Ethereum Price Analysis: The Retest Phase Completes, Will ETH Rally To $500?
Today’s Ethereum (ETH) News
There is a stark contrast between current digital asset price performance and those of last week. While traders and the investment community are adamant that prices are cooling off, ETH’s performance is an exception. Firm and not budging to sellers, the coin is back trading above the main support and psychological price level at $290 and $300.
In a classic retest, the reaction at $300 is significant as far as ETH’s long-term price trajectory is concerned. But there is more to that.
Overly, the general theme in the development community is to make the platform as competitive as possible. That demand code improvement and several EIPs will subsequently be active during October’s Istanbul update.
Amends will be made following Constantinople blips that saw the postponement of some EIPs. Furthermore, there is the Atlantis hard fork from Ethereum Classic boosting dApp interoperability between the two chains. Add that to the increasing ETH transactions in the last few days and it is apparent that the investor community is confident of Ethereum and their prospects.
Although far from nudging EOS and Tron off the dApp activity list, these are primary hints of a shifting landscape.
Then again, the listing of five Ethereum tokens by eToroX, a special blockchain wing of eToro, is massive. Announcing the listing of BAT, OMG, Maker and two of their stablecoins, Doro Rosenblum, managing director of eToroX said:
“One of the main barriers to mass adoption of crypto assets is lack of access. Making these first 5 tokens available enables more people to transfer and hold them into a secure and regulated wallet. The next step will be adding more ERC-20 tokens to our exchange, which we plan to do in the near future.”
ETH/USD Price Analysis
1 ETH/USD =$1,686.0598 change ~ 0.35%
Presently, there is an across the board revival. Bearing close correlation with BTC price performance, ETH bulls are flowing back. In the last day the coin is up 6.9 percent but yet to reverse losses of last week.
Even so, the trend is bullish. Regardless of last week’s correction and the humongous bear candlestick of June 27, there is an opportunity for loading up in smaller time frames. Notice that there is a difference between the level of participation following the over-extension of June 26 and the subsequent correction of June 27.
From an effort versus result point of view, that means buyers are in control due to low participation-502k, on June 27. Since there has been a retest as prices react at the 20-day MA and $280-$300 support zone, aggressive traders can buy the dips with stops at June 27 low of $270.
On a more conservative angle, risk-averse traders waiting for clearer signals can initiate longs once there is a complete reversal of June 27 losses. Ideally, this snap back to trend should be with high trading volumes exceeding 502k. That will cement our bullish stance while simultaneously paving the way for $400 and $500.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.