During the 2017 crypto bull run, Bitcoin skyrocketed to an all-time high of $20,000. Meanwhile, fever surrounding the ICO explosion also helped Ethereum reach its highest price ever at $1,400. In 2018, Bitcoin and Ethereum set lows of $3,150 and $80 respectively.
Since the lows were set, Bitcoin and other “large cap” or “major” altcoins such as Litecoin, Binance Coin, and more have recaptured much of that lost value. But for one reason or another, Etheruem has lagged behind compared to the rest of the crypto market. However, the 200EMA acting as resistance could be what’s causing the smart contract-focused cryptocurrency to underperform, and once that resistance is broken, Ethereum is expected to outperform Bitcoin twofold over the next 24 months with a face-melting, parabolic rally.
Fireworks If Ethereum Can Break EMA200 Resistance, Is June 26 Significant?
When it comes to the catastrophic collapse of the crypto bubble, few digital assets fell as hard as Ethereum. Not only was it impacted by the bear market itself, which dragged the price of most cryptocurrencies down over 90% or more, it was further encumbered by the vast amount of ICO treasuries selling off the ETH they raised during the ICO boom.
The extended sell pressure took the total drawdown in Etheruem to as much as 94% of the asset’s value.
In recent weeks, as the market has picked up again – with Bitcoin more than doubling in value and other major market cap altcoins like Litecoin bringing investors nearly 600% in gains –Ethereum’s bullish performance has trailed behind the rest of the market.
According to crypto and forex analyst Jacob Canfield, Ethereum has been stuck below the 200EMA since June 26, 2018 – something that could help explain the lack of interest from buyers. Traders and analysts look to longer-term moving averages such as the 200EMA to help them determine if an asset is a buy. Below the 200EMA – it’s not. Above it – it’s a buy.
Significant dates, such as the one-year market on a chart can often lead to “fireworks” and the same could happen with Ethereum should the crypto asset break above the 200EMA on or before June 26, 2019 – the one year mark since Ethereum fell under the indicator line.
– $BTCUSD 14/15 consolidation 288 days to breakout
– $ETHBTC consolidation 278 days and counting, one of the largest consolidations in crypto
– The only large scale secure decentralised SC network ? pic.twitter.com/xcvOLJQLAv
— //Ethereum ?ack ? (@BTC_JackSparrow) June 12, 2019
If Ethereum does break above it, it could potentially “outperform BTC over the next 24 months.” The “unpopular opinion” by crypto analyst Bitcoin Jack is further backed up by other traders across the market, who say there isn’t a more “bullish chart.”
— Galaxy (@galaxyBTC) June 12, 2019
With a chart so bullish, it could lead to a “face-melting” rally, matching what has been seen in Bitcoin, Litecoin, and few other cryptocurrencies that have seen the first glimmer of a bull market.
With Bitcoin having gone parabolic in recent weeks, as well as Litecoin, Ethereum is one of the few assets in the space that has yet to do so.
There are interesting days ahead for Ethereum investors, and those considering taking a position in the asset – with June 26, 2019 being a specific date to watch.