By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
The second cryptocurrency in terms of capitalization, the Ethereum, continues a downward correction. The test of the important support level of $ 165 is close; in this case, the buyers will have to demonstrate a rebound to avoid a further decline. It is possible that the ETH is falling in connection with a strong Bitcoin correction. All the altcoins, in general, remain under pressure and some argue that the timing of the bullish rally is almost over.
However, on 10 August 2019 Nick Patel has done a survey on his Twitter account, asking the cryptocurrency community for the possibility that the EURUSD will rise above $ 1,000. 54% of the answers were in favor of this growth. So, many are still confident of a next wave of growth. At the same time, 34% of non-professional respondents voted against the growth of the second world cryptocurrency in the area of the highest local last year. The ETH is trading at around $ 180, so the increase over $ 1,000 is a growth of more than 5.5 times, which seems too optimistic in the current market situation.
The market is overwhelmed by positive forecasts for the future of the BTC; no one has yet come true, moreover, digital gold is diminishing. As we remember, Max Keizer, the TV show host, was expecting a $ 15,000 escape, so Goldman Sachs promised growth at $ 13,971. The principal analyst of Fundstrat Global Advisor Tom Lee expressed another support for Bitcoins in relation to the general world instability. However, he had expected new and new heights by the end of 2019 before.
A positive sign of the potential growth of the main altcoin is the fact that Coinbase has started using the Ethereum update for better receipt of USDC payments. Innovation not only reduces the cost of payments but also prevents fraudulent transactions. This is the first commercial payment project based on Ethereum for Coinbase Commerce.
In the daily time period, the Ethereum demonstrates another impulse of decline, aiming for the corrective level of 76.0% ($ 163.20) Fibo. With such a rate of decline, the most likely scenario may not only be a corrective phase, but a reduction that points to the main support at $ 100.03. However, a rebound and the formation of a growth impulse must not be excluded. A convergence, forming on the MACD, confirms this idea. The pullback target is close to resistance around 50.0% ($ 231.50) Fibo.
On H4, the Ethereum shows a sharp decline, approaching 76.0% ($ 163.20) Fibo. Meanwhile, the stochastic entered the oversold area, which is another confirmation of the pullback. However, a clear signal of the pullback would be only a gold cross in the oversold area of the oscillator. The short-term goal of the pullback could be $ 200.50.
Any provisions contained in this document are based on the particular opinion of the authors. This analysis should not be considered as trading advice. RoboForex cannot be held responsible for the results of the negotiations deriving from the reliance on commercial recommendations and reviews contained in this document.