.3 ETH per month, which is equivalent to around $12,352 at today’s prices.

Stripping away the electricity costs, that’s roughly $10,200 per month or $122,000 per year. And that’s not factoring in Ethereum’s price potential during the next bull market.

Ether’s price zipped past $700 over the weekend, the first such move since mid-2018. The return of altseason, as some have predicted, could send ETH’s price even higher over the medium term as investors cycle from Bitcoin to other large-cap cryptocurrencies.