This harrowing price trend has been attributed to a confluence of factors, one such being that the PlusToken Wallet scam that brutalized many in the industry has a large portion of ETH that is being or will be liquidated, making investors price that potential sell-off in.
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Whatever the case, a prominent cryptocurrency analyst that has a solid track record has said that the technicals suggest Ethereum has found a bottom, potentially setting the stage for a return to a bull trend.
Ethereum Has Bottomed? Really?
According to a recent tweet from technical analyst Dave the Wave, Ethereum may have just put in a bottom in terms of its price against the U.S. dollar, looking to the chart below to prove his point.
In the chart, the popular Twitter analyst noted that ETH recently bounced off the 0.786 Fibonacci Retracement level of the price action from the 2018 bottom to the 2019 bottom, while the Moving Average Convergence Divergence (MACD) has shown signs of a reversal on a medium-term basis, boding well for bulls.
Freebie from my alts page.
And that ladies and gentlemen may have been the bottom in ETH. May it be a happy and prosperous new year.
pic.twitter.com/TJZW4SNbLe
— dave the wave (@davthewave) December 30, 2019
So what are Dave’s credentials? Why should we listen to a Twitter analyst whose avatar is the famous Japanese painting of a tsunami?
Well, this trader is the one that called for rationality to return to the crypto markets when BTC was trading above $10,000, claiming the move was a clear overextension of BTC’s long-term growth curve and standards. He went as far as to say that Bitcoin was poised to return to $6,700 — this was months ago.
Related Reading: Math Shows That 2020 Could Be a Great Year for Ethereum Bulls; Here’s Why
Not All Is Fine and Dandy
Not all is well and good for Ethereum though.
Google recently removed the Ethereum interface application MetaMask’s application from the Google Play Store, citing concerns about violations of the company’s financial services policies, meaning that access to the blockchain may be restricted. Coinbase may follow suit with its own decentralized application interface.
Along with bearish fundamental developments, there are also some harrowing analyses in terms of the ETH charts.
Per previous reports from NewsBTC, a trader going by Mac wrote that he expects both altcoins as a class and Ethereum to fall by 20% against Bitcoin, noting that the ETH/BTC pair is currently far above any semblance of support.
This came shortly after another analyst, Velvet, said that Bitcoin’s dominance metric is likely to hit 78% — some 10% higher than current levels — by March, just four-odd months away. He attributed this expectation to the fact that BTC is showing signs it is about to begin its next leg higher — one that will bring it to BTC — meaning that capital flows towards altcoins is likely going to slow at a dramatic pace.
Yes, ETH/BTC could fall buy ETH/USD could rise in dissonance. The point is that not analysts are decisively bullish on the second-largest cryptocurrency.
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