I don't want to offend any Ethereum enthusiasts out there, which I imagine are a lot of people but as of lately Ethereum has been one of the worst performing coins in this bear market. It had peaked at around 1425$ and currently it is at 412$ - that is a 72% drop ! However I am waiting for ETH to show some strenght for a long time now and I think that we finally might see some price action to the upside !
First of all let's take a look at the ETH/USD daily chart
We can clearly see that ETH has found some serious support at the 380$ level and it has also based. In addition to this we should take a look at the ETH/BTC chart which tells us the rest of the story
For the first time in a long time ETH is performing better than Bitcoin for more than few days. I think it is obvious that at the moment people like Ethereum from these levels. Of course there are some negatives we should consider before making a decision.
What I don't like
- Ethereum is very extended from the moving averages and this might be just a "catch up" rally
- Ethereum still has not broken the 420$ solid resistance
- Volume is very thin on the buy side
- A "death cross" will happen in 1-2 days
To be honest before I enter such a trade I would wait at least for ETH to brake the 420$ resistance and to stay above it. Another important thing to consider is the Moving Averages - I would wait until ETH catches up with the short-term ones and the way it behaves once it does will be a good indicator.
What is your opinion on ETH and the crypto market in general ? Let us know in the comments
