The price of Ethereum has collapsed in recent weeks. It touched $415 intra-day just 5 weeks ago. Now it is trading around $180, a 55 percent decline. Is this the end of the bull market in Ethereum?
The answer to that question is very simple: Ethereum’s price must hold $180 and, ultimately, $125 in order to continue to be in its long term bull market.
The chart below makes our point. As with any market or stock there are trendlines visible on Ethereum’s price chart.
The higher trendline has $180 as support. Interestingly, between the moment we drew this chart and the moment of writing the price has already fallen below $180. Ethereum is right now trading right above $150. So we consider the first trendline to be broken for now.
That leaves us with the lower trendline with support at $125. It is absolutely critical that Ethereum does not go below $125 in order to remain in its long term bull market.
In March of this year Ethereum’s price rise accelerated. That is the moment we consider as the support trendline as seen on the lower purple line on the chart.
In May we published our 2017 Ethereum price forecast, and said Ethereum would go to $500. It got there almost in June (20 percent below our target).
Although momentum has faded in the crypto market in recent weeks, we believe that sooner or later cryptocurrencies will continue their rise. It could take several months or even a year or two, we do not know the timing. Our long term Ethereum price forecast of $1000 is still accurate according to us because the fundamentals from our forecast are still in place.
No Comments