Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
U.Today - Due to Ethereum’s protracted decline, there has been a lot of conjecture regarding its long-term sustainability. Nevertheless, leading analyst Chris Burniske thinks that reports of Ethereum’s demise are wildly inflated despite the pessimism. Recently, Burniske said that there is a lot of hype about ETH’s demise. Though it ignites fires, the talk is good. His position implies that although Ethereum has experienced a significant decline, this is not the first time in the history of cryptocurrency.
Burniske acknowledged that he had bought the dip, but he is still wary of any additional drops. He went on to emphasize a strategic well-rounded approach to market uncertainty by saying, "If we go higher I just ride."
Technically speaking, Ethereum’s price movement is still concerning. Recently ETH dropped below the crucial $2,000 support level, and it is currently trading at about $1,900. A spike in selling volume coincided with the decline, which strengthened the bearish sentiment. With the 50-day EMA serving as a strong resistance zone close to $2,300 and the 200-day EMA at about $2,700, moving averages are positioned bearishly.
Arthur Hayes, another prominent analyst, thinks the current market structure is convoluted and lacks obvious bullish confirmation despite Ethereum’s notable downward momentum. Hayes’ insights were acknowledged by Burniske, who acknowledged that Hayes had predicted the ongoing pullback more accurately.
But he is still hopeful about Ethereum’s long-term viability and advises exercising caution as opposed to pure panic. In order to recover, Ethereum must take back $2,000 and create support above it. The primary bullish target is the $2,700-$3,000 range; a move above $2,300 would be the first indication of strength.
Ethereum may return to the $1,500 range if it breaks below the next significant support level, which is $1,750, if it keeps declining. Ethereum’s fundamentals are still sound, as evidenced by continuous network upgrades and growing institutional interest even in the face of the short-term bearish outlook.
Burniske’s methodical approach emphasizes the value of strategic positioning, as opposed to responding with a reactive fear. Ethereum’s subsequent actions will be critical in determining whether the worst is actually behind it, as the market looks for confirmation of a possible bottom.