Price predictions using technical analysis can produce a wide range of results for a crypto asset. One analyst has predicted an Ethereum capitulation into double digits if the current trend continues.
ETH Death Imminent?
Ethereum and its crypto brethren have bounced back today but the overall trend is still heavily bearish. From an intraday low below $120 ETH has gained 5% on the day to return above $130 according to Tradingview.com.
The world’s second largest crypto asset topped out at $134 but had already begun to resume its downward slide again at the time of writing as it fell to $128.
Ethereum is back in crypto winter levels and in danger of ending the year lower than it started it. Looking at today’s prices ETH is back at the same price it was on January 1st.
During last year’s rout ETH was crushed below $85 and one analyst thinks it can drop even lower.
don't @ me pic.twitter.com/1RcYC4AXU5
— Josh Olszewicz (@CarpeNoctom) December 17, 2019
Of course, drawing a line from top to bottom could apply to all cryptocurrencies providing there is no recovery. If Ethereum dumps that low the same scenario would have Bitcoin could revisiting $1,000 but this highly unlikely.
The same analyst has added that ETH daily RSI is currently at 21.
“[Ethereum ]has only ever been this low five other times, two of which were local bottoms, the others leading to a bullish divergence,”
From its 2019 peak Ethereum has corrected 64%, Bitcoin in comparison has only pulled back 48% over the past six months.
— il Capo Of Crypto (@CryptoCapo_) December 16, 2019
— HUGOFREIRE.ETH (@hugofirefreire) November 24, 2019
When ETH 2.0?
Fundamentally, concerns are growing about the future of ETH 2.0 and how long it is actually going to take to materialize.
Messari research recently published a paper suggesting that only Phase 0 will appear in 2020 and the rest is unlikely to get rolled out for another year or two.
At the moment this is purely conjecture but there are likely to be delays since launching a completely new blockchain and migrating current users over to it is not going to happen overnight.
There are also concerns about numerous hard forks with the purpose of extending the ‘Ethereum ice age’. CoinMetrics charts show that ETH issuance has now fallen below Bitcoin’s for the fifteenth time in history.
Ethereum is in a bad place at the moment and while further losses may be on the cards, $55 seems unlikely. That scenario would surely be the death of nearly every other altcoin out there since markets still move in tandem.
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