In the entire financial field, the topic of the day revolved around China and the ongoing regulatory crackdown involving the crypto market and assets such as Bitcoin and Ethereum. Holders want to know whether there will be spillover effects and Additional FUD This may play a role in the ongoing recovery.
But it is the Tencent chart itself that suffered a devastating collapse today, and due to the terrible comparison between the two, the Ethereum bulls should be worried.To make matters worse, knocking on wood does not help, because the timber futures chart can help clarify what the next top-ranked goal might be Altcoins.
How China’s regulatory crackdown hurts cryptocurrencies and Chinese stocks
Since Black Thursday last year, the market has been in an explosive upward trend. Bitcoin has risen more than three times its all-time high, Ethereum is almost four times that, And even the value of the stock market is more than twice what it was more than a year ago.
A few months ago, there was a serious correction in cryptocurrencies, but the stock market continued to climb. This is still the case for the US stock market, although as of today, the rebound to new highs has been paused-due to fears related to a completely different region.
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In addition to the country’s ban on Bitcoin mining and other actions that have caused serious damage to the price of cryptocurrencies, China has also been carrying out extensive regulatory crackdowns, causing some stocks in the country to paralyze. E.g, Tencent fell more than 10% Only in the past 48 hours. This kind of decline is almost unheard of in the stock market, and according to cryptocurrency standards, this type of move is usually a walk in the park.
A move of the same size Altcoins In contrast, Ethereum may be worse.
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
The comparison with Tencent is exactly the reason for the crypto bull Need to worry and fear. Top Altcoins Other industries build on it, showing a structure very similar to Tencent before the massive collapse.
To make matters worse, almost all price movements of these two assets over the past three years look very similar. Adjacent these two assets to another asset that was once all the rage but has collapsed further paints a terrifying picture.
Related Reading | Why the next crypto bear market will be the worst
Chart display of random length timber futures Show a drop so annoying, If the same thing happens in Ethereum, it will require every price coin Back to around $3,725. These three charts seem to have bottomed near the same level and date, and peaked near the same level and date, so why don’t they continue to operate in a similar manner?
-Tony “Bull” Spilotro (@tonyspilotroBTC) July 27, 2021
What do you think, is Ethereum in trouble?
Featured image from iStockPhoto, Charts from TradingView.com