On D1, ETH/USD goes on correcting in an uptrend. The quotations keep trading at the lower border of the ascending channel, aiming at 61.8% Fibo. Another signal of the decline is given by the MACD: the histogram is at zero, while the signal lines have formed a Black Cross. Judging by all the factors, we may conclude that the pair will be declining to 61.8% Fibo, and in the case of a bounce, it will head for 265,00 USD. However, we should not exclude the idea that the price will break away 61.8% Fibo, aiming at 50.0%.
On H4, a correction of the uptrend is also continuing. The Stochastic values are in the overbought area; a Black Cross may be giving another signal of further correction. The aim of the decline is at 225.00 USD. However, a deeper correction to 218.00 USD is also possible. After testing the support, the pair may go on developing the uptrend.
The market still has a range of opinions about the future of the ETH and its real value. For example, in ConsenSys, they think that the ETH is underpriced. With time, they say, it may reach the price of the BTC. Since the beginning of the year, the situation around the ETH has improved significantly, which may be a serious base for such forecasts. For example, in January the ETH capitalization was 10 times lower than that of the BTC, while the volume of the leading cryptocurrency was two times higher. Currently, the situation is changing radically, and not in favor of the BTC.
A famous crypto trader Peter Brandt is sure of the stable perspectives of the ETH, and his confidence became even stronger after the ETH broke away an important resistance level against the BTC. And if the ETH takes a confident ascending course, a vast majority of cryptocurrencies will follow in tow.
The ETH has a fundamental foothold that has not realized its full potential yet. This is the Ethereum 2.0 network that market participants have been expecting for several months. The company has not yet voiced the date of a test launch, it is expected just “one of these days”. This summer, the launch remains possible, and if all the expectations are fulfilled (from passive income to the solution for the scalability problem), the ETH future will be bright.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Any predictions contained herein are based on the author’s 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.
This article was originally posted on FX Empire
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