Cryptocurrencies retain the bearish mood into the weekend after a turbulent week, with both Bitcoin and Ethereum slumping.
Bitcoin fell below $17,000 again on Saturday after another development from troubled FTX surfaced online.
Today’s decline in Ethereum’s price kept the currency below $1,300. . Following a carnage week, the markets were given a break by the fleeting glimmer of hope.
According to Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, the future direction of Ethereum (ETH) hinges on a key support level.
McGlone said that the second-largest cryptocurrency may drop to a two-year low of roughly $500 if Ethereum’s support level above $1,000 slumps.
Ethereum
According to him, the $1,000 Ethereum support could be a turning point as it represents more of a financial-market revolution taking place in cryptocurrencies, similar to the introduction of futures and exchange-traded funds.
In contrast to Bitcoin, the chart shows the No. 2 cryptocurrency’s consistent rising trend and also the absence of support after $1,000.
McGlone also said that Ethereum’s switch to a proof-of-stake consensus algorithm has had a positive effect on Ethereum.,
“Shifting to proof of stake amid the energy crisis, Ethereum as the leading platform for crypto dollars has provided some relative buoyancy.”
Bitcoin
Looking at Bitcoin (BTC), McGlone said that the $20,000 resistance level needs to turn into support for it to turn bullish.
“Sustaining above $20,000 should be necessary to affirm recovery at levels we expect will eventually return Bitcoin to an elongated upward trajectory. Relapsing toward good support in the $10,000 – $12,000 area is the downside risk.”
The FTX saga continues
FTX founder Sam Bankman-Fried posted a lengthy apology on Twitter on Thursday, outlining a number of problems at the company and announcing the closure of a sister company, Alameda Research. Later, FTX allowed restricted withdrawals, causing users to withdraw millions from the exchange
