Bitcoin may have had a bad trading week, but Ethereum has fared much worse. Since last Wednesday, ETH has lost about 40% of its total value, going from close to $320 to $194 before recovering back to the $200 region.
At the time of writing, the market has tanked and most altcoins are suffering heavy losses. Will we see a recovery soon?
If we look at the chart above, we can see that ETH is trading below its 200-day EMA – a key support level. ETH wasn’t able to maintain its price above any of its EMAs during its dive – a clear sign of bearish momentum.
I’m personally expecting the market to recover sometime this month, however. Big retracements are expected in the early stages of bear markets. With luck, the market will recover its momentum and Ethereum will be back to its 50-day EMA and 20-day EMA in no time.
Recent news from the Ethereum Foundation can be seen as a positive for the beleaguered 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.
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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As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.