At the time of writing, Ethereum (ETH) is trading at around $141 following a 20% drop in price since last week.
The world’s second-largest cryptocurrency by market cap has been consolidating to the downside over the past few days, as most altcoins have been doing lately.
As mentioned last week, Ethereum was on a clear consolidation path during mid-November. However, the overall market has dipped due to a massive Bitcoin move to the downside.
Despite a sizeable pump towards the end of October following Bitcoin’s 40% jump in the space of 24 hours, it now seems that the downtrend has officially returned.
Last week I asked whether ETH could drop below $160 as there was reasonable support around this level. Ethereum not only went considerably lower, but there’s a high probability it could drop even further.
Let’s take a look at the chart for Ethereum, courtesy of TradingView.
During the second half of the year, ETH has been attempting to consolidate and recover following the huge market downturn in the summer.
Over the course of October and November, ETH has been making a number of lower highs – not a great sign for the bulls. Up until the end of October, it was struggling to hold on to any gains.
Then, out of nowhere, a pump pushed price towards the 50-day EMA, blasting through a key volume resistance wall near $170 just a few weeks ago.
Price went from $180 to over $220 in just a couple of days, representing an increase of over 18%.
The current ETH/USD trend
However, the downtrend has returned and ETH is currently back below all its EMAs, and price is looking likely to fall further.
For now, I would aim at making minor entries while the price is still below the 200-day EMA. Volume-wise, ETH is hovering close to $7.5 billion. At the moment, sellers are clearly in control, which means volatility to the downside can be expected.
On a more positive note, earlier this month, during the major crypto conference Devcon 5, Ethereum co-founder Vitalik Buterin mentioned how most things are finalised in regards to ETH 2.0 and clients are talking to each other already. I therefore personally believe we can expect a testnet release of the new Casper PoS models by the first half of 2020 at the latest.
Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum. Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy in to his proposal.
More Ethereum news and information
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As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.