By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
The ETH sales failed to limit themselves by just one day: the crypocurrency remains weak, dominated by the bears. On Tuesday, March 17th, it is generally trading at 117.55 USD.
On H4, the ETH is having a little rest from the bearish phase. The last impulse of decline confidently overcame the support line of the descending channel, indicating the stability of the sellers’ mood. The quotations neared the key low of 80.86 USD but may only reach it after a pullback and a breakout of the local low of 89.80 USD. After the breakout of 80.86 USD, the quotations will head for the post-correctional extension range of 138.2-161.8% Fibo (50.30-9.30 USD). The descending of the MACD lines confirms further decline.
On H1, there is a pullback preceded by a convergence on the Stochastic, which made the correction predictable. The first wave of growth reached 23.6% Fibo, and the second one, after a Gold Cross on the Stochastic, may reach 38.2% (152.25 USD) and 50.0% (171.37 USD).
Last week, the Ethereum experienced the deepest slump in its history. At night on March 13th, its rate fell by 55%, from 196 USD to 86 USD. No doubt this was a tremendous stress for the company and the cryptocurrency. In the history of the ETH, there already happened a large-scale decline in January 2018, when its price fell by 48% in 24 hours. However, two year ago the ETH cost 780 USD after the decline.
According to an economist Nouriel Roubini, the ETH must be falling to zero. It has been a long story of Roubini’s skepticism towards Buterin’s cryptocurrency: he has long been saying that the real cost of the ETH is zero. He openly calls its developers frauds and accuses them of manipulating the rate not to let it decline to zero.
Again, there is nothing new to it: Roubini thinks that there is noting vital behind the Ethereum ideas.
However, there is another point of view. For example, a MakerDao programmer Amy Jung sees a potential in buying the Ethereum on the current declining wave to receive the validator status later, after the launch of the ETH 2.0. The condition is to buy 32 coins.
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.