Over the last 24 hours, Ethereum (ETH) has experienced a substantial downfall – around 4%. Since last week ETH dropped from $179 to $166, about 8%.
Although it seemed the altcoin was putting out some higher lows, the trend has now reversed.
As mentioned last week, Ethereum was attempting to recover from a downtrend which saw the coin suffer heavy losses towards the end of last month. ETH touched $225 during mid-September before plunging to $150 – a 34% loss.
Will Ethereum’s recover? Or will ETH continue to plunge towards yearly lows?
Let’s take a look at the chart for Ethereum.
Over the course of September, Ethereum was seemingly well on the road to recovery following a tough summer, with the price finally rising above all three of its EMAs for a brief moment.
However, accompanying the wider market downturn towards the end of the month, it has since come crashing back down. ETH has been attempting to consolidate and recover since the market meltdown but is struggling to hold on to any gains.
Last week I mentioned how the support zone was near $170 and this week that said support has been broken. Not terrific news for ETH holders. I argue the same level now should act as resistance.
Of course, I could be wrong, and the markets may start pumping before the Bitcoin halving or the release of ETH 2.0 in January 2020.
Earlier this month, during a major crypto-conference, Ethereum founder Vitalik Buterin mentioned how most things are finalised in regards to ETH 2.0 and clients are talking to each other already. I, therefore, personally believe we can expect a testnet release of the new Casper PoS models by the first half of 2020 at the latest.
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 is, 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.
Not only Germany and France both flexed their muscles in an attempt to ban the social media platform’s currency, but also some of the key partners like Mastercard, PayPal and eBay left the association.
For now, investors have been storing their remaining value in BTC, as Bitcoin is still 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.
For now, I would aim at making minor entries while the price is below all EMAs. Volume seems to be consolidating since last week and is now close to $7.6 billion – a sign of recovery.
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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