Over the last 24 hours, Ethereum has lost over 5% in price and is currently trading at $196.
Ethereum had been on a positive trend until this week, rising from around $170 at the start of the month to a peak of $224.
However, ETH has now experienced a drop of around 8% from $213 in less than seven days.
Will Ethereum recover soon? Or will ETH plunge towards yearly lows?
Let’s take a look at the chart for Ethereum.
ETH chart, by Trading View
Last week, I mentioned Ethereum’s EMAs were showing signs of resistance due to the volume profile showing some ceilings around these levels.
Ethereum was able to surpass all three EMAs for a brief moment, but has since come crashing back down. I also mentioned last week that if ETH is able to form support above its 200-day EMA, we could see the coin recover up to around $230. We almost got there.
Unfortunately, the cryptocurrency plunged from $224 to where it sits now in just a few days.
There’s still room for more losses as well. We could see ETH falling back to $190 and below in the upcoming weeks unless there’s a change in investor mentality and some serious cash comes into the altcoin market.
I argue price would need some consolidation, and some fresh cash coming in, for ETH to rise above $270 given the current volume profile.
We also shouldn’t forget that the recent pump was mostly due to Bitcoin holders shifting gains to their favourite altcoins. I doubt the alt-season is upon us just yet.
Until Bitcoin breaks some serious levels, around $12,000 and then $14,000, I don’t see altcoins pumping to new yearly highs.
Of course, I could be wrong, and the markets could start pumping way before the Bitcoin halving or the release of ETH 2.0 in January 2020.
As I mentioned last week, ETH hit its bottom against BTC and bounced, which may have pushed its USD price as well.
Recent news from the Ethereum Foundation can also be seen as a positive for the coin, as it is expected to have at least a testnet of the new Casper PoS models ready by the first half of 2020.
With the upcoming Libra project – a currency envisioned by the Facebook team – there will be extra pressure on Ethereum to develop as both have similar goals in terms of smart contract functionality. That’s of course assuming that Libra is even released at all, as Facebook may not move forward with the project given the recent pressure from governments and regulators.
For now, investors have been storing their remaining value in BTC, as Bitcoin is still close to 90% domination according to some sources.
My analysis is that BTC is still in a bull market, and soon enough, the top altcoins will be as well.
About Ethereum
Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum. Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy in to his proposal.
More Ethereum news and information
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