We can all agree that Ethereum has been in a pretty damn big bear market. I mean, it HAS done pretty well in 2019 but it has lost a total of 62% since the high of $510 placed just in July 2018. Whilst some may look at this and think this is a dire pretty situation, others have put forward the argument that this potentially might be the best time to buy.
Twitter user Chris Burniskie had recently Tweeted that ETH is enduring the first-ever mainstream bear market - something similar to what Bitcoin experienced during 2014/15. During that time, many people were turned off about Bitcoin and ended up missing the bus when Bitcoin started to move - due to their bias. In hindsight, this was probably the best time to buy with the best risk/reward ratios.
Burniske believes that what happened with Bitcoin then is happening with Ethereum right now.
ETH/USD - MEDIUM TERM - DAILY CHART
What Has Been Going On?
Taking a look at the daily chart above, we can clearly see how badly Ethereum has been suffering when we zoom out. However, during 2019, Etheruem has been climbing which is a good sign that the downtrend might actually be over.
The market has recently been facing downward pressure from Bitcoin falling but has managed to remain supported by a long term rising support trend line that has been in action since the start of the year. If Etehreum can remain above this trend line, there may be a strong potential for the cryptocurrency to rise toward $350 over the next few months.
Where Can We Go Next?
If the bulls can rebound from the rising support trend line we can expect the first level of resistance to be located at $200. Above this, resistance then lies at $233, $260 and $298 (provided by a long term bearish .5 Fibonacci Retracement). If the buyers continue above $300, further higher resistance then lies at $321, $340 and $348 (provided by bearish .618 Fibonacci Retracement).
Alternatively, if the sellers push the market beneath the rising support line we can expect immediate support to be located at the .886 Fibonacci Retracement level (drawn in green) priced at $178. Beneath this, further support is expected at $168, $160 and $151.