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Ethereum (ETH) Price Faces Uncertainty Because of These Indicators; Meme Kombat Brings Opportunity

4 mins
Updated by Maria Petrova
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Ethereum (ETH) is up 4% today, trading around $2,250 at press time. The recent price action has sparked much discussion among analysts regarding ETH’s outlook.

HypeManAlex, an analyst with over 50k Twitter followers, posted a bullish prediction on TradingView: “ETH is forming bullish patterns on the chart; there are also short liquidations the whales will try and liquidate. ETH retested support at $2000 and since then has bounced. Bitcoin and Ethereum ETF talks and more bullish sentiment in the markets could see prices explode to $2650 soon. I am currently LONG.” 

In other words, HypeManAlex sees technical and fundamental reasons for ETH to continue its upward trajectory. Specifically, he points to bullish chart patterns, potential for short squeezes, established price support, and positive market developments like ETF speculation. His price target of $2,650 represents nearly a 20% upside from current levels.

Sypool, a crypto trader on TradingView, provided more measured analysis recapitulating ETH’s price action last week. On Tuesday last week, the U.S. Department of Labor released the CPI for November, and the CPI dropped further. At Wednesday’s FOMC press conference, Powell said that although the possibility of raising interest rates will be retained in the FOMC report, for him, the interest rate hikes are basically over, and various factors will be considered in subsequent monetary policy adjustments.

This less hawkish tone from the Fed supported a crypto market rally. However, Sypool sees weaknesses in ETH’s outlook: “ETH maintained a decline with fluctuation last week. We can see that the fluctuations made it reach the given resistance level and the given support level, but did not break through them. Relative to BTC, ETH has higher trading volume, but the bulls are weaker.”

He added: “Switching to the 4h level, the situation of ETH is not good. Although there are consecutive green candles, hardly whales to be seen on the WTA indicator, and retail investor participation is also decreasing. On the ME indicator, the purple wavy area is close to disappearing. The current rally is fragile.”

Sypool notes that while there have been several consecutive green candles on this chart, indicating rising prices, the rally looks fragile for a few reasons:

  • Hardly any whale wallets (large ETH holders with outsized impacts on price) are seen accumulating ETH right now based on his proprietary WTA indicator that tracks this.
  • Retail investor participation is decreasing as well based on volume and other factors. So the buying pressure fueling this bounce is tapering off.
  • On his custom ME momentum indicator, the purple “wavy area” is close to disappearing. This suggests bullish momentum is waning in the near term.

So, Sypool sees the current ETH price rally as lacking substance because both whale and retail buying pressure appears to be decreasing. And his own momentum indicator flashes warning signs of a rally running out of steam. So without renewed fundamental catalysts, he expects this fragile bounce to roll over into further declines.

Odds of Ethereum Correcting Lower?

Given the conflicting analyst takes, what are the actual odds of an Ethereum correction? There are reasons to be cautious in the near term. As Sypool noted, ETH has struggled to break key levels and bullish momentum is slowing based on some indicators. Whales also appear hesitant to push the price higher.

However, the long-term setup remains decidedly bullish thanks to major potential catalysts like Ethereum ETF approval. Top asset manager BlackRock and others have filed for such products, which would unlock huge institutional inflows.

Enter Meme Kombat – A New Meme Coin Challenger

While meme coins like SHIB, DOGE capture broader investor attention, a formidable new contender called Meme Kombat (MK) is set to enter the arena.

Combining gaming and staking with a battle arena for popular meme mascots, Meme Kombat offers a uniquely engaging token designed specifically to go viral.

Central to its value proposition is a lucrative staking model offering yields as high as 235% APY for locking up MK liquidity. This allows holders to generate substantial passive income from their dormant coin balances.

Additionally, Meme Kombat incorporates a play-to-earn (P2E) battle arena where users can use MK tokens on fight outcomes between their favorite memes. Winners take home the prize pots, introducing an active gaming element with real token rewards.

This fusion of gaming, memes, and staking makes for an exciting attraction for both gamers and crypto investors alike. Meme Kombat taps directly into proven trends like P2E and high APYs while leveraging the viral nature of the meme coin phenomenon.

To fund these rewards and drive continual growth, 50% of the total supply is allocated to the ongoing presale. A further 30% will continually fund staking pots and battle prizes, ensuring long-tail potential.

Leading the Meme Kombat project is founder Matt Whiteman, a seasoned entrepreneur with extensive experience in crypto gaming – a key background given the project’s gaming focus.

Investors have taken note of Meme Kombat’s unique value proposition and team pedigree. The presale has already raised over $3.8 million, demonstrating strong early demand leading up to MK’s listing on Uniswap.

Visit MK Presale

Top crypto projects in the US | June 2024

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