ETH has now seen a price increase of around 17% from $178 in less than seven days.
Will it be able to consolidate these gains or will ETH come crashing back down to yearly lows?
Let’s take a look at the chart for Ethereum.
Last week, I mentioned Ethereum’s EMAs were showing signs of resistance, due to the volume profile showing some ceilings around these levels.
However, ETH has now powered through all its EMAs like a knife through butter. If ETH is able to form support above its 200-day EMA, we could see the coin recover up to around $230.
In this situation, it’s smart to wait for some confirmation that this pump has some legs. Until there’s a golden cross – when the 20-day EMA crosses the 50-day and 200-day EMAs to the upside – there’s still a chance price could come crashing back down.
There’s still room for more losses, and 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 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.
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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