At the time of writing, Ethereum (ETH) is trading at around $187 following a 4% 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 in a clear consolidation downtrend towards the end of October after making a number of lower highs since mid-July when the coin suffered a massive drop.
However, the altcoin downtrend seems to have reversed since the pump two weeks ago that caused Bitcoin’s price to rise 40%.
Will ETH continue to recover to above $200? Or will it plunge back towards $160 and below?
Let’s take a look at the chart for Ethereum.
Over the course of September, Ethereum was seemingly well on the road to recovery following a tough summer, with price finally rising above all three of its EMAs for a brief moment in the middle of the month.
However, accompanying the wider market downturn towards the end of the month, ETH came crashing back down. It has since been attempting to consolidate and recover, but 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 big volume resistance wall near $170 – which I have been mentioning since late September.
Price went from $160 to $190 in just a couple of days, representing an increase of over 18%. Since then, ETH has been consolidating above its 20-day EMA and 50-day EMA.
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.
For now, investors have been storing their remaining value in BTC, as Bitcoin is still close to 90% domination according to some sources.
My analysis is that BTC is still in a bull market, and soon enough, the top altcoins will be as well.
For now, I would aim at making minor entries while the price is still below the 200-day EMA. Volume seems to have consolidated since last week and is now close to $7.6 billion – a sign of recovery.