Crypto policy shift to bring cycle-breaking wave of crypto investors: Novogratz

Ethereum price started a fresh decline below $4,220. ETH is now consolidating and might decline further if it breaks the $4,125 support zone.

• Ethereum failed to extend gains and declined below the $4,200 zone.
• The price is trading below $4,220 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $4,370 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it settles above $4,280 and $4,320.

Ethereum Price Is Now At Risk

Ethereum price failed to continue higher above the $4,500 zone and started a fresh decline, like Bitcoin. ETH price declined below the $4,420 and $4,350 support levels.

The bears even pushed the price below $4,200. A low was formed at $4,000 and the price recently started a minor recovery wave. There was a move above the 23.6% Fib retracement level of the downward wave from the $4,636 swing high to the $4,000 low.

Ethereum price is now trading below $4,220 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance near the $4,220 level. The next key resistance is near the $4,280 level.

The first major resistance is near the $4,315 level and the 50% Fib retracement level of the downward wave from the $4,636 swing high to the $4,000 low. A clear move above the $4,315 resistance might send the price toward the $4,370 resistance. There is also a key bearish trend line forming with resistance at $4,370 on the hourly chart of ETH/USD.

An upside break above the $4,370 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,450 resistance zone or even $4,550 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $4,215 resistance, it could start a fresh decline. Initial support on the downside is near the $4,125 level. The first major support sits near the $4,050 zone.

A clear move below the $4,050 support might push the price toward the $4,000 support. Any more losses might send the price toward the $3,880 region in the near term. The next key support sits at $3,750.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $4,125

Major Resistance Level – $4,320

Bitcoin has seen “buy the dip” mentions spike on social media after the price crash, but Santiment warns this could be a contrarian signal.

Social Media Users Are Calling To Buy The Bitcoin Dip

In a new Insight post, analytics firm Santiment has talked about how the market has been reacting to the latest plunge in the Bitcoin price. “One of the first things we like to look for is a sign of retailers showing enthusiasm toward buying the dip,” notes Santiment.

The indicator cited by the analytics firm is the “Social Volume,” which measures the total amount of posts/messages/threads appearing on the major social media platforms that make unique mentions of a given term or topic.

Santiment has filtered the Social Volume for Bitcoin-related keywords and terms pertaining to calls for “buy the dip.” Below is a chart showing the trend in the metric over the past month.

As is visible in the graph, the Bitcoin Social Volume has spiked for these terms, indicating that interest in buying the dip has surged among social media users. At the current value, dip-buying calls are at their highest in 25 days.

While this could sound like a signal that a rebound may be coming soon for the cryptocurrency, history has had many examples of the contrary. “Prices typically move the opposite direction of the crowd’s expectations,” explains the analytics firm. Considering this, the dip-buying hype could actually be a sign that more pain may be ahead for BTC before the bottom can actually be in.

“Once the crowd stops feeling optimistic, and they begin to sell their bags at a loss, this is typically the time to strike with your dip buys,” says Santiment. Another gauge for market sentiment is through the Binance Funding Rate, which is a metric that keeps track of the periodic fee that derivatives traders are exchanging between each other on the largest cryptocurrency exchange by trading volume.

The indicator turned sharp red just ahead of the latest plummet in the Bitcoin price, indicating that short positions became dominant on Binance. After the decline, however, traders changed their tune as the metric switched back to being green.

This trend would suggest that investors are hoping Bitcoin would rebound soon. “Ideally, for a notable price bounce to occur, we need to see a sustained period of shorts outpacing longs,” notes the analytics firm. As such, this could be another indicator to keep an eye on, as a flip into the negative for an extended phase may pave the way toward a bottom.

BTC Price

Bitcoin has been unable to make recovery from its crash so far as its price continues to trade around $112,700.

Bitcoin price extended losses after it traded below $114,000. BTC is now consolidating losses and might decline further to test the $110,500 support zone.

• Bitcoin started a fresh decline below the $114,000 zone.
• The price is trading below $114,000 and the 100 hourly Simple moving average.
• There is a bearish trend line forming with resistance at $113,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start another increase if it clears the $114,000 zone.

Bitcoin Price Starts Consolidation

Bitcoin price failed to stay above the $115,500 zone and started a fresh decline. BTC declined below the $115,000 and $114,000 support levels to enter a short-term bearish zone.

The decline gained pace below the $113,500 level. A low was formed at $111,557 and the price is now consolidating losses below the 23.6% Fib retracement level of the recent decline from the $117,920 swing high to the $111,557 low.

