The altcoin market is fluctuating hard with Ethereum hitting over 10%. Altcoins Lido and Synthetix, which are directly linked to Ethereum, have lost more than 15%. However, analysts say that more drops are imminent for the 2 altcoins.
These 2 altcoins are at risk of major decline
Uniswap price continues to pull back this week even after a massive management vote. Its price has dropped more than 30% this month to just below $6.72. The exchange token is hovering near its lowest levels since July 27. On the technical side, the four-hour chart shows that UNI price has been in a strong downtrend for the past few weeks. UNI found strong support at $6.6581, which it has been struggling intensely to hold. Meanwhile, the RSI slumped below the neutral point and broke below the 25-day and 50-day moving average.
Uniswap is also developing a bear flag formation. Therefore, UNI will likely continue to decline as sellers target the next key support at $6. Analyst Crispus Nyaga says a move above the $7.10 resistance will invalidate the decline. Another altcoin that exhibited similar moves to Uniswap was Ethereum.
Fundamental developments hit Ethereum price hard
Ethereum was hit hard today, down 9%. Less than a month before the expected update, ETH is exhibiting volatile price movements. Meanwhile, Jerome Powell’s speech at the Jackson Hole meeting gave a bleak outlook for riskier assets, signaling that aggressive rate hikes will continue until “the job is done.” The Fed chairman was referring to his promise to reduce inflation to acceptable levels. This leads me to believe that Ethereum can trade lower even with the bullish momentum from the upcoming merger.
Ethereum Elliott wave analysis
To answer this question, let’s turn to the Elliot wave and the current wave count for Ethereum. The most recent wave count puts us at the beginning of a C wave, and Elliot’s wave states that the most reasonable distance of the C wave is a distance equal to or 1.618 times the A wave.
When we put in the trend-based Fibonacci retracement comparing wave A to the beginning of wave C, we end up with a more bearish scenario (Wave C equals 1.618 of wave A) that will take us back to the lows of the last few years.
The lowest price Ethereum has seen in over a year and a half was $880 on June 18, the start of Wave 1 of our current issue. This is more bearish for Wave C. If Wave C equals that of wave A, then we could see a bottom around $1,200. Analyst Joseph M. Wagner says that Ethereum price will gain extreme downward momentum at this point.
The analyst also says that statements by Jerome Powell or Ralph Nelson Elliot could be the catalyst for Ethereum to move to one of these targets ($1,200 or $900) in the coming weeks. As Kriptokoin.com, we have quoted the titles of Jerome Powell’s speech at the Jackson Hole meeting in this article.
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