During the 2017 crypto bull run, Bitcoin skyrocketed to an all-time high of $20,000. Meanwhile, fever surrounding the ICO explosion also helped Ethereum reach its highest price ever at $1,400. In 2018, Bitcoin and Ethereum set lows of $3,150 and $80 respectively.
Since the lows were set, Bitcoin and other “large cap” or “major” altcoins such as Litecoin, Binance Coin, and more have recaptured much of that lost value. But for one reason or another, Etheruem has lagged behind compared to the rest of the crypto market. However, the 200EMA acting as resistance could be what’s causing the smart contract-focused cryptocurrency to underperform, and once that resistance is broken, Ethereum is expected to outperform Bitcoin twofold over the next 24 months with a face-melting, parabolic rally.
Fireworks If Ethereum Can Break EMA200 Resistance, Is June 26 Significant?
When it comes to the catastrophic collapse of the crypto bubble, few digital assets fell as hard as Ethereum. Not only was it impacted by the bear market itself, which dragged the price of most cryptocurrencies down over 90% or more, it was further encumbered by the vast amount of ICO treasuries selling off the ETH they raised during the ICO boom.
The extended sell pressure took the total drawdown in Etheruem to as much as 94% of the asset’s value.
In recent weeks, as the market has picked up again – with Bitcoin more than doubling in value and other major market cap altcoins like Litecoin bringing investors nearly 600% in gains –Ethereum’s bullish performance has trailed behind the rest of the market.
According to crypto and forex analyst Jacob Canfield, Ethereum has been stuck below the 200EMA since June 26, 2018 – something that could help explain the lack of interest from buyers. Traders and analysts look to longer-term moving averages such as the 200EMA to help them determine if an asset is a buy. Below the 200EMA – it’s not. Above it – it’s a buy.