Ethereum Back at $300: Now What?
Ethereum’s pendulum swing continued on Tuesday, bringing prices back to the $300 level. The latest move has many investors asking – what’s next?
ETH/USD Price Levels
Ether values traded within a narrow range Tuesday, hitting a low of $298 and a high of $303. Prices were last seen trading right around $300.
Last week, ETH/USD fell to more than one-month lows as investors dumped altcoins in favor of the original bitcoin. Ethereum’s gains have been mediocre since mid-October when prices approached the $350 level.
Ether prices are slowly recovering versus the greenback, but continue to trade well below the $310 level that is widely seen as a major zone of resistance. The more immediate technical hurdle that needs to be crossed is between $300 and $305. Traders should look for a break above $315 to confirm a longer-term buy signal. Action below that level is likely to generate further headwinds for ether.
Long-term upside appears to be capped around $340-$350, which represents the high from mid-October. For the time being, it looks like the status quo will prevail.
At present values, Ethereum is capped at $28.8 billion, according to CoinMarketCap. That’s second only to the Bitcoin network, which is valued at a whopping $120 billion.
Struggling for Direction
China’s ban on initial coin offerings (ICOs) has done little to curb the appeal of crowdraise technology. What it did do was zap the life out of Ethereum, the platform most ICOs use to launch their token sales. Before the September ban, ether prices were hell-bent on cross $400. Prices have failed to generate the same momentum ever since.
Neither has the successful Byzantium hard fork generated much upside for ether prices. The fork came into effect on Oct. 16 when Ethereum reached block 4,370,00.
To be sure, Ethereum’s long-term prospects are as solid as they come. As the infrastructure of choice for many developers, ETH is one of the few bitcoin competitors that is expected to stick around for a while.
Of course, this won’t alleviate day traders who are looking for a meaningful rally in ether. Since early September, prices have dropped from nearly $400 to around $230.
Featured image courtesy of Shutterstock.