Ethereum (ETH) drops to the 5 Week EMA against Bitcoin (BTC) but it could fall further to test the 21 Week EMA. That level is not likely to be breached and the price is expected to begin a recovery from there. The support we currently see for ETH/BTC on the weekly chart goes way back before 2017 when it was once a resistance. The price successfully pierced through this level in March, 2017 and this resistance turned into a long term support that the price successful tested once in December, 2017 and then again in December, 2018. Both of these times, this level held strongly and the price bounced off strongly after testing this level.
The weekly chart for ETH/BTC shows that Ethereum (ETH) has been trading in a descending triangle against Bitcoin (BTC) for almost two years now. This means that Ethereum (ETH) is now expected to break its downtrend and begin its climb against Bitcoin (BTC) in the months ahead. The circumstances for this rally against Bitcoin (BTC) couldn’t have been better. Ethereum (ETH) is about to go forward with its Constantinople upgrade which will prepare it for a smooth transition to Proof of Stake (PoS) from Proof of Work (PoW). This transition to Proof of Stake (PoS) is expected to make the Ethereum (ETH) blockchain more appealing to developers as well as investors. Dapp development activity on Ethereum (ETH) is also expected to rise after this transition.
Blockchain technology in general and Ethereum (ETH) in particular have been around for a long time now. Ethereum (ETH) has been through phases of ideation, testing and development but now it is time for adoption and real use cases. In the beginning, investors and developers both were interested in blockchain as a technology and they wanted to see what kind of blockchains there were, what features they had, what challenges they faced and all that. However, today investors as well as developers in this space are more focused on what they can use the blockchain for. Smart contracts can be used for payment, legal correspondence, supply chain management etc to revolutionize a large number of industries.
The daily chart for ETH/USD shows that Ethereum (ETH) has already bottomed and is now close to beginning a new cycle in the weeks and months ahead. How and when it appreciates in price is not clear yet but it is clear that Ethereum (ETH) is moving towards mainstream adoption. Crypto enthusiasts are no longer interested in Ethereum (ETH) being used by Microsoft, Amazon or any other tech giant because it is well past that stage. It does not need recognition of any of these large corporations to thrive. In fact, Ethereum (ETH) investors are more interested in seeing a large number of new Dapps built on the Ethereum (ETH) blockchain that disrupt the modus operandi of big tech and finance giants. This will not only help eliminate a trust based economy where everything from the US Dollar to the stock you hold only has value if a higher authority says so, but It will also lead to more innovation, transparency and ownership.