The bulls are repairing the slight 3% decline on Ethereum in a volatile start to the week. However, the large multi-digit movement of the pound in two days is a problem. Indeed, rumors are circulating that the BoE may or may not extend its bond interventions in the UK bond market. The risk is the collapse of the bond market of this country. It should be noted that this market holds billions of pension funds which risk flying away in such a catastrophe.
ETH under pressure with GBP spillover
Ethereum price is experiencing headwinds from the UK bond market and its major currency pairs. Some of the pairs that impact Ethereum include EUR/GBP and GBP/USD.
Although the consequences are quite limited, the nervousness has decreased the most in certain alternative currencies. A situation contradictory to that of the big cryptos which have remained stable despite small declines.
It is to be expected that high liquidity will play an important role in this regard for the biggest cryptos, including Ethereum.
Ethereum (ETH): a trap for bulls?
Ethereum price could make a recovery move with pressure from the bulls. However, Ethereum remains under downward pressure from a descending trendline. Indeed, this red line has been directing the price of Ethereum very well since October 7th. Moreover, one could even say that a bearish triangle is forming. This figure serves as the historic pivot at $1243 as a base. Thus, with the entry of the bulls, one would expect an aggressive rise on Ethereum. Then, the price will be rejected by the red descending trendline. Finally, we will see a break below the base towards $1100 during the coming weeks.
We could still consider a rise, if the bulls manage to push the price above the red line. It could be a technical breakout with or without a possible catalyst feeding it. Thus, one would expect the bullish force to push the price towards $1400. This would mean a 7.5% increase. On top of that, the price could reach $1450 with the monthly pivot level and the 55-day moving average as the next resistance.
In sum, Ethereum has fallen over 3% in value this week. The bears are even trying to reach $1,243. And then the price of Ethereum is recovering partially with the entry of the bulls. We could then expect a slight rise towards $1400, then a fall reaching $1243. What seems to be a trap for Ethereum bulls.
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