Unizen ‘CeDeFi’ smart exchange secures $200M investment from GEM

June 28, 2022 Coin Telegraph

<div>Unizen 'CeDeFi' smart exchange secures 0M investment from GEM</div>

Binance

The alternative investment group is banking on the “CeDeFi exchange” to shape the “future of finance” with a commitment that will bolster Unizen’s ecosystem.

Cryptocurrency exchange Unizen has scored a $200 million investment from private equity group Global Emerging Markets (GEM) which it will use to expand its business and its ecosystem.

Rather than receiving the $200 million in funding all at once, Unizen noted on June 27 that the investment will come in the form of a “capital commitment’, with part of the funding released upfront and the rest will be provided later based on achieved milestones.

Unizen did not disclose what particular criteria it had to achieve to receive the funding.

Unizen calls itself a “CeDeFi” exchange mixing features of both centralized exchanges (CEXs) and decentralized exchanges (DEXs), it runs on the BNB Chain, formerly called the Binance Smart Chain. It aims to attract both retail and institutional investors by finding and aggregating the most cost-efficient trades across CEX’s such as Binance and DEX’s like Uniswap.

GEM is described as a $3.4 billion alternative investment group that focuses on emerging markets, it selected Unizen with the aim to “have a hand in technology that will shape the future of finance.”

Unizen stated that it will use the investment to expand its team, shore up its innovation and marketing pipeline, and speed up the implementation of its trade aggregation ecosystem, also hinting at an upcoming investor token release update for early July though no further details were provided.

Another arm of Unizen is its ZenX Labs business, a CeDeFi incubator aimed at investing in and supporting decentralized projects by providing technical expertise and assisting with compliance.

ZenX Labs most recently said it was building and launching a small satellite into orbit aboard a SpaceX rocket with the mission funded by entirely by Dogecoin (DOGE), it is expected to launch sometime this year.

For GEM, it’s another investment into a blockchain-related business. In May through its digital asset investment firm GEM Digital Limited, it provided $400 million in funding to KaJ Labs to develop ‘Lithosphere’, a platform for cross-chain decentralized applications powered by artificial intelligence.

Ethereum price breaks out as ‘bad news is good news’ for stocks

June 24, 2022 Coin Telegraph

Coin Telegraph

Ether has rebounded by nearly 40% in the last six days despite persistent "bull trap" risks.

Ethereum's native token, Ether (ETH), gained alongside riskier assets as investors assessed weak U.S. economic data and its potential to cool down rate hike fears.

Ether mirrors risk-on recovery

ETH's price climbed up to 8.31% on June 24 to $1,225, six days after falling below $880, its lowest level since January 2021.

Overall, the upside retracement brought bulls 40% in gains, raising anticipation about an extended recovery in the future while alleviating fears of a "clean fakeout."

For instance, independent market analyst "PostyXBT" projected ETH's price to close above $1,300 by the end of June.

In contrast, analyst "Wolf" feared that bears would attempt to "push price back to $1,047," albeit anticipating a run-up toward $1,250 if ETH holds above its diagonal trendline support, as shown below.

$ETH 4h.
If the trend change is real, then we will soon find out. Bulls must hold this diagonal and see this type of scenario.
Bears, instead will try to push price back to 1047 pic.twitter.com/PRG9fD4iRz
— Wolf (@IamCryptoWolf) June 21, 2022

Ether has come under pressure from the Federal Reserve's hawkish policy in 2022. But those fears appear to be subsiding after the latest U.S. composite purchasing managers report, which shows the manufacturing activity fell to a five-month-low.

"Growth is coming down, maybe even sooner than expected," Esty Dwek, chief investment officer at FlowBank, told the Wall Street Journal, adding:

"That should allow the Fed to soften at some point."

*ETH/USD daily chart versus Nasdaq and S&P 500. Source: TradingView*

Still, Greg Peters, co-chief investment officer at PGIM Fixed Income, warned that the current rally in the risk-on markets might not last. He is unconvinced that "the central banks will stop tightening if economies slow."

