Crypto analyst Filip L says that Polkadot (DOT) is moving sideways as the bulls have lost control over the technical level. Also, Ethereum Classic (ETC) is not seeing a higher rise after the bulls fail to reach $42. Crypto analyst John Isige notes that the leading altcoin Ethereum (ETH) is bleeding before the much-anticipated Merge. We have compiled analysts’ analysis of DOT, ETC and ETH for our readers.
“DOT sees storytelling drop in RSI”
Polkadot seems to be continuing its fifth consecutive failure to break and close above the monthly pivot and 55-day SMA. It’s crucial that this hurdle is broken, then retested, before the bulls begin to consider raising the price action to as high as $9.00. The FED is preparing another 75 basis point hike next week, surpassing the ECB. Therefore, the window of opportunity will close quite quickly. The inflation figures announced this afternoon are very important going forward.
It is possible for DOT to continue rising above the 55-day SMA on the day. But so far it has not managed to manage the daily close or open above the level. The bears are gaining momentum. Bulls burn fuel fast. This too is likely to turn into a distribution phase before the next pullback. It is likely to trigger a return to $6.85 after the CPI figures.
As mentioned above, a plain and simple daily close or bullish move above the 55-day SMA will work to consolidate the bullish leg higher. More traders need to flock to get behind the rally and price action quickly picks up to $9.00. With a monthly close above R1, it will support taking some profits. It will also need a similar scenario to limit any possible dips to occur.
“ETC set for pennant drop”
Ethereum Classic price action is not going anywhere for the fourth day in a row as volumes slow down and the RSI starts to turn to the downside. It doesn’t look like it will even touch $42 as the bulls lose momentum. ETC traders won’t be able to use this momentum for a final rally.
It looks like the altcoin is preparing for a downtrend in its pennant price pattern. This means an initial drop to $36 as the monthly pivot provides support. If the dollar’s strength returns, it will likely be enough to push the price down. In this case, expect it to trade around $32.90, the previous historically important level. With this squeeze, the 55-day Simple Moving Average will be broken again. Thus, it will lose its importance in supporting the price action.
If the dollar weakens further and the EUR/USD pair sees near 1.05 (EUR/USD), it will be enough for the bulls to finally hit $42. A one-day close above this level and a retest of support the day after that is crucial before we start to consider the possibility of the price reaching $45.52 or $48.33.
“Leading altcoin Ethereum succumbs to selling pressure”
Global markets, including crypto and equities, reversed temporary gains Tuesday after reports of higher-than-expected inflation levels in the US. cryptocoin.comAs you follow, the US CPI increased by 0.1% month on month and 8.3% year on year in August. Markets expect the Fed to continue tightening its monetary policy. This will cause even more pain. Markets now see a 0.75% rate hike as very likely.
Meanwhile, Ethereum losses are unlikely to stop at $1,600. The Directional Movement Index (DMI) is on the verge of confirming the Ethereum price downtrend. Traders looking to short Ethereum 100-day (blue) Simple Moving Average (SMA) should watch out for +DI as it falls below -DI. More confirmations will come from the price confirming a break below the ascending channel.
Despite global economic pressure, Ethereum rallies before and after Merge are still possible. The software upgrade on September 15 will be the largest in altcoin history. It will also arouse interest in the crypto space. Investors may appreciate the vital support areas highlighted by IntoTheBlock’s IOMAP on-chain model if they quickly move past the pullback on Tuesday. According to this metric, 1.37 million addresses purchased 8.56 million ETH tokens between $1,557 and $1,064. If this zone is defended, Ethereum will break free of the bearish shackles to move above $2,000. Therefore, new purchase entries will come.
A recovery from the $1,600 support is largely unhindered due to the relatively weak resistance levels. There is a seller congestion zone in the region ranging between $1,609 and $1,657. However, it is not solid enough to prevent ETH from rising to possibly $1,800 and then $2,000.
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