Bitcoin may have had a bad time recently, but Ethereum (ETH) has fared much worse. ETH was trading at nearly $233 in early August but has since tanked about 25%.
Over the last 24 hours, Ethereum has lost close to 2% in value. At the time of writing, it is trading at around $178.
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, which now appear to be acting as strong resistance.
ETH wasn’t able to maintain its price above any of its EMAs during its dives in July and August – a clear sign of bearish momentum.
For the past month, I’ve been saying further negative price action could be on the way as the EMAs are now crossing to the downside, which typically results in a drop in price. There’s still room for more losses, and we could see ETH falling as low as $156 in the upcoming weeks unless there’s a change in investor mentality.
While I was expecting the market to start recovering in September, I may have to push that forecast back to the end of the year. With luck, the market will regain its momentum and Ethereum will climb back to its 100-day EMA, as retracements are expected during the early stages of bull markets.
In addition, ETH is near its bottom against BTC – as discussed in August – which may hint at a possible reversal in price soon.
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.
For now, investors have been storing their remaining value in BTC, as Bitcoin is 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.
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
If you want to find out more information about Ethereum or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started:
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.