Classic bullish reversal setup in play

Ether's rebound on June 24 also had it break above a falling resistance trendline that constitutes an "inverse head-and-shoulders" pattern (IH&S).

In detail, Ether has formed the IH&S pattern after forming three troughs below a common support level, called the neckline. Also, the middle trough comes out to be deeper than the other two, which are more or less of the same height.

Traditional analysts see IH&S as a bullish reversal setup, i.e., they resolve after the price breaks above their neckline support. As a rule, the price could rise by as much as the IH&S's maximum height after the breakout.

*ETH/USD four-hour price chart featuring IH&S setup. Source: TradingView*

As a result, Ether eyes an extended upside retracement toward $1,560 after breaking above its IH&S neckline, up nearly 33% from the current price. Interestingly, the IH&S profit target coincides with ETH's 200-4H exponential moving average (200-4H EMA; the blue wave) near $1,537.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

XRP price rally stalls near key level that last time triggered a 65% crash

June 24, 2022 Coin Telegraph

Altcoin

Macro risks and a long-term bearish setup continue to spoil XRP's bullish prospects.

XRP's ongoing upside retracement risks exhaustion as its price tests a resistance level with a history of triggering a 65% price crash.

XRP price rebounds 30%

XRP's price gained nearly 30%, rising to $0.36 on June 24, four days after rebounding from $0.28, its lowest level since January 2021.

The token's retracement rally could extend to $0.41 next, according to its "cup-and-handle" pattern shown in the chart below.

*XRP/USD four-hour price chart featuring "cup and handle" pattern. Source: TradingView*

Interestingly, the indicator's profit target is the same as XRP's 50-day exponential moving average (50-day EMA; the red wave).

*XRP/USD daily price chart featuring 50-day EMA upside target. Source: TradingView*

Major resistance hurdle

The cup-and-handle bullish reversal setup tends to meet its profit target at a 61% success rate, according to veteran analyst Thomas Bulkowski.

But it appears XRP's case falls in the 39% failure spectrum because of a conflicting technical signal presented by its 200-4H exponential moving average (EMA).

XRP's 200-4H EMA (the blue wave in the chart below) has previously served as a strong distribution signal. Notably, in April 2022, the token attempted to break above the said wave resistance multiple times, only to face rejections on each try; it fell 65% to $0.28 later.

*XRP/USD four-hour price chart featuring 200-4H EMA resistance. Source: TradingView*

The ongoing cup-and-handle breakout has stalled midway after XRP retested the 200-4H EMA as resistance on June 23. Now, the token awaits further bias confirmation while risking a price decline similar to what transpired after April.

XRP's overbought relative strength index (RSI), now above 70, also raises the possibility of an interim price correction.

XRP LTF breakdown underway

The downside scenario on XRP's shorter-timeframe chart comes in line with giant bearish setups on its longer-timeframe chart.

As Cointelegraph covered earlier, XRP has entered a breakdown stage after exiting its "descending triangle" structure in early May.

As a rule of technical analysis, its triangle breakdown should have it fall by as much as the structure's maximum height, which puts its downside target near $1.86.

*XRP/USD weekly price chart featuring 'descending triangle' setup. Source: TradingView*

In other words, another 50% price drop for XRP could happen by the end of July this year.

50,000,000 #XRP (16,249,045 USD) transferred from Ripple to unknown wallethttps://t.co/FalGAzxNxg
— Whale Alert (@whale_alert) June 23, 2022

Macro risks led by the Federal Reserve's hawkish policy further strengthen XRP's bearish bias. The XRP/USD pair has typically traded lower in tandem with riskier assets in 2022, with a correlation coefficient with the Nasdaq Composite sitting at 0.90 as of June 24.

*XRP/USD weekly correlation with Nasdaq. Source: TradingView*

A score of 1 means that the two assets moves in perfect sync.

