Over the last 24 hours, Ethereum (ETH) has lost close to 2% in price and is currently trading at $176.
Ethereum had been on a positive trend prior to the massive drop it experienced last week. ETH touched $225 during mid-September before plunging to $150 at the end of last week – a 34% loss.
Will Ethereum recover soon? Or will it plunge towards yearly lows?
Let’s take a look at the chart for Ethereum.
A couple of weeks ago, I mentioned Ethereum’s EMAs were showing signs of resistance due to the volume profile showing some ceilings around these levels.
Ethereum was able to surpass all three EMAs for a brief moment, but 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.
I argue price would need some consolidation, and some fresh cash coming in, for ETH to rise above $200 again given the current volume profile.
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.
Recent news from the Ethereum Foundation can also be seen as a positive for the 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 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.