Analysts Say Ethereum Buyers Remain In Charge at $240
Ethereum incurred a serious rejection on June 2 after it broke out above $250. Within some minutes, the cryptocurrency asset declined from over $250 to $225, even as Bitcoin declined on leading exchanges.
In spite of this powerful decline, analysts still believe buyers are in control of the asset. When the asset’s retracement ensued, a renowned trader known as BigCheds on Twitter said Ethereum is still above crucial support levels.
— Cheds (@BigCheds) June 3, 2020
The chart attached to his tweet shows that the performance of Ethereum is still over the 8-day moving average, together with the $225 horizontal barrier. This is critical as it suggests buyers’ control.
However, some market participants are considering the role of Bitfinex’s Ethereum market in the current market structure. Over the previous few months, there has been an upsurge in the number of long ETH contracts on Bitfinex worth more than $300 million. This represents a lifetime high, even more than the number in January 2020 or at the peak of the bull market which ensued two years ago.
As of now, it is unclear how this trend has influenced the price of Ethereum but perhaps it is not bearish. Cole Peterson tweeted about the possible impact of Ethereum long positions on Bitfinex:
This is concerning.
Ethereum longs on Bitfinex surged to an ATH right before the March 12th meltdown.
If the market declines, it seems like Ethereum could see an even larger cascade of liquidations this time around. pic.twitter.com/wlRjDf83ou
— Cole Petersen (@ColePetersen14) May 24, 2020
Apart from BigCheds, another analyst known as galaxyBTC on Twitter also said Ethereum is on the way to attaining $300 by the end of June. He shared a chart which illustrates that the crypto asset in recent times recorded a textbook break out of a symmetrical triangle, suggesting a positive trend:
— Galaxy (@galaxyBTC) June 2, 2020