Conversely, anticipations that Ripple would win the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) for "allegedly" selling unregistered securities could negate the bearish setups.

I’ve stated for over a year that many @Ripple and #XRP supporters underestimate the negative impact the SEC lawsuit has had. B/c Ripple has done well outside the U.S. and is hiring, etc., people say otherwise. But XRP must be deemed a non-security in the US to fulfill its promise https://t.co/oBmiTQOWfJ
— John E Deaton (203K Followers Beware Imposters) (@JohnEDeaton1) June 22, 2022

That being said, XRP could rebound toward $0.91 by the end of this year if the ongoing retracement continues any further. Interestingly, the token has bounced after testing long-term ascending trendline support, as shown below.

*XRP/USD weekly price chart. Source: TradingView*

The bounce has also followed XRP's weekly relative strength index (RSI) decline below 30 — an oversold threshold, which signals a potential buying opportunity.

Ethereum risks ‘bull trap’ after 25% ETH price rebound

June 23, 2022 Coin Telegraph

Analysis

ETH price faces headwinds from bearish technicals coupled with strong Ethereum investment outflows.

Ethereum's token Ether (ETH) could be entering a "bull trap" zone after rebounding back above the $1,000 mark from 18-month lows of $885.

Ether price paints a "rising wedge"

The first among these indicators is a "rising wedge," a classic bearish reversal setup that forms after the price trends upward inside a range defined by two ascending but converging trendlines. The wedge setup gains further confirmation if the trading volume drops alongside the rising prices.

Theoretically, a rising wedge resolves after the price breaks below its lower trendline and eyes a run-down toward the level at length equal to the maximum height between the wedge's upper and lower trendline

Ether has been forming a rising wedge since mid-June, as shown in the chart below.

*ETH/USD four-hour price chart featuring 'rising wedge' setup. Source: TradingView*

Hence, its interim bias appears to the downside, with a decisive breakdown below the lower trendline risking a decline toward the $870–$950, depending on where the breakdown begins.

That means a 15%–25% decline from June 13's ETH price.

$70M exits Ethereum funds

Ethereum's bearish case is supported by evidence of significant outflows from investment funds.

Notably, Ether-related investment products witnessed outflows worth $70 million in the week ending June 17, according to data fetched by CoinShares.

Notably, this was the eleventh-straight week of capital withdrawals, bringing the year-to-date outflow total to $458.6 million.

In contrast, Solana (SOL), one of Ethereum's top rivals in the smart contracts ecosystem, attracted $109 million in 2022 for its related funds. While Bitcoin (BTC) saw $480 million flow into its investment products.

CoinShares cited investors' worries over Ethereum's "Merge" to proof-of-stake as the primary reason behind its funds' poor performance this year.

Ethereum options strike price: $1K

ETH options' open interest on Deribit shows over $1 billion in notional for Ether, awaiting the expiry on June 24. Interestingly, these Ether options are major puts around the current price levels, with a concentration around the $1,000 strike, according to data from Coinglass.

*Ether options open interest by strike price. Source: Coinglass*

The June 24 expiration could potentially influence Ether's price action, primarily because it trades only 10% above the preferred strike price of $1,000. Additionally, a move toward $1,000 could trigger the rising wedge setup.

Polygon price jumps 60% in four days amid ‘pretty big’ MATIC accumulation

June 23, 2022 Coin Telegraph

Altcoin

MATIC price now eyes a 20% price rally as it undergoes an inverse head and shoulders breakout.

Polygon (MATIC) took a break from its prevailing bearish course, posting one of sharpest rebound in the crypto market this week.

Notably, MATIC's price has risen to $0.50 this June 23, four days after hitting $0.317, its lowest level since April 2021. This amounts to roughly a 60% gain, surpassing the performances of even Bitcoin (BTC) and Ether (ETH) in the same timeframe.

