Ethereum to See Some Sunlight After Bloodbath
Over the past few weeks, Ethereum has been absolutely slammed. Not only has its price fallen alongside Bitcoin, but it has been underperforming the market leader by dozens of percent.
But, data shows that the cryptocurrency may soon be ready to embark on some form of recovery. York780, a well-known trader on Twitter, recently noted that the one-week stochastic recently flipped bullish on Ethereum’s one-week chart, which comes after a two-month-long bear trend that originated in early-July.
The stochastic is an oscillating technical indicator that tracks trends, implying that bulls are back in control of Ethereum.
This isn’t the only technical sign currently signaling that Ethereum may soon recover. Nik Patel, a popular cryptocurrency analyst on Twitter, recently wrote in his blog that ETH may be ready to express some short-term bullish price action, despite flashing mixed signals across multiple trading pairs and time frames.
“Now, however, price has printed a swing-failure at 0.0175 BTC, along with a strong bullish divergence. Moreover, yesterday’s Daily candle closed as a bullish engulfing. There is rather a lot here to get short-term bullish about, despite the looming trendline resistance.”
Discussing the Ethereum/USD pair, he claimed that if the cryptocurrency manages to close $190, a strong move higher could ensue.
There is one worrying thing, though: the asset recently saw its 50-day moving average looking cross under the 200-day moving average on the daily. This comes in spite of the golden cross seen earlier this year. Death crosses have historically preceded massive downturns in the prices of not only Ethereum, but a swath of traditional assets too.
Ethereum’s fundamentals aren’t looking too hot, however.
Samson Mow, the prominent chief security officer of Bitcoin development and infrastructure firm Blockstream, recently took to Twitter to lambast the project. In a fiery tweet, the industry entrepreneur wrote that he believes “Ethereum is a technological dead end”, claiming that the “more it’s used, the faster it dies.”
Mow was making his comments in reference to a report from Bloomberg, which claimed that Ethereum is starting to see its network clog once again, despite the fact that the cryptocurrency is still some 80% down from its all-time high of $1,400.
The funny thing is, many have taken this criticism as a sign that Ethereum is bottoming at last. As reported by this outlet previously, Patrick McCorry, an industry commentator and admin at fintech-centric PISA Research, argued that “Ethereum feels like Bitcoin in the midst of 2015”, having sunk from $1,400 to $175 in a massive downturn amid growing “FUD”, even with a “consistent flow of developers and startups just building (alongside ever-increasing attention from researchers).”
In 2015, of course, Bitcoin bottomed and then surged higher, catalyzing the next bull run that brought it to new heights.
Title Image Courtesy of Marco Verch Via Flickr