August 21, 2020
From Monday to Wednesday, Ethereum suffered the first strong correction seen in a few weeks. The asset slipped from the highs of $440, set the week before, to approximately $395, a drop of around 10%.
Recently, Ethereum suffered the first strong improvement seen in a few weeks. From the week before, the asset slipped from the highs of $440 to approximately $395, a drop of around 10%.
This drop was worse than Bitcoin’s. The top cryptocurrency only lost 8% from its local highs, with bears prohibiting BTC from holding above the pivotal $12,000 price level.
As many analysts were surprised by this drop. One noted that there’s a possibility Ethereum unwinds to $300, mentioning a potential “head and shoulders” formation performing on this chart.
Though, it’s important to note that ETH held a pivotal technical level during this correction. ETH’s ability to maintain that level should lead to more upside, as it suggests the uptrend formed many days ago remains intact.
However, it’s significant to note that ETH held a pivotal technical level during this improvement. ETH’s ability to uphold that level should lead to more benefit, as it suggests the uptrend shaped many days ago remains intact.
Win for Bulls; Ethereum Holds a Pivotal Technical Level
Ethereum has held above an important technical level throughout the recent retracement in a decisive win for bulls.
A cryptocurrency trader recently shared the chart seen below. It shows that regardless of the 10% improvement ETH faces, the asset held the crucial 20-day simple moving average. The 20-day moving average is understood by many traders as a level for assets to keep during an uptrend.
This is shown by Ethereum’s price action in the chart further down. As can be seen, there was an instance last week where Ethereum cleanly ricocheted off the moving average. The table also specifies that as soon as ETH broke beyond the moving average by the end of June, it began the disgusting rally that took it from $240 to $440 in a matter of weeks.
Going ahead, ETH should sustain this crucial support level if it is to maintain its bullish uptrend. If the asset falls beneath this level, analysts may begin to query the legitimacy of the sentiment that Ethereum will set new highs.
ETH Fundamentals; Stronger than Ever
Underlining Ethereum’s strong technical uptrend are essentials.
Notwithstanding a bug, the first phase of ETH2 is expected to unveil in 2020. ETH2 is the term labeling an all-encompassing upgrade to the Ethereum procedure that will histrionically overhaul how dealings are administered and how nodes reach consensus.
Analysts assume the launch of ETH2 to catalyze development in the Ethereum market due to the introduction of gambling and a faster blockchain.