Ethereum (ETH) has been the face of negative news and criticism over the past few weeks as investors have lost their mind over the weakness in price that we all witnessed recently. As the second largest coin in terms of market cap, when Ethereum (ETH) moves, the whole altcoin market moves with it. Investors holding on to their Bitcoin (BTC) since $20,000 think it’s pretty bad but ask an Ethereum (ETH) Investor that bought at $1,500 per coin how bad it can really get! The price broke market structure recently and immediately headed down to the bottom of the trend line. RSI for the above ETH/USD weekly chart shows that nothing out of the ordinary has happened so far and that the price is still very likely to begin a new trend at this point.
Ethereum (ETH) like the rest of cryptocurrencies will begin a new trend in the near future but that is not all investors are interest in right now. After a massive correction, most cryptocurrencies are currently available at dirt cheap prices. This has made it a challenge for investors to decide why they should invest in Ethereum (ETH) again and not other promising altcoins, especially when the prospects for Ethereum (ETH) do not look as bright as before. There have been coins like Ethereum Classic (ETC) and Stellar (XLM) that have actually gained attention of the crypto community during the correction. However, old giants like Ethereum (ETH) and Ripple (XRP) have seen a decline in their popularity as investors now have the opportunity to invest in other promising investments with better prospects than before at pre rally prices.
From a technical analysis standpoint, Ethereum (ETH) still has a lot of room for growth. It would not be surprising at all if the price reaches five figures by the end of 2019. The chart above for ETH/USD shows that Ethereum (ETH) has just touched the bottom of its ascending channel. Furthermore, RSI for ETH/USD has been trading in a large falling wedge extending all the way to 2017. The RSI is expected to break that falling wedge before the beginning of October. Similarly, the wave trend for ETH/USD shows that the price is just preparing for a trend change and could most probably begin a new trend before the beginning of October. These are all very favorable developments that could definitely see Ethereum (ETH) surpassing its previous all time high to settle around $3,000 or higher by end of the year.
Ethereum (ETH) might still look a safe investment as far cryptocurrency investments are concerned. However, it may not be as lucrative as before. The monthly chart above for ETH/USD shows that the price of Ethereum (ETH) has not been the only variable in decline. RSI for the above chart shows that it has been trading in a falling wedge since the beginning of the correction and is now expected to break out. This is a bullish development in itself but there is one other important factor on the above chart that many analysts and investors are not paying attention to. The accumulation/distribution profile for the above chart of ETH/USD clearly shows the declining interest in Ethereum (ETH) accumulation. Very few cryptocurrencies with solid fundamentals have exhibited this kind of behavior. It is a strong sign of weakness and loss of interest in the asset. The trend shows that the accumulation interest in Ethereum (ETH) is expected to keep on declining till it hits rock bottom most likely next year.