- ETH/USD continues to move within the pennant formation
- Resistance at $85.00 limits a potential recovery.
ETH/USD is changing hands at $85.86. The coin has lost nearly 4.5% on a day-to-day basis and remained unchanged since the beginning of Friday. The third largest coin with a market capitalization of $8.9B shed over $400M of its value in 24 hours trading in a tight range with a bearish bias.
Ethereum’s technical picture
On the 4-hour chart, pennant formation has yet to be confirmed. ETH/USD managed to stay above $85.00 after a short-lived dip to the Asian low $84.94. It’s a good signal that the price may recover towards the upper line of the pennant currently at $91.50. However, a sustainable move higher looks unlikely as the area is reinforced by SMA50 (4-hour). We will need to see a major change in the market sentiments for the breakthrough to happen.
Both the Relative Strength Index (RSI) and Momentum indicator are flat, pointing out the market indecision and implying the continuation of rangebound trading during the recent hours. RSI stays in a neutral zone, which also supports the consolidation case.
The local support comes at $85.00. It is strengthened by the Asian low and the lower line of the above-said pennant. This area is likely to stop the sell-off for the time being, however, a forceful breakthrough will open the way towards the recent low of $82.15. Once below, the longer-term support area $60.00 and $50.00 will come into focus.
ETH/USD, 4-hour chart
Ethereum (ETH) Price Continues Downtrend? Traders’ Thoughts on the Possibility of Retest
Will Ethereum stay above the support line? Here’s what TradingView user think about Ethereum price forecasts
With altcoins going down, Ethereum follows the trend and stays close to the support line. Traders are wondering: how long ETH will stay on the current level, and will downtrend go on?
Here are a few opinions of users from TradingView – their ETH price predictions will give you a better understanding of the crypto market.
ETH broke through the accumulation channel
Ethereum (ETH) price chart from SpartaBTC
As we see on the chart, ETH broke through the channel of accumulation. In most cases, the price goes down to the width of the old channel.
But it is possible to stop on the trend line of the descending channel (yellow line). What do you need to do in such situation? Better observe, but not enter.👉MUST READ
Bull trend is gone
Like all the alts, ETH also took a very big hit past week which is not normal for a bull trend. This wave down was bigger that the waves up almost.
Not in %, but still, it should have never been this big. So what is very likely now, very small chance to see ETH simply recover this huge blow and go back to high 2x levels again. In the best case, we will consolidate between $180-250 for weeks and probably even a month or two. If we see a quick move above $240 in the coming days, than this theory might be wrong.
On the right chart, we can see it moving against a trend line. The longer it bumps against it the bigger the chances become that it will break up. With Bitcoin moving in a triangle, it has been good for alts past 2 days. But can’t judge if it’s a false hope or not.
However, even if it breaks up, there is still a very big chance it will be a fake breakout. Because the market of alts took such a big hit, that buyers won’t just sit and wait.
In short term, ETH looks like it doesn’t want to break up. A fail under $212 would make things shaky again and a break of $210 would probably invalidate the attempt to break that trend line. On the upside, it seems to be around $220.
Further downturn is possible
Finding ETH in a key area. Previous play shows a retracement support found, but it has also stopped dead in the resistance zone of the FIB on the 0.618 which could be a sticking point.
Don’t be shocked to see a further downturn here. It’s better to wait: ETH has already bounced high and on higher time frames, but there are not enough confirmations yet to state it will continue.
What’s in the long term?
It’s pretty clear now that we’re at the beginning of the next bull cycle. Watch the price chart: there’s an uptrend from the bottom of the market on December 15th, and so far it’s been respected. That hammer candle just nailed it in, 8 months later.
ETH looks like it will have 3 parabolic waves up to its current ATH. So at the time of writing, ETH looks like its entering its 2nd wave of accumulation until it spikes up again early October. That means the price should be hovering around $600 by the end of 2019.
January will be a quiet accumulation month while the developers finish up ETH 2.0, staking rewards, and scalability issues. From there, February through the summer will be a movie. We’ll see a $1200 Ether in April.
There will only ever be 120,120,120 ETH ever created, making it intrinsically one of the most valuable assets in the world.
Retail investors will buying up crazy amounts of ether after ETH 2.0 and staking is released end of January, there could be a supply shortage. Meaning there’s not enough Ether to go around.
Based on that alone, we should see a rise in price, but Ether has more. The 200MA is about to cross the 100MA this month, for the 1st time since the last bull run 2 years ago.
As Ethereum reinvents itself, large enterprises start to get on board
Investors are pouring a lot of money flow into bitcoin, but participants in the cryptocurrency market may be missing the real story: Ethereum is about to reinvent itself, and the impact could have far-reaching consequences throughout the enterprise world.
Released in 2015, Ethereum has grown to become the second-largest cryptocurrency by market capitalization. It differs from bitcoin in that it powers an increasingly popular smart contract system and facilitates the building of decentralized applications or DApps on the blockchain which appeals to developers. A recent report by Electric Capital found that Ethereum leads all cryptocurrencies in the number of active developers, with four times as many per month as bitcoin.
Despite predictions by a number of financial technology participants that it would overtake bitcoin, Ethereum has yet to live up to its promise. It has been plagued by issues of scalability, security and performance while its overall value has lagged far behind the premier cryptocurrency.
