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Ethereum’s Price Shaken by Joke About WETH Depegging

Validated Media

A joke about Wrapped Ethereum (WETH) depegging has briefly shaken the price of Ethereum and could catalyse a drop by ETH to the $1k support level.

Crypto-Twitter community members were left scratching their heads after a joke went viral about Wrapped Ethereum (WETH) losing its peg to the real Ethereum. The joke went on to state that the CEO of Wrapped Ethereum Foundation (WEF) has ‘frantically announced to raise and fill their $2 billion hole.’

Justin Sun Says He is Partnering with Vitalik Buterin to Invest $2B into WEF

The joke was also captured by Tron’s founder and former CEO, Justin Sun, who Tweeted that ‘as a humble member of the crypto industry,’ he and his best friend, Ethereum founder Vitalik Buterin, would invest the $2 billion needed to keep WEF afloat.

Source: @justinsuntron on Twitter

Ethereum’s Price Wobbles Due to Unrest in China

The WETH joke also coincided with the opening of the traditional markets in Asia that experienced heavy selling due to news of unrest in China against COVID restrictions.

The selling during the Asian trading session was captured by the team at Bloomberg, who stated that Ethereum dropped about 4%. They added that the crypto community was also worried about Wrapped Ethereum depegging, hinting that the Bloomberg team were unaware it was a joke.

Markus Thielen, head of research and strategy at crypto lender Matrixpor, told Bloomberg that WETH depegging was unlikely since an open-source smart contract governed its price.

Ethereum Shaken By The Joke of WETH Depegging and Could Lead to a $1k Retest

The fact that the Bloomberg team was unaware it was a joke leads to the conclusion that not too many crypto-Twitter community members knew it was a prank.

Consequently, it might have led to Ethereum dropping more than it should have during early morning trading in Asia. Furthermore, the joke still being treated as fact might add selling pressure that could result in a $1k retest by Ethereum.

A glance at the one-day ETH/USDT chart below reveals that the number two digital asset remains in bear territory below the 50-day (red), 100-day (yellow), 200-day (green) and 200-week (black) moving averages.

Source: TradingView

In addition, its daily MFI (green), MACD and RSI (red) indicate further weakness by Ethereum that could ultimately lead to a retest of $1k during the November close this week or sometime in early December.

However, as with all analyses on price action, crypto traders and investors are reminded that the above is not meant to be financial advice of any kind. Views expressed herein are those of the author and do not necessarily reflect those of Crypto Saving Expert.

Ethereum Justin Sun Vitalik Buterin
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