Crypto News & ICO Reviews
With a $50 billion market cap, Ethereum is the second largest cryptocurrency in the world. As it stands, development and adoption fundamentals are on point. That’s what advises our long term projection of the coin. In the short to medium term though, it’s likely that ETH would add on to its seven percent week over week losses.
Let’s look at the chart
From the News
At almost 75 percent down from their ATHs, a lot of weak hands are out of the market. By all accounts, that’s understandable. After all, most of these guys buying and selling at current prices are merchants or traders playing the market for some quick profit. What you should know though is the long term stand of blockchain, Ethereum as the genesis of smart contract and your investment style. All thing constant and as it stands, Ethereum is but a quality network. Then again, in the past week, there were some jolting endorsement from the SEC. Of course this is good news and it’s even better because Ethereum and ETH are truly decentralized meaning no one entity is set to rack in profits or arm twist the chain to their benefit.
That’s not the point though. It’s mundane to say the least. On-chain development is what carries the day and we can point back to different metrics to support this assertion. One of them stands on decentralization which by itself is the genesis of blockchain. Ethereum has more than 17,000 full nodes across six continents guaranteeing security. And that’s not inclusive of the 35 million addresses-and counting-registered on the network.
On the development front, Ethereum has one of the biggest developer community as 250,000 of them work via the EVM. We can gauge the activity on the network just by looking at the number of MetaMask users now at 1 million. Better still, the number of Truffle downloads is likely to exceed 600,000 by the end of the year. All these is the reason why Ethereum has an impressive 220,000 commits at GitHub and governments all over the world seeking to draw value from this community blockchain.
Ethereum (ETH) Technical Analysis
As it is, Ether prices are on a slide and technical formation hints of further losses. It’s easy to see and from candlestick behavior, price action is aligning according to week ending May 27 bearish engulfing candlestick which initiated reversals from April highs. The follow through wasn’t impressive but its last week’s events which saw prices collapsing below week ending June 3 and 10 double bottom at $500 with strong volumes. So even though there were pockets of higher highs in the daily chart last week, we shall treat the final candlestick as a bear break out and in that case ideal bear targets would be anywhere between $350 and $400.
Generally, the daily chart clearly shows that ETH prices are on a down trend. Regardless, if buyers are to reverse losses then we need to see movement above this tight $100 range. This therefore means bulls should print $550 or higher in the coming days. If not and sellers succeed in pressing below $450 minor support line or June 14 lows with strong volumes exceeding recent averages then our bear targets would be at $350 as per our general trade plan in the weekly chart.