*MATIC/USD daily price chart. Source: TradingView*

Nevertheless, MATIC is still down significantly from its December 2021 high of $2.92, coinciding with the overall crypto bear market and a hawkish Fed putting pressure on risk-on assets.

MATIC "in a pretty big accumulation"

Meanwhile, some of its richest investors have been accumulating MATIC tokens despite the general downtrend, on-chain data suggests.

Notably, the so-called MATIC sharks and whales have been in accumulation, according to data provided by Santiment. That includes the tiers of Polygon token holders ranging from 10,000 to 10 million coins, which have "collectively added 8.7% more to their bags" since May 9.

$MATIC sharks and whales have been in a pretty big accumulation trend for about six weeks. The tiers of holders ranging from 10k to 10m coins held have collectively added 8.7% more to their bags in this timespan. https://t.co/oasCn72rxt pic.twitter.com/lm4au2fWkn
— Santiment (@santimentfeed) June 22, 2022

Interestingly, MATIC's price has fallen by 50% in the same period, underscoring that many whales are confident about its long-term recovery.

Inverse head and shoulders

From a technical point of view, MATIC/USD appears to be heading toward a new multi-week high.

In detail, the Polygon token has been breaking out of its "inverse head and shoulders," or IH&S pattern, since June 22. IH&S is a bullish reversal setup that forms after the price forms three troughs in a row while hanging upside down by a common support line called the "neckline."

Also, an IH&S's middle trough (the head) is deeper than the other two, called right and left shoulders, respectively. Ultimately, the setup resolves after the price breaks above the neckline, and, as a rule of technical analysis, rises by as much as the distance between the head and the neckline.

*MATIC/USD four-hour price chart. Source: TradingView*

As a result of its IH&S pattern, MATIC's price could rally toward $0.60 in June or early July, up about 20% from today.

Caution for MATIC bulls

Whale buying is not necessarily a bullish signal, and the IH&S pattern has a failure rate of 16.5%. So, a further price rally could also prompt whales to flip MATIC for a quick profit, given the tight conditions elsewhere in the cryptocurrency and traditional markets that could result in false recovery signals.

Additionally, the MATIC balance across all the crypto exchanges has jumped from 1.21 billion to 1.37 billion between May 1 and June 23, according to data from CryptoQuant, indicating additional potential sell-pressure in the near term.

*Polygon exchange reserves. Source: CryptoQuant*

Celsius token CEL rises 300% in one week amid a GameStop-like ‘short squeeze’ event

June 21, 2022 Coin Telegraph

CEL Price

The crypto lending platform's Insolvency risks puts CEL price at risk of a 70% drop.

The price of CEL, the native token of Celsius Network, has almost quadrupled since June 19 in what appears to be a frenzy stirred up by day traders.

CEL price short squeeze

CEL's price rose from $0.67 on June 19 to $1.59 on June 21, a 180% spike compared to the crypto market's 12.37% rise in the same period.

Notably, the rally started after PlanC, an independent market analyst, announced a $20 million bounty for anyone who could prove that the Celsius Network suffered a coordinated attack at the hands of a third party, which prompted the crypto lending firm to suspend withdrawals last week.

*CEL/USD daily price chart. Source: TradingView*

The announcement led to a frenzy on Twitter, with many accounts placing the hashtag #CelShortSqueeze in their bio and thus reflecting their intentions to target investors who have betted CEL's price would fall.

The hashtag was trending higher in the U.S. on Twitter. Meanwhile, internet queries for the keyword, "CEL short squeeze" also reached a perfect score of 100 between June 12 and June 18, according to data tracked by Google Trends.

*Internet queries for 'CEL Short Squeeze.' Source: Google Trends*

The "trending" hashtag and keyword hint that day traders bought CEL tokens en masse, thus pushing its price upward.

Thus, investors who were "short," i.e., those who borrowed and sold the token in anticipations of buying it back at a lower price, had to purchase back at a higher price instead to "cover" their bearish positions.

As a result, the so-called "short squeeze" proved successful, resulting in a massive CEL rally.

