By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
By Friday, February 28th, the emotional selling of the ETH has stopped, and the digital currency has got a chance for stabilization. It is generally trading around $227.23.
On H4, the quotations have broken the Triangle downwards by a strong impulse and reached 38.2% Fibo. In the short term, there is a pullback going on. Current situation may be interpreted as an attempt to decide what to do next: decline or grow and renew highs. If the market is going to form another wave of growth, its first aim will be at the high of $288.98. But if the decline continues, its aims will be the levels 50.0% ($202.65) and 61.8% ($182.10). The confident dynamics of the MACD means readiness to continue the downtrend.
On H1, the quotations demonstrate a small pullback after a declining wave. The previous decrease has corrected to 38.2% Fibo. The ascending of the Stochastic dynamics indicates the possibility of further growth to 50.0% ($243 70). In its turn, a breakout of the support level near $208.28 will signal the development of the mid-term downtrend.
The Ethereum founder Vitalik Buterin considers it impossible for the BTC to reach $100,000 – by itself or influenced by the coronavirus hysteria. He states that 95% of global long-term forecasts have no real foundation, hence, they are not to be accounted for.
Buterin calls all attempts of forecasting the behavior of cryptocurrencies due to certain news “rationalized nonsense”.
Naturally, this is just one opinion. Any market is influenced by the flow of news, regardless of its content. However, the extent of the influence may differ – from insignificant to global. In the coronavirus situation, the crypto sector is likely to have experienced a larger part of the emotions. Demand for alternative assets is present but not as active as before.
The key cryptocurrencies may keep growing in price as long as investors need safe instruments for storing their money; however, forecasts are useless here – the BTC and ETH may grow either sharply and confidently or symbolically, as for them nothing in particular changes.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.