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, the price of ETH has dropped 9% from $224 to around $205. Against its Bitcoin pair, ETH went down even further.
Will we see a substantial recovery soon or will ETH continue to struggle?
Let’s take a look at the chart for Ethereum.
Looking at the chart above, we can see that ETH is already trading below all its EMAS.
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 was able to break the key resistance level near its 100-day EMA around $220 last week.
Unfortunately, it seems the downtrend is now back in full force, as ETH has once again dropped below all its EMAs. The 20-day EMA (red) is also close to crossing the 50-day EMA (green) to the downside – another bearish signal.
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 regain its momentum and Ethereum will climb back to its 100-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 last week – 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.
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