Stock Groups

Ethereum price finally topped $3K, but data suggests a reversal is nowhere in sight -Breaking

[ad_1]

© Reuters

In traditional markets, there is an old rule that is more like a trading rule. It goes: “when the trend is negative, one can only be neutral or short,” meaning, bet on the price decrease. The problem is that a relief bounce tricks traders into believing that the negative prevailing sentiment has shifted into a buyers’ market.

For example, after analyzing Ether‘s (ETHIf one looks at the price chart (see below), it is possible to conclude that a bull market should start sooner than expected after a 41% drop. This is unfortunately a false assumption. Markets can survive in non-definition periods (trendwise).

Price of Ether at FTX in USD TradingView
8.8-hour funding rate for Ether perpetual Futures. Source: Coinglass
Average 7-day of native ETH token transfers per day, USD. Source: CoinMetrics
Dapps network activity over a 30-day period. Source: DappRadar

Continue Reading on Coin Telegraph

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs include stocks, futures, indexes and Forex. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses caused by the data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]