Across the financial sector, the day’s talk revolved around China and the continued crackdown by regulators on the crypto market and assets like Bitcoin and Ethereum, owners are wondering if there could be a spillover and additional FUD that over time In-game recreation could occur.
But the Tencent chart itself suffered a devastating slump today that should worry the Ethereum bulls due to a terrifying comparison between the two. To make matters worse, knocking on wood doesn’t help, as the Lumber Futures chart could help shed some light on what the next target might be for the top-rated altcoin.
How the crackdown by Chinese regulators is hurting crypto and Chinese stocks
The markets have been in an explosive upward trend since Black Thursday last year. Bitcoin more than triple its previous all-time high, Ethereum almost four times as strong, and even the stock market is more than double what it was more than a year ago.
Cryptocurrencies corrected hard a few months ago, but the stock market continued to climb. The US stock market still is, although the rally to new record highs has paused since today – a pause for fear of an entirely different region.
Related reading | TA: Ethereum cuts profits why ETH could resume its rally
In addition to the country banning bitcoin mining and having other dramatic effects on crypto prices, China has instituted widespread regulatory action that has crippled certain stocks in the country. Tencent, for example, has fallen more than 10% in the past 48 hours alone. Such a decline is almost unheard of in the stock market, while this type of move by crypto standards is usually a walk in the park.
An equal move in an altcoin like Ethereum could be a lot worse in comparison.
Let’s hope Ethereum doesn’t fall victim to a similar fate | Source: ETHUSD on TradingView.com
Ethereum chart comparison makes bulls knock on wood
Comparing it to Tencent is exactly why crypto cops need to be concerned and fearful. The top altcoin on which the rest of the industry is built shows a structure very similar to Tencent prior to the massive collapse.
What’s worse is the fact that almost all price action over the past three years looks very similar between the two assets. Placing the two assets next to another once-trending asset that has since collapsed paints a chilling picture.
Related reading | Why the next crypto bear market will be the worst yet
Random length wood futures have a graph showing such a dire drop that if the same happened in Ethereum the price per coin would drop to around $ 3725. The three charts appear to have bottomed at about the same level and date, about the same level and date, so why shouldn’t they continue to behave in a similar fashion?
I don’t like the similarities in these charts. Could #Ethereum follow this path? pic.twitter.com/filaaaFJMa
– Tony “The Bull” Spilotro (@tonyspilotroBTC) July 27, 2021
What do you think Ethereum is in trouble?
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Featured image from iStockPhoto, charts from TradingView.com
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