Ethereum Price Forecast: Bearish Outlook Strengthens For ETH As Binance Battles FUD Following Bitcoin Withdrawal Halts

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Ethereum (ETH) price is trading with a bearish bias after losing almost 3% in the last 24 hours. The Proof-of-Stake (PoS) token and second largest crypto by market capitalization is down a staggering 7% since the $1,995 high on Friday, May 5. With this price action, bears have canceled out all the ground covered during the first week of the month, with all signs pointing to a continued downtrend for the near term.

The downtrend for Ethereum price comes amid its conformity to Bitcoin (BTC) dominance. The king crypto displays a troubling price action, recording a 4% decline in 24 hours. With Bitcoin price plummeting, the largest exchange by trading volume, Binance has halted Bitcoin withdrawals for the second time in less than 24 hours, citing network congestion on the BTC network.

We've temporarily closed #BTC withdrawals due to the large volume of pending transactions.

Our team is currently working on a fix and will reopen $BTC withdrawals as soon as possible.

Rest assured, funds are SAFU.

— Binance (@binance) May 8, 2023

The exchange acknowledged the large volume of pending withdrawal transactions as their set fees did not anticipate the recent surge in BTC network gas fees.

In the latest development, however, the giant exchange has integrated the Bitcoin lightning network to help avoid similar situations in the future.

Binance Exchange Integrates Bitcoin Lightning Network Withdrawals

Several hours ago, Binance revealed its intention to suspend Bitcoin withdrawals again, citing a different reason from the first – a high volume of pending transactions.

$BTC withdrawals are now resumed on #Binance.

Pending transactions are being processed by replacing them with higher transaction fees.

We'll post another update once these pending transactions are all processed.

— Binance (@binance) May 8, 2023

Based on recent developments, the exchange reopened Bitcoin withdrawals, but to process the backlog of pending transactions, they had to replace them with higher transaction fees.

Citing an official announcement from Binance:

To prevent a similar recurrence in the future, our fees have been adjusted. We will continue to monitor on-chain activity and adjust accordingly if needed.

The Bitcoin Lightning Network stands among the most revolutionary inventions within the payments ecosystem. It solves challenges around sending money in a traditional way where centralized institutions charge ultra-high fees. Based on data from the analytical platform Glassnode, the Bitcoin Lighting Network is cheaper than every other payment mode.

Per the data, the media fee rate for sending value across the Lightning Network is 0.0029%, which is 1,000 times cheaper than the Visa and MasterCard payment modes. In a post by Dylan LeClair, a Bitcoin analyst, concerning the Nostr social media protocol, LeClair noted that the rate charged was notably lower than charges imposed by major credit card companies.

Binance Deciphers The Increased Outflows

Over the past 24 hours, Binance’s outflows have been making headlines, with recent data showing that the exchange saw its largest-ever withdrawal in history. This was with over 162,000 BTC leaving the platform.

As a result, Bitcoin price has also been declining, and with it, Ethereum price. At the time of writing, BTC is exchanging hands for $27,782, a daily drop of around 4%. This has further instigated doubts among community members on Binance’s solvency, causing them to label the ordeal a “big red flag.”

https://twitter.com/WolfOfPoloniex/status/1655389692660154368

Resultantly, Binance has come forward to put out the FUD, revealing that the outflows were movements between the exchange’s hot and cold wallets because of the BTC address adjustments.

We’re aware that some data are showing a large volume of outflows from #Binance.

This ‘outflow’ are actually movements between Binance hot and cold wallets due to the BTC address adjustments.

— Binance (@binance) May 8, 2023

The exchange has also called users’ attention to DefiLlama data concerning the controversial wallet movements.

Ethereum Price Weighed Down By Bitcoin Dominance

Ethereum price has slipped below the 50-day Simple Moving Average (SMA) at $1,876, opening the gate for further declines as sidelined investors around this level lacked interest in the largest altcoin. This comes as Bitcoin dominance continues to pull down ETH.

An increase in selling pressure could see the Ethereum price head lower, with the next target being the major support at $1,819. A decisive candlestick close below this level could solidify the downtrend for the Ethereum price, at least for the meantime.

In such a case, the next ideal target for the Ethereum price would be the 100-day SMA at $1,747. In the dire case, ETH could drop further to tag the $1,707 support level, denoting an 8% decline from the current position.

The bearish outlook for the Ethereum price is supported by the Relative Strength Index (RSI) position below the mean line. Its price strength at 46 favored the downside. Furthermore, this momentum indicator had just signaled a call to sell ETH when it crossed below the signal line (yellow band). If traders heed this call, the PoS token could lower market value.

Moreover, the Moving Average Convergence Divergence (MACD) was also tipping downwards and about to cross over into the negative zone. This, coupled with the red-hot histograms, showed that bears had the advantage.

Converse Case for Ethereum Price

On the flip side, if sidelined investors start to buy ETH, Ethereum price could correct and rise above the 50-day SMA at $1,876. This supplier congestion level could provide the ideal entry point for Ether bulls to facilitate the uptrend.

An increase in buyer momentum could set Ethereum price to tag the $1,916 resistance level and, in a highly bullish case, confront the Friday highs around the $2,012 resistance level. Such a move, which would constitute a 15% climb, would invalidate the bearish thesis, clearing the skies for further gains.

Ethereum Alternative

While Ethereum price continues suffering in the wake of Bitcoin dominance, consider yPredict, the trending AI-driven free forever financial predictions market that has hit $689,000 in its presale sales for the $YPRED token. The milestone has been achieved as the project cruises through stage four of eight, marking a watershed moment for community members.

📊 Master the crypto market with yPredict! 🚀 Offering AI-driven price predictions, sentiment analysis, and more for thousands of coins, including volatile new altcoins. 🌟 Get ahead of the game at https://t.co/O3DpDau9AR 💰 #cryptocurrency #fintech #AI #YPRED #CryptoTwitter pic.twitter.com/NT7o1soR6h

— yPredict.ai (@yPredict_ai) April 30, 2023

Notably, interested investors should take advantage of the current token price of 0.01111 for the current stage, as there is only $423K left to be raised until stage five, where the AI-driven token will be auctioning at $0.02. Early entrants are poised to make an 80% profit with these numbers.

Furthermore, investors can already see the promise and value proposition that the yPredict ecosystem represents, with a 140% return once the token lists o exchanges at a floor price of $0.12. According to expert analysts, yPredict will become the next AI coin to record 10X gains, and while there are many prediction markets in the cryptocurrency scene, none provides the full picture of artificial intelligence-powered actionable insights like what is presented in the yPredict ecosystem.

The yPredict.ai ecosystem stands out for its unique use of artificial intelligence and machine learning (AI/ML) to give analysts and traders an advantage in the market.

Solving The Problem Of How To Get An Edge In Financial Markets

The hallmark of yPredict is to solve the problem of how to get ahead of the algo trading that has since become the dominant activity in the markets of most asset classes in the financial market.

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— yPredict.ai (@yPredict_ai) April 29, 2023

Unfortunately, automated systems effectively cloak most of the data for financial assets. This is far from being an efficient market-based sound knowledge existing, where every participant enjoys equally timely access to accurate market data, among other information.

To sum up this occurrence, market orders occur at machine speeds, which may otherwise seem impossible for the common retail traders by means of previously trusted and historically developed methods for analysis.

To solve these concerns, yPredict is developing new types of fully AI-powered trading pools. Such tools provide a means for eliminating most of the noise from the market, which delivers a stronger basis for profitable decision-making to market participants.