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Ethereum [ETH] Price Analysis: Coin makes a return trip to the bear’s market

Priya

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Ethereum [ETH] Price Analysis: Coin makes a return trip to the bear's market
Source: Unsplash

Ethereum [ETH], a leading cryptocurrency in the market, continues to struggle to regain its position in the market. The coin Ethereum lost its position to is XRP, which is now seen placed in the second place by market cap.

According to CoinMarketCap, at press time, Ethereum was trading at $107.83 with a market cap of $11.29 billion. The coin has a trading volume of $2.53 billion and the coin has seen a slight rise of over 1% in the past seven days.

1-hour

Ethereum one-hour price chart | Source: Trading View

Ethereum one-hour price chart | Source: Trading View

In the one-hour chart, the coin demonstrates a downtrend from $113.57 to $109.30 and is seen going further south only to settle at $106.47. The uptrend for the cryptocurrency is recorded from $103.29 to $105.60. The immediate resistance for the coin is at $106.84 and the strong resistance is at $109.72. Whereas, the immediate support is at $105.07 and the strong support is at $103.24.

Parabolic SAR is currently showing a bearish wave for the cryptocurrency as the dots have aligned above the candlesticks.

Chaikin Money Flow is also on similar terms as the indicator is picturing the money flowing out of the market.

Bollinger Bands are forecasting a less volatile market for the cryptocurrency as the bands are seen close to each other, making less space for price movements to take place.

1-day

Ethereum one-day price chart | Source: Trading View

Ethereum one-day price chart | Source: Trading View

The one-day chart shows that the downtrend for the cryptocurrency is outlined from $317.55 to $115.91 and further down to $109.30. The uptrend is pictured from $83.74 to $104.01 and continues to rise till $105.94. The coin’s immediate resistance is at $128.06 and the strong resistance is at $156.01. The immediate support for the coin is at $103.98 and the strong support is at $82.81.

Klinger Oscillator is showing a bearish market for the coin as the reading line is below the signal line after a crossover.

MACD is also forecasting a bearish weather as the moving average line is below the signal line and the histograms are also seen painted in red.

RSI is showing that the buying pressure and selling pressure for the coin are still evened out in the market.



Conclusion:

The coin has made a return trip to the bear’s market. This is evidenced as the support of the majority of the indicators from both the one-hour chart and one-day chart is towards the bear.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

News

Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021

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Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
Source: Pixabay

With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.

 

CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.



Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.





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