For the best part of the last month Bitcoin has been relentlessly chomping into the altcoin markets as its dominance surged to a seventeen month high of 60 percent. An inevitable cooling off and pull back for Bitcoin is expected, but will traders be putting their profits back into fiat or choosing low priced alternatives such as Ethereum?
Ethereum Prices Sill On The Floor
Ethereum is rallying at the moment but the long term picture still shows ETH depressed at mid-2017 prices, down 84 percent from its all-time high of $1,400. Comparatively, Bitcoin has almost doubled in six weeks and is only 60 percent off its peak price.
Ethereum shot to $400 in June 2017 and then again in early September but spent a lot of time hovering around the $200 to $300 level. It only really took off in December of that year in a short lived rally that was on the way down again by mid-January.
Since then Ethereum nosedived almost 94 percent to a low of $85 in mid-December 2018. It has shown limited signs of recovery but has been blitzed by the performance of others such as Litecoin and Binance Coin. That could all change when Bitcoin corrects and traders seek cheaper alternatives. Crypto trader going by the moniker ‘CryptoFibonacci’ wrote;
“It makes sense, with the money some people have made on BTC, they will naturally rotate back to some beaten up Alts they like. The key here is to see what reacts well and what does not. A lot of these Alts will not be around in a year, so be careful IMO.”
It makes sense, with the money some people have made on BTC, they will naturally rotate back to some beaten up Alts they like. The key here is to see what reacts well and what does not. A lot of these Alts will not be around in a year, so be careful IMO.#BTC
— CryptoFibonacci May 15, 2019
Ethereum would be a good choice since it still has huge potential and massive upgrades slated for later this year. Add to that its low price and we could see a move up to $300 pretty quickly. Other traders such as ‘The Crypto Dog’ wrote “I am currently long $ETH/$USD. #Ethereum currently at resistance, if it can break this range high I think we see $240 very soon. Next target after that: $300.”
Ethereum is currently at resistance just above $200 but could well go further if it can be broken due to a short term outflow from Bitcoin. ‘Crypto Fib’ added;
“Getting close to major resistance. But it is also forming an ascending triangle. Expecting a retrace here soon but then to break out higher after.”
$ETH Daily Chart.
Getting close to major resistance. But it also forming an ascending triangle. Expecting a retrace here soon but then to break out higher after.
— CryptoFibonacci May 15, 2019
At the time of writing Ethereum was having one of its best days of 2019 with a surge of 10 percent from just above $200 to $220 according to Coinmarketcap.com. Daily volume is at a solid $13 billion and ETH market cap has reached $23 billion, its highest for seven months. Ethereum is slowly pulling itself off the floor but there is a long way to go yet for the world’s second largest crypto asset.
Go to Source
Author: Martin Young