According to the analysts monitoring the stock exchange markets, it had been more than 6 weeks since it had been facing a demise. The entire stock market had crashed and for the first time, both the stock trading and the cryptocurrency trading sector looked like.
Downtrend of the Stock Markets
Out of all the stock exchanges that were impacted by the growing economic pressure and other events, the tech exchanges were affected the most. As the tech sector saw a lack of demand among the investors, its impact was felt throughout the cryptocurrency industry.
The investment communities stopped investing huge or even medium stacks of money into cryptocurrencies. Therefore, the cryptocurrency sector continued losing its strength. During the downtrend, it was Bitcoin and major altcoins that were impacted the most.
Ethereum was impacted by the Stock Markets
The only cryptocurrency that can only come close to the might of Bitcoin is Ethereum (ETH). Ethereum also faced a downtrend and the beginning of May was full of tests and agony for the ETH investors. It continued facing a dip in its price and it didn’t seem there would be any point of recovery.
Recovery Time for Ethereum
With the stock exchange markets moving into the greens, the indicators are also growing green for Ethereum. Therefore, the analysts have started making bullish predictions surrounding Ethereum.
Despite strong indications of a bullish trend, the bearish side of Ethereum cannot be ignored. Thus, the analysts have also made negative predictions surrounding Ethereum. They want to see where the price of Ethereum would be if the bearish trend grows stronger.
Upward Movement of Ethereum
You must keep in mind that due to the recent circumstances, the volatility level of all major cryptocurrencies has narrowed down. This means that despite the movements, ETH won’t be making much progress in its trading price.
Still, the upward movement will be recorded for Ethereum. A look at the predictive data for ETH suggests that the investors may try and stall the bears with stronger buying. They are trying to move ETH as far away from the crucial support mark of $1,700 as possible.
It was on May 28 when ETH was about to hit the $1,700 mark but the bulls retaliated with a strong force. This helped ETH rebound and by May 29, ETH’s price has recovered at a significant rate.
While the RSI is suggesting a downtrend, the bulls may attempt to push ETH higher. If they succeed, they will be able to bring ETH close to $2,036 (20-day EMA). From there, the buyers may try and push ETH up to $2,159.
Downward Movement of ETH
If the bulls give into the bears’ strong selling power, then ETH’s price may hit and break down from the $1,700 mark. From there, ETH’s price may continue plunging and may come all the way to $1,300. However, if the stock markets keep regaining their old market values back, then ETH will definitely stay bullish.