Today’s news of a false breakout in Ethereum (ETH) shows that the value of the coin is back below USD 2500 for the time being.
However, ETH is not really down overall, at least not in the long term.
You just have to scroll back to a year ago when Ethereum was trading around $ 300 to see the leading cryptocurrency known for its ability to enable smart contracts rose to around 800% of its annual price, which pretty is good news for everyone who invested more than a few months ago.
NewsBTC’s Aayush Jindal talks about the near term future of ETH as a Fibonacci retracement and talks about a downward break for the cryptocurrency.
“If Ethereum does not break the resistance levels of USD 2,550 and USD 2,600, it could go further down,” writes Jindal. “Initial support on the downside is near the $ 2,510 level.
The first big support is near the $ 2,500 mark and the 100 hour SMA. A downside break below the 100-hour SMA could push the ether price towards the USD 2,450 support zone. Further losses could pave the way for a decline towards the $ 2,400 mark in the near future. “
Others have rosier long-term prognoses for the future of ETH.
“Validators, not miners, will be the future of Ethereum,” writes an unnamed analyst at The Stuff of Success. “It will be deflationary and more accessible than ever. Ethereum’s future could still be explosive. The world’s leading blockchain for smart contracts, DeFi, NFTs and more has grown to take on even greater challenges. “
Then there is what happened today: Will ETH and other crypto-coins benefit from a possible announcement of tapering? If Jerome Powell and his crew suggest that it is time to lift some of the economic safeguards the Fed has had for years, stocks could be devastating. Be careful around 2:00 p.m. EST.