Ethereum pounces as fears of recession emerge, investors rushing towards long contracts in BTC

US Federal Reserve Chairman warned of upcoming 'difficult times.' Long contracts on Bitcoin, Ethereum, gold, and oil surged following countries entering a recession.

Earlier last week, Jerome Powell, the Federal Reserve Chairman, warned that the coming times might be much more difficult than the current. On top of this, US President Donald Trump is keen on entering into a trade war with China.

Japan and Germany have already entered a recession. With countries continuing with nationwide lockdowns, the number of countries slumping into an economic recession might rise significantly.

 

Long contracts on BTC, ETH on the rise

Data from various crypto exchanges reveals that people are buying more long contracts on their favorite cryptocurrency contracts. Gold, which is perceived as an all-time defense against recession weapon, has significantly increased in value since the beginning of the year.

Crude oil prices, which had turned negative a few weeks back, are now trading at $30. 

 

ETHUSD Technical analysis and price prediction

The day’s range for ETH is $207.01 — $217.10. As of writing this article, Ethereum traded at $214.

Source: TradingView.com

The daily-timeframe for ETHUSD reveals that the Relative Strength Index, or RSI, is quite bullish currently. The MACD appears to have an upward crossover pretty soon.

The current macroeconomic trends point that the economy might be in this state for another few months. In that case, ETHUSD might cross well over $220. 

 

Is investing in Bitcoin or Ethereum the best thing to do now?

Bitcoin and Ethereum would undoubtedly appear to be exciting investment avenues now. And it is the retail investors who would jump in first. 

However, the greatest investing genius, Warren Buffett, feels liquid cash at hand now is more important than anything else. The most expensive company listed in the NYSE, Berkshire Hathaway, is sitting on a cash pile of $135 billion. And they are not making any investments currently.

If the wizard of Omaha is to be believed, the worst might be yet to come! Therefore, those who have already invested in any blockchain cryptocurrency like BTC or ETH should stay invested. And those who haven’t should stay away for some time now.

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