Ethereum (ETH) may be ready for a new rally, though establishing a bottom may only be known in hindsight. ETH prices against BTC pairing look worrying as the asset continues to break to new range lows.
ETH Starts Showing Upside Potential
ETH has recovered slightly from the downward selling pressure over in the past three months, but it is still early to call the bottom. Right now, the asset is fluctuating in a range and looks likely to break lower unless new volume arrives.
Somehow the ETH bottom attempts are getting weaker, not stronger.
There is a chance this is the bottom but I think it's pretty minuscule.
Reclaim the "not bad" trading range and I'll change my tune.Hard to ignore that this isn't a bullish chart, not yet anyway. pic.twitter.com/L14Xf7AexR
— DonAlt (@CryptoDonAlt) January 30, 2020
At this point, analysts view charts as rather uncertain, and not entirely promising of a bullish move. Ethereum has remained mostly depressed and is overdue for a move against Bitcoin (BTC).
ETH traded at $176.50, though selling has depressed the price and the $200 range has been abandoned for good. But now, trading volumes remain relatively high at $10 billion in 24 hours, sparking hopes of more active trading.
More than $1 billion flows into ETH markets from Tether (USDT), and above $770 million from the BTC markets. But this heightened activity is yet to push the price upward, as ETH is going through another transition period with doubts regarding the effect of proof-of-stake and ETH 2.0.
For now, the Ethereum market price looks confusing, with the potential to find a new direction. But with BTC rallying, altcoins are still hesitant for bigger gains.
#ETH decision time in a couple hours – we will see. pic.twitter.com/adaL9qw7xt
— David (@channelmann) January 29, 2020
The ETH futures market is slimmer, and trades may push the price more than expected. Still, analysts believe Ethereum is capable of regaining $200, with a big upside potential.
#ETH (First Coin)
We can see a fake breakdown of the $159 support, the spike reached $154 point. Now the price is taking hold above the level, so we can consider this breakdown as a scam wick. Potential of going higher is great. Targets are on the chart. pic.twitter.com/Mc3piAyNE0
— Crypto Trader (@CryptoT70653485) January 24, 2020
Staking, DeFi, May Define Ethereum Price
The Ethereum network hashrate is also recovered and relatively flat at nearly 300,000 GH/s. Miners still widely support the network, despite the aim to switch to staking. Right now, ETH is still seeking a use case, and staking is not yet central to the network.
Ethereum is also being locked in DeFi schemes and lending. However, the demand for ETH is not as high in comparison to the ICO gold rush in 2017 and 2018. Vitalik Buterin, co-founder of Ethereum, has also spoken against the practice of ETH-based lending.
I just call them CDPs and the activity leverage trading.
And I have been opposing the use of the word "lending" for quite a while
https://t.co/EZmwLaouZ9
— vitalik.eth (@VitalikButerin) January 30, 2020
Additionally, the Ethereum ecosystem will have to absorb the dissolution of the Digix DAO, one of the earlier decentralized organizations. Digix will redistribute the ETH invested, which may put pressure on the markets. Digix was notorious for having more than 20,000 ETH stolen by a hacker, then returned about a year later.
What do you think about the potential of ETH to rally? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter @CryptoDonAlt @VitalikButerin @CryptoT70653485