The federal reserve announced its highest ever inflation rate in the last 27 years leading to a price drop in the already falling Bitcoin price. However investors are relieved looking at ETH trying to maintain its market position in the bear markets.
How is Ethereum rising?
As traders and investors are trying to adjust with the new market sentiment ETH is showing a sigh of relief. According to market sources many people believe that the amount of disposable cash in some Cryptocurrencies is very low. This clearly means that the Bulls can still play along with the prices.
The price of Ethereum which ranges around $1072 is facing stiff resistance as bulls are trying to raise the price. However this completely depends on the factor whether bulls have already burned enough cash to maintain the price or if they are still in anticipation of a breakout.
A reason for this could be because of the dollar trading falling at low levels. However if the dollar starts trading strong the market would see a scenario wherein the trader’s would be squeezed out. This would result in a massive price slump. Further if the Bulls are squeezed out many investors will try to exit Ethereum in a bid to save their remaining funds which would result in a massive price drop of nearly 25% triggering a downfall of Ethereum. Another risk involved in Ethereum is that the market could see another round of massive selling which would trigger a massive price drop. Although ETH is showing minor positive signs of a comeback however there are many risks involved in the market alongside.
Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.
Author - Govind R.