Industry News Ethereum might be preparing a Substantial Jump in Price

Ethereum might be preparing a Substantial Jump in Price

November 5, 2019

Over the previous month, the ethereum blockchain network has not been doing so well. While Bitcoin began a rally in the spring of 2019, ETH managed to pull off only a slight and short-lived bull market. In that sense, it performed in a similar manner as many other alternative cryptocurrencies. All of them continue to fail when compared to the market leader.

Now, it seems that ethereum is showing signs of a more promising future. In recent days, this was further underlined by many analysts who believe that ETH is entering the thick of a clear buy zone. At the same time, many market examinations show that the second-biggest cryptocurrency is all set to break out higher in the upcoming weeks and months. The confluence of these factors presents, according to the bull hopefuls, a very well-defined buying opportunity.

Ethereum Stats

Anyone who has been following the financial markets knows too well that the 200-day moving average is an incredibly important metric. This level according to years of experience from a range of different industries, is an indication of the future tenant of a particular asset. The new analysis shows that it would also be an available tool for determining when is the right time to buy a particular cryptocurrency.

Now, ETH appears to be in a position where the 200-day moving average shows it to be a long term buying opportunity. The network token currently in a price range that is some $30 lower than what its technical indicators should be. In its current state, the price of a token should be around $213 based on technical indicators. However, the actual price is hovering at around $180.

The Buildup of the Upward Momentum

Analysts agreed that the indication of an ethereum buy period is clearly here. However, this does not necessarily mean that the price will follow the same course. After all, all cryptocurrency market is nothing if not super volatile and usually completely unpredictable in anything beyond the short-term price movement. Still, many industry insiders are certain that the upward momentum is here. One of the strongest indicators for this thinking is the fact that the token stabilized at the $180 price range.

This in itself shows a so-called ascending triangle – this is a signal in Trading that usually applies a bullish trend coming to the market. This triangle pattern should provide a rally of around 15% of the current price. If it does occur the price of the token should go to $215 in the coming weeks.

Others are much smaller in their predictions and they see the bull run at least for the initial period Drive the price up to the $260 range. In itself, a scenario like this would drive the price up more than 40% of its current value. Many will likely find this a really unlikely scenario especially if it is not supported by a change in Bitcoin price that puts follow a similar trajectory. Yet in spite of that, the recent movements of the market show that even are a crazy scenario like this is definitely a possibility for the second-largest cryptocurrency in the world.

Network Fundamentals

As it often goes the discussion about the price is completely ignoring the actual underlying technical characteristics of the blockchain network. When it comes to the same fundamental technical side of this cryptocurrency it does have some advantages on its side. The ethereum decentralized finance ecosystem of DeFi is continuing to grow and establish new interest in the cryptocurrency. Right now, a lot of ETH is getting locked up into the DeFi applications.

Besides that, the system is expecting its next big upgrade. Istanbul is going to be a systemwide upgrade that will likely be getting started on December 4th. It too provides a clear insight into the minds of the busy planners of the ethereum network. Naturally, while the greater part of ordinary users is oblivious to these changes, the market does take notice. The same applies to the ever more important institutional investors. If they decide that the time to buy into ETH is right they will most definitely cancel the technical factors that can either support or undermine this decision

Fall from Grace

All of this shows that an interesting time is ahead of the same network. Similar to esports, social media and other cutting edge technological advantages, ETH token is plotting the course into the great unknown. However, there is a strong sense that so much of the enthusiasm and the focus this network attained in 2017 is now irrevocably gone. Bitcoin, in particular, has apparently stolen much of the altcoin thunder.

Ethereum was not outside of this happening and now, it is riding the coattails of its bigger large brother. Even now it all of the technical and technological benefits that it has on its side is stalking is still in the shadow of the number one digital currency. Because of this, many are more than aware of the ceiling that this if the currency can reach in the upcoming 12 or 18 months period. There is little doubt that miracles and complete price anomalies are as possible as ever in the crypto market. Betting a lot of fans on that possibility is something that is not interesting to most if not all investors.

Instead, many will likely buy into ETH if it really does enter a bullish period, but even this will happen as a side effect of the change in the price of the Bitcoin token. In the long run, what is needed for the ethereum network is another ICO-like prolonged boom that will put it against bitcoin in a way where it can win: its superior technical abilities. But, no one can say when will this time come again, or even if it ever will. Until then, shadowing bitcoin will make some investors and traders rich, but it will not change the balance of power in the crypto market in any significant manner.

Source: newsBTC