Ethereum, the second-largest cryptocurrency in the world after Bitcoin, has seen the price declined 50% from the highest recorded this year.
Ethereum may still fall further
Ethereum has closely monitored Bitcoin’s price action recently and it seems that the future of Ethereum currently depends on Bitcoin, as the leading cryptocurrency decides the direction of the rest of the market. And unfortunately, it seems that bears are taking control, which means that both Bitcoin and Ethereum are likely to drop.
During the recent chaos, ETH has not gained any increased trading volume, which may provide some insight into the current trend.
It is important to note that the volume of Ethereum has increased significantly compared to the beginning of this year, but the absence of any momentum could signal that a major movement is imminent.
In a short time frame, ETH has been trading in a relatively wide range from $ 120 to $ 200 and this range has been tightening over the past few weeks.
While looking at Ethereum’s one-year price action, it can be seen that the price has been extremely volatile in 2019. ETH started this year at $ 90 and then caught up with the wave of Bitcoin’s reversal that pushed the price soaring to $ 350 at the end of June.
Shortly after setting this high, ETH began a month-long downtrend that caused it to erase almost all gains incurred throughout the year.
Analysts still believe that the cryptocurrency will probably suffer further losses in the last few weeks of 2019. Popular analyst Galaxy claims that a break below $ 140 could send ETH to as low as $ 110.
$140 must hold or it’s heading to $110.$ETH pic.twitter.com/6KQO2sMV4C
— Galaxy (@galaxyBTC) December 14, 2019
Uncertain increase sign
Although the strong downtrend of ETH has formed, a well-known trader thinks that Ethereum may end this year with a high signal, citing technical trends imply a Santa Claus rally is perfectly plausible.
According to trader Crypto Michaël, Ethereum may be preparing to run to $ 175 on very basic technical analysis, equivalent to a 16% increase from the current price. He proposes a forming double bottom structure, which can be attested to by a breakout of a falling wedge and in fact, important support formed.
Very basic TA as I’m studying, but I won’t be surprised to see a move back up to $175 on $ETH, if support holds here.
As then, we’re making a double bottom structure and in general have bottom signals.
(also jumping back in the range above $160).
But fragile. pic.twitter.com/fcQ3fjQ3Th
— Crypto Michaël (@CryptoMichNL) December 14, 2019
This bullish technical outlook is heating up after a series of positive events for the entire Ethereum ecosystem.
RealT, a US-based global real estate platform that works with Ethereum and blockchains, has just sold the first-ever tokenized asset on Ethereum. This is the first real estate asset to be encrypted, the first security token to be integrated into Decentralized Finance (DeFi).
Meanwhile, DeFi has completely exploded, users have been drawn to derivative tools and the opportunity to access financial services in a decentralized way. Since December 2017, the number of Ethereum locked in DeFi has increased by 22,400%, reaching a new all-time high, as AZCoin News reported.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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