This time last week, it was all about doom and gloom for Ethereum after a high-volume candlestick drove prices below $200 for the first time this year. Needless to say, ETH prices have since recovered. Though we need to see movements above $300, it’s safe to say that aggressive traders can ramp on longs on every dip in lower time frame with the only deterrence being Sep 5 bear candlestick. This bar continues to overshadow and would likely damp buyers’ efforts in days to come.
Latest Ethereum News
Trading at around $205, ETH is a valuable and a sought-after digital asset. Unlike traditional assets, ETH exists in the inter-web and hot wallets are therefore honey pots for hackers. According to Sagasec, a Cyber security firm that was contracted by MyEtherWallet to oversee the security of the Ether storage platform, the wallets is definitely in the hackers’ cross hairs. Their statistics indicates that they wade off as much as 40 attacks per week according to reports.
Attack vectors vary from fake MyEtherWallet websites to dubious social media advertisements or re-direction from emails targeting gullible ETH coin owners. Regardless, Sagasec has been largely successful. So far, there haven’t been any cases of account holders complaining of lost funds through malicious hacks. This pales in comparison with those of exchanges. Crypto exchanges have so far managed to print more than $550 million in losses.
While MEW is doing a wonderful job, the value of ETH—different from price is a subject of contention. It appears as if Jeremy Rubin did trigger an important topic in the blockchain realm. With his economic abstraction argument and projection that ETH might spiral down to zero, argument is now moving to the reservation demand of ETH. In economics, the reservation demand is how long the owner of currency is willing to hold before exchanging it for goods or service. Economists argue that the recent sell off is sparked mainly by ICO fund managers liquidating their DA fueling the selling frenzy. This means at the moment the reservation demand of ETH is low as ICO project managers aren’t willing to risk stalling their project as ETH prices tank.
Ethereum Price Predictions
Weekly Ethereum Price Charts
On a weekly basis, ETH is on a recovery path. From the level of market participation in the last week, chances are we might see confirmations. Cementing this assertion is the marked increase in trade volumes. That’s besides the long lower wick of last week signaling entry of buyers.
Though sellers have an upper hand and trading within that break out pattern of week ending Aug 12, our Ethereum price prediction depends on the speed at which ETH bulls would drive prices towards $300—our immediate highs in days to come.
After all, prices are trading within that high-volume bear candlestick and technically that means sellers are in charge.
Daily Ethereum Price Charts
Following the confirmation of that morning star pattern mid last week, ETH bulls aren’t slowing down.
So far prices are up seven percent on a weekly basis but discouragingly down six percent in the last day. All in all, our previous Ethereum price analysis holds true.
While risk off traders can begin loading longs at current prices with targets at $250, conservative or risk on Ethereum bulls should wait for conclusive breaks and close above $300 before buying on dips.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.