$CEL this actually might become the trade of the year. Shorters got REKT big time...

You can't make this shit up, that's why I love #Crypto #Celsius #CelShortSqueeze pic.twitter.com/A6OQwoQMhS
— DoopieCash® (@DoopieCash) June 21, 2022

The event served as a reminder of the popular GameStock stock frenzy in January 2021, wherein an army of Redditors profited by damaging the short positions of Melvin Capital and other hedge funds, causing billions of dollars of losses.

Insolvency risks sustain

Celsius Network, which held over $20 billion worth of digital assets under management last year, now risks becoming an insolvent organization. The reason is its inability to pay excessively high yields to clients (as much as 18%) on their crypto deposits.

In May, Celsius had only $12 billion worth of assets, almost half of what it held at the beginning of 2022, according to its website. The firm stopped disclosing its assets under management afterward.

CEL, a native currency inside the Celsius ecosystem for earning interest income and paying back debts, remains under downside pressure as it trades almost 84% below its peak level of $8 in April 2021.

The CEL/USD pair now eyes a retest of $1.95 as its range resistance level, according to the Fibonacci retracement graph shown below.

*CEL/USD weekly price chart. Source: TradingView*

While a successful break above the level could have CEL test $3.11 as its next upside target, a pullback, on the other hand, could drive the price lower toward $0.34, the current range support, down 73% from today's price.

GBTC premium hits -34% all-time low as crypto funds ‘puke out’ tokens

June 17, 2022 Coin Telegraph

Arthur Hayes

Dark days for crypto institutional investors as contagion fears are magnified and asset prices tumble.

The largest Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC), is now trading at its biggest ever discount to the spot market.

Data from on-chain analytics resource Coinglass shows GBTC shares down 34% versus BTC/USD on major exchanges as of June 17.

GBTC suffers in market downturn

Amid continued turmoil in DeFi spilling over to infect the crypto market, conditions have deteriorated for investors big and small.

The latest figures now show that institutions have definitively failed to avoid the contagion, and the already underperforming GBTC has hit new lows.

The GBTC premium, long a misnomer due to the fund’s shares in fact costing less than Bitcoin itself, is circling its lowest values in history. On June 17, these traded at 34.2% cheaper than the Bitcoin spot price (also known as net asset value or NAV).

A sharp downturn accompanied a similar dip on spot markets as BTC/USD retested $20,000 twice.

*GBTC premium vs. asset holdings vs. BTC/USD chart. Source: Coinglass*

As Grayscale pursues United States regulators for permission to convert GBTC to a Bitcoin spot price exchange-traded fund (ETF), conditions continue to look unfavorable for crypto institutional products amid heightened government attention in the wake of the Terra and Celsius meltdowns.

While the firm remains buoyant on the outlook, GBTC’s performance has not escaped commentators, who point the finger at regulators for what they see as inaccurate risk assessment.

Bitcoin spot ETFs remain outlawed in the U.S. due to investor protection concerns, allowing countries such as Canada and Australia to gain first-mover advantage.

Shares of $GBTC are now 66.9% lower than they were at the peak of 2017 despite $BTC trading 5% higher.

Make sure to thank Mr. Gensler for the protection everyone. pic.twitter.com/Q1cAw8hBtR
— Dylan LeClair (@DylanLeClair_) June 16, 2022

“Without ETF approval GBTC may go to -100% premium to NAV,” Vijay Boyapati joked this week.

Hayes names D-Day for crypto market bottom

This situation has not been helped by reported liquidity problems at multiple crypto funds with exposure to those already facing severe losses. Embattled Three Arrows Capital (known as 3AC), for example, is the largest GBTC holder with over 38.8 million shares.

As 3AC fails to meet margin call requirements this week, a marked gap is opening between GBTC and its competition. The ProShares Bitcoin Strategy ETF (BITO), the first U.S. approved ETF based on Bitcoin futures, has even added BTC to its assets under management in recent days.