However, the Ethereum community has been working to introduce the first key phase of Ethereum 2.0 by early next year, a new version designed to reshape the protocol dramatically and resolve a number of its issues. An update on the current status of this highly anticipated rollout and an overview on the state of Ethereum was provided at the BuildETH gathering of developers, entrepreneurs and stakeholders in San Francisco on Friday.
It was less an attempt to sugarcoat the obvious and more about a realistic assessment of the hard work that lies ahead.
“Ethereum is still a very immature platform,” said Grant Hummer, co-founder of Chromatic Capital. “It’s pretty clear to me that we have a long way to go when it comes to mainstream user adoption. But I’m massively optimistic about Ethereum in the long term.”
Move to proof-of-stake
Ethereum 2.0 could go a long way toward resolving concerns about user adoption. The platform will move to the Casper Protocol, a highly complex method of digital transaction best explained here. The key differences are moving from proof-of-work, the bitcoin model, to proof-of-stake, which will improve efficiency and security. The other is the use of sharding, a form of database partitioning designed to speed processing and expand scalability.
Last month, Ethereum announced that the 2.0 integration of the proof-of-stake phase will launch on Jan. 3, 2020. The date was not arbitrarily selected: It’s a sly dig at the leading cryptocurrency as the date is also the 11th anniversary of the original bitcoin Genesis block.
A central question on attendees’ minds at BuildETH was whether the first-phase launch would stay on schedule. In a presentation on Friday, Alex Stokes of the Ethereum Foundation declined to address this directly. And in an exclusive interview with SiliconANGLE at the conference, Stokes was careful to say that Jan. 3 was the earliest possibility.
“That’s as a minimum,” Stokes said. “We wouldn’t have it before then. Even that date could change.”
Growing ties to enterprise projects
Ethereum’s fitful journey is running in parallel with another key development: Despite the platform’s issues, enterprises continue to get on board. Earlier this year, there was a report that Samsung Electronics Co. Ltd. was developing its own custom blockchain based on Ethereum, and in June the Polish bank Alior announced that it would use Ethereum to authenticate and secure clients’ sensitive documents.
Ethereum also sits at the center of major projects involving cross-industry blockchain collaboration. The Linux Foundation-hosted Hyperledger Project welcomed eight new large enterprises into its fold in June, including Microsoft Corp., Salesforce Inc., and the Ethereum Foundation.
Ethereum had been active in Hyperledger long before last month’s news. Hyperledger partneredearlier with the Enterprise Ethereum Alliance, chartered to develop open blockchain specifications for driving business interoperability. Alliance board members include JP Morgan, Santander Bank and Intel Corp.
“There was a need for something like Enterprise Ethereum Alliance that a company like JP Morgan could hang its hat on,” said Hyperledger Executive Director Brian Behlendorf.
Behlendorf’s organization has been actively engaged with Ethereum in other ways. Hyperledger Burrow, a modular blockchain client with a permissioned smart contract interpreter, was partly developed to the specifications of the Ethereum Virtual Machine.
“Mapping the world of Ethereum to the world of Fabric has been an interesting exercise,” Behlendorf said. “Enterprises are starting to realize there is this full spectrum.”
Focus on developers and DApps
Behind enterprise interest in the Ethereum blockchain is a developer community attracted to the open-source project development opportunities offered by Hyperledger and potential uses for decentralized applications. Ethereum developers remain the largest creators of decentralized finance or DeFi applications and DApps, based on research from Binance released last month.
The result is a steady stream of DApps making their way into use. OpenLaw automates legal contracts. Etherisc is a decentralized insurance protocol covering events like flight delays and hurricanes. And 0x allows developers to add exchange functionality for a number of use cases, such as book ordering or decentralized loans, by adding a few lines of code.
“Ethereum’s core developer community is quite strong,” Hummer told attendees on Friday. “They come so they can build cool stuff that they think will change the world.”
Much is riding on the release of Ethereum 2.0 as the cryptocurrency world moves uncertainly into 2020. It’s a tricky proposition to couple a new system onto an active public blockchain, yet it’s the kind of gamble that increasingly appears to be part of the fabric driving the cryptocurrency space. Hummer himself once described losing $1 million in a day and feeling “OK” about it all.
“In my opinion, investors are the least important part of the community,” Hummer said during BuildETH. “It depends on developers and users.”
Ethereum price analysis: ETH/USD bulls struggle at $228 – resistance level
- ETH/USD is currently trading around $222 in the early hours of Saturday.
- The SMA 50 curve has crossed over the SMA 20 curve.
ETH/USD had a bearish Friday, wherein the price fell from $226.40 to $221.60. In the early hours of Saturday, the price has gone up slightly to $22. The hourly chart shows us that there are two intra-day resistances at $226 and $224.50. After finding support at $216.35, the price was able to get up steadily to $222.
ETH/USD daily chart
The price has re-entered the 20-day Bollinger band after the bulls stepped back in to correct ETH/USD. The 50-day simple moving average (SMA 50) has crossed over the SMA 20 curve, which is a bearish signal. The relative strength index (RSI) indicator is trending around 39.50, right next to the oversold zone. The Elliot oscillator has had two bullish sessions after nine straight bearish sessions. The moving average convergence/divergence (MACD) indicator shows sustained bearish momentum.