As a followup to our Bitcoin’s price action and prediction post, we decided to have a look at the other heavily traded cryptocurrency, Ethereum. Just like the rest of the crypto-atmosphere, Ethereum (ETH) has also taken a significant hit during this past few months. In fact, from what you can see in Figure 1 below, since May 5th, 2018 – just 54 days – ETH has lost about 50% of its value. There are various reasons as though why there has been such a significant decline in value, some may attribute this to the price of Bitcoin. It could also be due to the questions surrounding whether it is a security or not. A question that was recently answered by the SEC – which came to the conclusion that ETH is indeed NOT a security.

Figure 1 – ETH has lost more than 50% of its value in the last 54 days.

ETH seem to have found some momentum at towards the end of May as it bounced off of the $520 – $540 range. However, it quickly lost steam, and has been once again on a downward spiral.

The good news is that we believe that ETH is reaching a buy zone, which it could reach within the next few days. Let us look back to end of March / beginning of April, when we found ETH in the same territory (Figure 2). ETH found support in the $375 – $400 range, buyers came in, and in matter of 30 days, we saw the price of ETH rise about 120%.

Figure 2 – The last time ETH reached these levels, it bounced 120% in matter of 30 days

 

As you can see in Figure 3, We believe that ETH may be reaching that essential buy zone again. This is the range that we will begin to look to accumulate ETH awaiting another potential run in the future. The first support line is the $375 – $400 range, with the second being the $280 – $300 range. Anything below that could spell disastrous for ETH.

Figure 3 – ETH could be reaching a buy zone

We will continue to watch ETH in the next days to see how ETH behaves once it reaches this critical zone. If ETH begins to show strength and looks to break out of this downtrend, it could spell and end for this downward spiral. If there is a bounce and a breakout occurs, we encourage our readers to be weary of the $525 – $550 resistance zone. If ETH is to break that resistance zone, it could potentially run to $650 – $680 and then $750 – $800.

 

 

Get posts delivered to your mailbox!

Due to increased demand and support from our readers and our growing community, the daily Stocks on the Radar will remain FREE to our readers until END OF JULY, 2018SUBSCRIBE NOW and use the COUPON: MORNINGCOFFEE to get 25% off our current rate of the Bronze Plan. Starting August 1st, 2018, we will be charging $25/month for our subscription package.

subscribe to our research

Subscribe to our research to gain access to our outstanding research articles covering both stocks and securities and blockchain and cryptocurrency. We do not publish frequent reports, however, the quality of our research is outstanding. Our readers can expect one to four research quality articles per month. Upon subscribing, members gain access to our extensive research on securities, blockchain projects and crypto assets. Our reports include details regarding, the demand and the market, roadmaps, strengths and weaknesses of the team and advisory board, key partnerships and associations, competitions and key concerns, tokens and supply – for blockchain projects.

[supsystic-price-table id=8]

 

Disclaimer: The above references an opinion and is for information purposes only.  It is not intended to be investment advice.  Seek a duly licensed professional for investment advice. The Author does not hold any of the securities discussed above.
Legal: The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Point Pleasant Park Capital (“The Company”) does not engage in rendering any legal or professional services by placing these general informational materials on this website. The Company specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if I have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses. The Company makes no warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that The Company endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated.