Bitcoin may have had a bad time of things recently, but Ethereum has fared much worse. Ethereum was trading at nearly $320 earlier in the month before the market tanked, with most altcoins suffering heavy losses.
Since last Wednesday, ETH has recovered slightly, with price increasing from $207 to around $213, representing a 3% increase.
Will we see a more substantial recovery soon?
Let’s take a look at the chart for Ethereum.
If we look at the chart above, we can see that ETH is trading below 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 in the month – a clear sign of bearish momentum.
I’m personally expecting the market to recover in the next month, as big retracements are expected in the early stages of bull markets. With luck, the market will recover its momentum and Ethereum will climb back to its 50-day EMA and 20-day EMA in no time.
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.
Volume-wise, it seems ETH price has crossed key levels to the downside which may be hard to recover from. On the other hand, ETH is protected by a massive wall at around $160-$170. When the altcoin market does recover, I believe ETH will be one of the very first coins to outperform Bitcoin (much like LTC did throughout the early stages of 2019).
Lastly, with thinner volumes, we usually see breaks to the downside. But if volume does return, we may see the opposite happen as well.
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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