This extended bear market that crypto is currently caught in seems to be never-ending. Since December for 2017, the market as a whole has lost more than half of its total value. Is this simply the large correction most traders should expect after a meteoric rise like we saw the end of last year? Is this the more realistic level of the market when you take into account current adoption into mainstream markets? Was the bottom finally found this past week when we saw Ethereum drop down to around $500/each?
Looking at the past few sessions, they were mostly positive above the new $590 support line against the US dollar. As of writing this, the price is comfortably placed above the $610 level and the 100 hourly simple moving average. It also settled above the 50% Fib retracement level of the last drop from the $636 swing high to $573 low. On the upside, a move upward and a close above $614-615 area is needed for further gains. A successful break above this will most likely open the doors for a ride towards $635. On the flip side, if the price moves down, there is a decent support around the $600 level. There is also a strong bullish trend line in place with support at $602 on the hourly chart of ETH/USD.
Hopefully, we are seeing a new bullish trend emerge from the market that has been battered and beaten for coming on 6 months. When speaking with cryptocurrency forecasters and traders most say they are still very bullish. With the general consensus being that within a calendar year of today, Ethereum should be closing in on the $2100 mark, and $6700 within 5 calendar years from today.
When asked why most of them feel that Ethereum is due for such a large jump, many cite the technology behind it. The capability of Ethereum smart contracts is second to none. It has already seen a great deal of interest and in some cases adoption by many large corporations. As this adoption continues its popularity will continue to increase, causing its value to increase as well. More so, there are quite a few companies which are working solely on the Ethereum blockchain rather than the Bitcoin-based blockchain. Thus, the prominence which it will be able to achieve will be much higher as compared to the Bitcoin-based blockchain. The underlying technology seems to be pretty strong as well. This is the reason why the predictions in the year 2018 as well as thereafter are looking very positive.
When looking at the market as a whole we still believe Ethereum is one of the safer places to hold value while we continue to ride out this down market. Its adoption and popularity seem to only be rising, and with it will come high prices. With a CEO like Vitalik Buterin, who seems to have his teams working night and day, and promises of 1 million transactions per second through the use of sharding and layer-2 applications. We believe Ethereum is the front-runner when talking about the future of cryptocurrency and smart contracts.