For Arthur Hayes, former head of derivatives giant BitMEX, some of the biggest names in crypto institutional investing are thus facing a “River Styx” moment.

In his latest blog post on June 17, Hayes delivered a fresh blow to the fate of embattled projects Celsius, Terra and more.

“As this cohort of firms is forced to puke out any asset that is not locked in some long-term yield strategy, look out below,” he predicted.

“More indiscriminate selling of all liquid assets on their loan books will occur so these lending firms may return assets to their retail depositors.”

Having previously called a bottom of $1,000 for Ether (ETH) and $25,000 for Bitcoin, Hayes acknowledged that the reality had been much worse.

The upcoming July 4 holiday weekend, he added, should provide ideal conditions for a macro bottom, particularly as Q2 comes to a close.

“June 30 to July 5 is going to be a wild ride to the downside,” the blog post continues.

“My $25,000 to $27,000 Bitcoin and $1,700 to $1,800 Ether bottom levels lay in tatters. How low can we go? I believe we’ll find out on this fateful weekend.”

SOL price trending toward yearly low as Solana TVL drops $870M in three days

June 16, 2022 Coin Telegraph

SOL price trending toward yearly low as Solana TVL drops 0M in three days

Altcoin

DeFi contagion fears and bearish technicals mean additional downside pressure on Solana price.

Solana (SOL) tumbled on June 16 amid a broader retreat across the top cryptocurrencies, led by the Federal Reserve's 0.75% interest rate hike a day before.

Solana price rebound fizzles

Notably, SOL/USD plunged nearly 17% to $30 a token, wiping almost all the gains from the day before. The SOL price volatility liquidated almost $10 million worth of contracts in the past 24 hours across multiple crypto exchanges, data from Coinglass shows.

*SOL liquidation record since May 17. Source: Coinglass*

The latest declines come as an extension to SOL's broader correction, where it dropped by more than 90% after peaking out near $267 in November 2021. SOL also fell to its lowest level since July 2021 near $25.

In addition, a higher interest rate environment and the collapse of high-profile crypto projects like Terra have strengthened SOL's downside prospects.

SOL paints "ascending triangle"

Solana's pullback move on June 16 began after testing a horizontal trendline resistance near $34 that constitutes what appears to be an "ascending triangle" pattern.

Ascending triangles are continuation patterns, i.e., they tend to send the price in the direction of their previous trend. As a rule, breaking out of a triangle pattern in a bearish market, for example, sends the price down by as much as the structure's maximum height.

If SOL breaks below its ascending triangle's lower trendline then the bearish profit target will come below $22.50, as shown in the chart below.

*SOL/USD four-hour price chart featuring "ascending triangle" pattern. Source: TradingView*

Solana's downside target is about 25% below today's price and could be achieved by June. Nonetheless, if SOL bounces after testing the triangle's lower trendline as support, it would eye the $34-36 range as its interim upside target.

Massive SOL exit

Over 27 million Solana tokens have exited its smart contract ecosystem since June 13.

The total value locked (TVL) inside Solana smart contracts dropped to 74.65 million SOL (~$2.25 billion) on June 16, down 27% in the last three days, according to data tracked by DeFi Llama. That amounts to nearly $840 million of withdrawals from the ninth-largest blockchain ecosystem by market cap.

*Solana TVL performance since April 2021. Source: DeFi Llama*

Solend, a lending platform functioning atop the Solana ledger, witnessed a 26.5% decline in its TVL in the last three days and was holding 9.66 million SOL (~$290 million) as of June 16. Nevertheless, it remains the leading platform by TVL within the Solana ecosystem.

The outflows indicate that depositors do not want to keep their SOL locked in DeFi protocols, a sentiment common across the sector after Terra, an "algorithmic stablecoin" project, collapsed last month.

Contagion, another yield ponzi going down.

Seriously get your coins off anything like Celsius and BlockFi before they aren't your coins anymore.

