XRP latest collapse could force Ethereum to reach below $200 price level despite it alongside Bitcoin, got to new highs as reported previously in the Ethereum price news.
According to the charts below, the leading altcoin is now trading at $0.185 which is below the start of the year price of $0.19 and more than 40% below the year-to-date high of $0.34. Bitcoin on the other hand is up around 25% while Ethereum gained over 70%. XRP could be an outlier but the traders shared fractal analysis suggesting that XRP Latest collapse could push Ethereum lower following it. This also adds to the growing bear case against ETH which is predicted on fundamental trends.
XRP is one of the bigger large-cap cryptocurrencies that are trading lower than its start of year price and the weakness has not permeated to the rest of the asset market. One analyst said that this could change in the near future as he shared two charts from July 7th showing that the top Ripple’s coin formed in May and June looks similar to the ETH price action now. He wrote:
“What if $XRP is the leading indicator of $ETH?”
The trader suggested that XRP’s recent underperformance could be really bad for EThereum as the price level charts suggest that if the fractal plays out, ETH could start trading under $200 which is a 15% drop from the current levels. Ethereum is facing other bearish technical trends as other traders noted. The cryptocurrency has underperformed in the second half of the previous years:
“If ETH follows its cycle this time then high of the year could be in & we’ve 6 month correction.”
I've changed my mind after using a dozen of Defi platforms. So long as ETH 2.0 is not fully rolled out, there's an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX. https://t.co/vXAAFET3YK
— Qiao Wang (@QWQiao) June 28, 2020
ETH could start forming a bearish case based on its fundamentals despite enjoying a surge in adoption in the past weeks and benefiting from the popularity in decentralized finance applications. However, analysts say that this influx of adoption had a bearish side effect: the high transaction fees. Crypto Analyst Qiao Want explained:
“I’ve changed my mind after using a dozen of Defi platforms. So long as ETH 2.0 is not fully rolled out, there’s an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX.”
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