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JR.Verse

04/29 17:24

Can Ethereum Bounce Back from Brutal Sell-Off?

Ethereum (ETH) continues to move sideways in the $1,600 area, as trader monitor trade war headlines and commentary from Fed policymakers, and wonder whether the crypto might soon recover from its brutal sell off.

Following volatility that saw Ethereum drop from highs close to $2,000 earlier this month to lows under $1,400 last week, ETH price action has calmed in recent sessions.

However, chart analysis still paints a bearish picture. Ethereum continues to trade below its major moving averages, including its 21DMA which has offered strong resistance in recent months.1744861480-can-ethereum-bounce-back-from-brutal-sell-off-heres-what-the-charts-say.jpg
These remarks were interrupted as “hawkish” by some analysts, and as a signal the Fed will be in no rush to cut interest rates to support a weakening economy/falling markets.

Risks remain tilted towards further losses for risk assets like stocks and altcoins (like ETH) in the weeks and months ahead.

Can Ethereum Bounce Back?
Ethereum’s near-term outlook may be bearish, but could the crypto be gearing up for a major recovery?

Mister Crypto noted on X on Wednesday that ETH has fallen back below its realized price, which he called “an amazing buying opportunity”.

Indeed, investors who bought as ETH neared or fell below its realized price in recent years would have made a tidy profit.

This time is unlikely to be any different. Ethereum remains the dominant DeFi chain, still way ahead of its closest rivals like Solana or Tron in terms of total value locked in smart contracts.
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