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In summary
- The Cryptocurrency market saw little volatility on Friday, with Bitcoin trading flat at $58,020.
- Ethereum saw a steeper decline, down 0.8% over the past day and 15% over the past month, trading at $2,345.
- Analysts at 10X Research suggest that Ethereum could be approaching long-term oversold conditions and predict a possible top in the next two to four months.
The cryptocurrency market didn’t see much volatility on Friday. At the time of writing, Bitcoin is trading flat at $58,020, down just 0.4% over the past 24 hours and 5% over the past month.
In the absence of volume, analysts have been predicting a possible Ethereum (ETH) top in the next 2-4 months.
The second-largest cryptocurrency by market cap has seen a slightly steeper drop during Friday morning trading. According to data from CoinGecko, its price is down 0.8% over the past day, trading at $2,345.
It is important to note that Ethereum has underperformed Bitcoin over the past month, falling 15% compared to Bitcoin’s 5% drop.
Amid this period of consolidation, analysts at 10X Research suggest that Ethereum could be approaching long-term oversold conditions. While they warn against expecting an immediate bounce, the firm predicts that a potential top could be forming in the next two to four months.
“Traders should monitor medium-term reversal indicators such as RSI and Stochastics,” advises the research team at 10X Research, noting that these metrics can signal a trend reversal from deeply oversold levels.
The RSI measures the speed and change of price movements to identify overbought or oversold conditions. Stochastics, on the other hand, compare a security’s closing price to its price range over a set period, helping to predict potential market reversals.
Meanwhile, the ETF market continues to show divergent trends between Bitcoin and Ethereum products. On September 12, spot Bitcoin ETFs saw a net inflow of $39 million. ARK (ARKB) and Fidelity (FBTC) led this trend, contributing $18.3 million and $11.5 million respectively.
In contrast, Ethereum spot ETFs saw a net outflow of $20.1 million on the same day, driven primarily by Grayscale’s (ETHE) fund.
James Davies, co-founder and chief product officer of Crypto Valley Exchange CVEX.XYZ, told Decrypt that broader economic factors have been having a pronounced influence on the markets.
“Tech stocks globally are showing a rebound, good inflation data, improving growth data everywhere are enabling investment,” he said. Davies also highlighted the importance of positive indicators from China and the potential for US interest rate cuts as factors positioning the market for growth.
Looking ahead to the US presidential election, Darren Franceschini, Co-Founder of Fideum, told Decrypt that he anticipates a period of sideways price movement leading up to November.
“The outcome of this election could have a significant impact on the future acceptance and regulation of cryptocurrencies in U.S. financial markets,” he said.
He suggested that a crypto-friendly president could serve as a catalyst for market growth, but expects high trading volume with minimal price movement until there is more clarity.
Edited by Stacy Elliott.
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