In all angles, Ethereum presents itself as a long term investment. We can gauge its network quality by the level of community participation, adoption and of course price. Even though prices are down 75 percent from their ATHs, we might see a recovery in the coming days. That’s if June 14 candlestick anchor prices. However, before that happens, there should be movement that breaks above the recent $100 trading range with triggers at $550 to the upside and $450 to the down side.
Let’s have a look at these charts:
From the News
As EOS grapple with deflating bugs weeks in week out, Ethereum continues to ramp up support across the globe. In the words of the SEC, the US regulatory agency, Ethereum just like Bitcoin are the only two coins they consider utilities. This means according to their analysis, ETH and BTC are the most distributed and decentralized network in the world and as such, no one entity can claim control of the network for profit. And well, there are strong supporting statistics to back these truths.
One is the sole fact that there are more than 17,000 full nodes within the Ethereum network that are spread all over the globe. This level of node distribution cutting across different geographies means this smart contract platform is also one of the most secure in the world.
Talking of development, data from Consensys shows that there are more Truffle, Ethereum Developer App, downloads averaging 50,000 a month than they were when Ethereum prices peaked late last year. If we keep up with this projection, it means by end of 2018, we expect more Dapps to be built and it could potentially double the number of those that came to existence in 2017. These statistics alone goes on to show why Ethereum is long term bullish. It’s the potential of the network alone that makes it superior in almost all aspects.
This projection isn’t inclusive of the total number of ERC-20 tokens that continues to be built on Ethereum. As it stands, more than 87 percent of circulating tokens that raised more than $5.5 billion through ICOs all run on the Ethereum blockchain. All things constant, that’s a mark of credibility and trust on the platform and you rarely find that even in competing platforms.
Ethereum (ETH) Technical Analysis
Though fundamentals stands out especially from the development and adoption planes, prices are gliding towards multi quarter lows. After last week’s attempts of higher highs-check out that long lower wick signaling buy pressure, bulls are finding resistance for further upsides. After all, considering the strength of bears as the chart shows, it would require extra-ordinary effort for bulls to slow down this bear momentum.
As it stands, potential support lies at around $400 which also double’s up as April lows. Of course, any form of mid-range support at $450 or last week’s lows might is positive for buyers but then again, that will mean waiting for further confirmation as our previous forecasts demands. Ideal buy triggers are at last week’s highs at $650, a zone of double top and minor resistance in our analysis.
Here, albeit hints of bull pressure following that endorsement from the SEC, there is no buy follow through. This is definitely negative for buyers eager to reverse some of their losses and perhaps edge towards our conservative bull trigger at $630.
Before then, we are neutral all courtesy of this horizontal consolidation absorbing momentum. Because prices are still trending inside June 14 high lows, we remain neutral waiting for a break either way. Considering the general set up in the weekly chart and recent lower lows which is by the way aligning with bear trend, break below $450 is likely in the coming days.
If that happens, our buy projection would be invalidated and in that case, we would initiate shorts with stops at $550 and target $350.