LFG, 3AC, Celcius etc all spread risk to each other and you pay the price for it https://t.co/cemFCvAeAz
— Pentoshi Powell Jr (@Pentosh1) June 16, 2022

Therefore, Solana's path of least resistance remains skewed to the downside in the near term, particularly with no improvement in terms of macro and fundamentals.

Ethereum sell-off resumes with ETH price risking another 25% decline in June

June 16, 2022 Coin Telegraph

celsius network

Ether price is forming a bear pennant pattern whose profit target comes to be near $850.

Ethereum's native token Ether (ETH) slumped on June 16, suggesting that its relief rally coinciding with the Federal Reserve announcing it will hike the benchmark rate by 0.75%, is at risk.

Ether bulls trapped?

Ether's price slipped by 9.2% to around $1,120 per token a day after it rebounded by 23% after dropping to almost $1,000, its worst level since January 2021.

The ETH/USD pair's upside move, followed by a sharp correction, appeared in tandem with U.S. stocks, confirming that it traded like a risk-asset.

*ETH/USD and Nasdaq daily correlation coefficient. Source: TradingView*

The decline means that Ether has shed 77% of its value since November 2021 and is now trading below its "realized price" of $1,740, data from Glassnode shows.

*Ethereum realized price (USD). Source: Glassnode*

In addition, a higher interest rate environment adds more selling pressure, with investors leaving high-risk trades and seeking safety in traditional hedging assets, such as cash.

Investors' faith in cryptocurrencies has also eroded following the collapse of Terra, a $40 billion algorithmic stablecoin project, and lending platform Celsius Network's decision to halt withdrawals.

Atop that, Three Arrow Capital, a crypto hedge fund that oversaw nearly $10 billion in May 2022, reportedly faces insolvency risks. Fears about systemic risks have further limited the crypto market's recovery bias, hurting Ether.

ALERT: 3AC $250 Million $ETH Position Will Be Liquidated at ≈1000
— Market Meditations (@MrktMeditations) June 15, 2022

From a technical perspective, Ether's recent gains look like a bear market rally, which could be due to investors covering their short trades.

In detail, investors close their short positions by buying the underlying asset back on the market—typically at a price lesser than the one at the time of borrowing—and returning them to the lender. That prompts the asset to rally between large downside moves, but it does not signify a bullish reversal.

These minor rallies could be a bull trap for investors that mistakenly see the rebound as a sign of bottoming out.

On the other hand, experienced bears utilize the pump to open new short positions at the local price top, knowing that nothing has fundamentally changed about the market.

ETH "bear pennant" hints at more losses ahead

Ether's "bear pennant" on shorter-timeframe charts also supports a bull trap scenario.

Bear pennants are bearish continuation patterns that form as the price consolidates inside a triangle-shaped structure after a strong downside move.

As a rule of technical analysis, traders measure a bear pennant's profit target by subtracting the breakdow point from the height of the previous decline (called "flagpole"), as shown below.

*ETH/USD four-hour price chart featuring "bear pennant." Source: TradingView*

Thi puts the next bear target for ETH price at $850, down almost 25% from today's price.

Treasury Minister of El Salvador Dismisses Bitcoin Investment Losses, Calls Media Reports Biased

June 16, 2022 Bitcoin.com

Investment

Ether mirrors risk-on recovery

Classic bullish reversal setup in play

XRP price rebounds 30%

Major resistance hurdle

XRP LTF breakdown underway

Ether price paints a "rising wedge"

$70M exits Ethereum funds

Ethereum options strike price: $1K

MATIC "in a pretty big accumulation"

Inverse head and shoulders

Caution for MATIC bulls

CEL price short squeeze

Insolvency risks sustain

GBTC suffers in market downturn

Hayes names D-Day for crypto market bottom

Solana price rebound fizzles

SOL paints "ascending triangle"

Massive SOL exit

Ether bulls trapped?

ETH "bear pennant" hints at more losses ahead

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