Bitcoin is now trading below $113,200 and the 100 hourly Simple moving average. Besides, there is a bearish trend line forming with resistance at $113,600 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $113,000 level. The first key resistance is near the $113,500 level and the trend line. The next resistance could be $114,000. A close above the $114,000 resistance might send the price further higher.

In the stated case, the price could rise and test the $114,750 resistance level or the 50% Fib retracement level of the recent decline from the $117,920 swing high to the $111,557 low. Any more gains might send the price toward the $115,500 level. The next barrier for the bulls could be $116,250.

Another Decline In BTC?

If Bitcoin fails to rise above the $114,000 resistance zone, it could start a fresh decline. Immediate support is near the $112,000 level. The first major support is near the $111,750 level.

The next support is now near the $110,500 zone. Any more losses might send the price toward the $108,800 support in the near term. The main support sits at $107,500, below which BTC might gain bearish momentum.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $112,000, followed by $111,750.

Major Resistance Levels – $113,600 and $114,000.

Solana (SOL) has entered a crucial zone as the price tightens near the $200 support level. The recent pullback in crypto markets, which pushed Bitcoin below $112,000, has also put pressure on Solana. Despite the bearish sentiment, bulls remain active around this key support.

Trading volumes have surged past $12 billion within 24 hours, indicating strong participation from both buyers and sellers. Analysts point out that a drop below $200 could trigger liquidity-driven volatility, but any decline might also serve as a springboard toward $250 in the near term.

The daily chart shows SOL consolidating within an ascending channel, with RSI cooling to neutral territory. If the midline support around $210 holds, a retest of $250 remains a possibility.

Tether Holdings is in talks with investors to raise as much as $20b, a deal that could value the stablecoin issuer near $500b and place it among the world’s most valuable private companies.

The firm is seeking between $15b and $20b through a private placement for about a 3% stake, Tuesday.

The transaction would reportedly involve new equity, not secondary sales by existing backers. Cantor Fitzgerald is acting as lead adviser on the process.

A valuation near half a trillion dollars would place Tether alongside companies such as OpenAI and SpaceX, an extraordinary mark for a lightly regulated crypto business, even as rivals expand and lower US interest rates threaten its windfall earnings. Circle, the closest public peer in stablecoins, was valued near $30b on Tuesday afternoon.

Tether didn’t respond to Cryptonews’ request for comment by press time.

Tether, issuer of the world’s largest stablecoin, is in talks with investors to raise as much as $20 billion, a deal that could propel the crypto firm into the highest ranks of the world’s most valuable private companies — Bloomberg (@business) Tether Monetizes Reserves While Maintaining Market Lead In Dollar-Pegged Tokens

Tether issues USDT, the largest dollar-pegged token, with a market value around $172b. USDC from Circle ranks second at about $74b. The company earns yield by parking reserves in cash like assets, including US Treasuries.

Tether reported $4.9b in profit for the second quarter in July. Chief executive Paolo Ardoino has said profit margins are about 99%. These figures are not subject to the reporting standards required of public companies.

Prospective investors have been granted data room access in recent weeks to assess the deal. Bloomberg reported the fundraising plans are expected to close by year end, depending on final terms and allocations.Data Room Opens As Investors Weigh Governance, Policy Risks And Growth Plan

The fundraise comes as Tether lays groundwork to return to the US. The company has outlined a plan for a US-regulated stablecoin and appointed Bo Hines, a former White House crypto official, to lead the effort.

Earlier this month, Tether announced USA₮, a dollar backed token intended to strengthen the role of the US dollar in digital markets. The push follows a shift in the US policy climate, with the GENIUS Act expected to expand the role of stablecoins and potentially allow banks, card networks and technology firms to issue their own tokens.

Tether has a history of run-ins with US regulators. In 2021, it paid a $41m fine to settle allegations that it misrepresented reserves. The firm had largely stayed out of the US before a recent change in tone toward crypto policy.

A successful raise would give Tether deep capital to defend market share and invest across infrastructure, compliance and product. It would also test investor appetite for private crypto champions at a time when rates are easing and yield on reserves may moderate, a shift that could weigh on future earnings.

The US Commodity Futures Trading Commission is looking to allow tokenized assets, including stablecoins, to be used in derivatives markets as collateral in a move supported by crypto executives.

CFTC acting chair Caroline Pham said on Tuesday that her agency will “work closely with stakeholders” on the scheme and is encouraging feedback on using tokenized collateral in derivatives markets until Oct. 20.

If implemented, stablecoins like USDC (USDC) and Tether (USDT) would be treated similarly to traditional collateral like cash or US Treasurys in regulated derivatives trading. Congress passed laws earlier this year regulating stablecoins, which have seen their adoption grow among financial institutions.