Bitcoin may have had a bad time recently, but Ethereum has fared much worse. Ethereum was trading at nearly $320 about a month ago before the altcoin market tanked.
Since last Wednesday, ETH has recovered slightly, with price increasing 6% from $213 to around $224. Price reached a high of $238 earlier in the week before a minor correction.
Will we see a more substantial recovery soon?
Let’s take a look at the chart for Ethereum.
Looking at the chart above, we can see that ETH is trading between its 20-day EMA and its 100-day EMA – a key support level.
ETH wasn’t able to maintain its price above any of its EMAs during its dive earlier last month – a clear sign of bearish momentum. However, price has been able to break the key resistance level near its 100-day EMA around $220.
I’m personally expecting the market to recover in the next month – retracements are expected in the early stages of bull markets. With luck, the market will continue its momentum and Ethereum will climb back to its 20-day EMA and 10-day EMA in no time.
My next targets are between $230 and $240, where price should face some resistance.
In addition, ETH is near its bottom against BTC – as discussed on Monday – which may hint at a possible reversal in price.
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. 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.
My analysis is that BTC is still in a bull market, and soon enough, the top altcoins will be as well.
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.