分析

[Preston coin headlines] What is happening with Ethereum? Market woes continue...


            The total cryptocurrency market cap today is $191 billion with just a little over $500 million more in total trading volume from yesterday at $12.35 billion. After Bitcoin’s market dominance hit 58% yesterday, this number has now retreated to 57%.

            The biggest story has to be Ethereum hitting lows not seen since July of 2017 when it hit $167 yesterday. The recent crash can be attributed to many factors and it is important to know why before participating in this sell-off.


  •      It has been reported that Ethereum and EOS only have about 300 active users amongst 8 decentralized applications.
  •      Vitalik Buterin has said there are still a lot of steps to take to further prevent Ethereum’s downfall.
  •      Ethereum’s price is decoupling from Bitcoin (Ethereum goes down but Bitcoin stays the same or goes up).    
  •      ICO treasuries have just dumped about $30 million in ETH just this past week alone with $600 million more to dump in those accounts.
  •      75% of the decentralized applications on the network are basically CryptoKitties, casino games, and worthless coins, the other 25% are       decentralized exchanges in which no one uses them, according to economist Nouriel Roubini.
  •      Finally, yesterday’s ruling by a New York Federal judge claims that ICOs should be regulated as securities.


All of these elements have contributed to Ethereum’s price crash, and in honorable mention, EOS had a ridiculous amount of Ethereum raised for its ICOs which had contributed to a sell-off of their own. My point is this: There has been a lot of fear in the overall market and now especially with Ethereum. The benefit of being the #2 coin in the world is that you’re right behind the #1 coin in Bitcoin. But at the same time, the drawback of being the #2 coin is that you’re right behind the #1 coin in Bitcoin which means everyone is going to extremely critical of your move. I have been saying that Ethereum’s technology cannot keep up with its trading price and this is exactly what is happening. People are too focused on what Ethereum is trading at and forget that it takes months if not years to develop the solid products. Yes, the price per Ether is extremely low but the real importance is to allow Ethereum to fully develop before casting judgements.

Cryptocurrencies are far from over and that even though this bubble has burst even worse than the dotcom bubble, I don’t think we are finished yet. In fact, we haven’t even begun. The total cryptocurrency market has dropped from $832 billion to $189 billion in the matter of 9 months, so if we were to compare the 2, the dotcom bubble’s recovery took almost a decade but cryptocurrencies have almost finished their cycle. There is still a lot to look forward too. There is too much at stake and too many great minds trying to tackle some of the world’s greatest financial technological problems. Of course, this is going to take longer than what it takes to day trade.

BTC’s daily chart is showing the downward trend may not be over. There is a descending triangle pattern that is strong stemming from all the way in January. A breakout downwards is likely and only twice in the past 9 months did price action actually deviate from this downward trend line. RSI is still below 40 RSI so this is a sign that Bitcoin is still bearish. Currently it’s trading at $6338 but the price looks like it’s going to continue downwards. Short-term resistance is $6419, mid-term resistance is $6607, and long-term resistance is $6910 while looking at the 4 hour charts. Short-term support is $6106, mid-term support is $5780 and long-term support is $5400.

Currently Ethereum is trading at $183.58 but was trading at $174 earlier which was down over 10% from yesterday’s high of $200. The outlook for Ethereum is still bearish after breaking long-term support at $205. Because it broke there, the next level on the Fibonacci extension is $133. RSI on the daily chart is extremely oversold at 19 RSI so a bounce up is imminent but time is unknown. There is still massive divergence downwards between the 8-day EMA and the 20-day EMA so this trend is not expected to change very much in the short-term. Short-term resistance is now $205, mid-term resistance is $250, long-term resistance is $322. Because support has not been truly established yet, short-term support is unclear, mid-term support is $133 and long-term support is $66.







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關於分析師

Preston Hom

交易平台(ICO68.IO)分析師。Newcoins168網站ICO分析師,曾擔任現代美國汽車公司的數據分析師。2013年畢業於加州大學爾灣分校。 在目睹身邊的朋友通過首次代幣發行(ICO)投資的高回報率賺了數百萬美元後,Hom進行了第一次ICO投資 。他通過識別宏觀趨勢,研究和分析,成功將自己的所有投資增值,回報率最高達到4000%左右。他認為,區塊鏈技術與互聯網起源的獨創性相似,在web 3.0創新技術的帶動下,區塊鏈技術將會為世界提供更多成功的機會。

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