Ethereum (ETH) has suffered unprecedented sales pressures in recent weeks. This pressure was the result of the growing number of ETH shorts on exchanges like Bitfinex. Recently, Jeremy Rubin, founder of MIT Digital Currency Initiative, said that the price of Ethereum (ETH) will go to zero. The reasoning behind this is that people do not necessarily have to use ETH for Ethereum's blockchain smart contracts. This is partially true and the founder of Ethereum (ETH), Vitalik Buterin, has recently dealt with this problem quite well. He highlighted several ways in which Ethereum (ETH) will remain in use, for example by blocking proposers. However, in a market where people make such statements at face value, a strong reaction was expected.
The price of Ethereum (ETH) declined sharply as it fell below EMA at 21 weeks according to the weekly chart above for ETH / USD. Rubin's statement added fuel to the fire and helped to accelerate the decline. Fortunately for investors of Ethereum (ETH), the price is now at a minimum. However, many people are still in doubt that Ethereum (ETH) can reach a price above $ 1,000 again. Last week, Tom Lee of Fundstrat came to the defense of Ethereum (ETH). He stated that the price of Ethereum (ETH) will reach $ 1900 in 2019. This seems very plausible considering that Ethereum (ETH) has already started a new trend. The RSI for the ETH / USD chart described above has finally emerged from a wedge that falls and has started a new trend. Analysis of waveforms shows that Ethereum (ETH) could be on the edge of a major breakout.
Ethereum (ETH) has already broken its bearish trend against Bitcoin (BTC). The weekly chart above for ETH / BTC shows that Ethereum (ETH) has already started a new trend against Bitcoin (BTC). The RSI for ETH / BTC has also hit the bottom and is ready for a rally at the beginning of October. The analysis of wave trends also confirms a trend reversal. As we have seen before, Ethereum (ETH) forms an emerging wedge followed by a falling wedge. The price is now split from the wedge that falls and must rise to enter a growing wedge. It should be noted that the ETH / BTC pair still remains below the 21-week EMA. However, the price is unlikely to fall further. The volume for ETH / BTC has been the lowest for over two years.
There is still the possibility that Ethereum (ETH) does not meet as aggressively as in 2017. This is because Ethereum (ETH) has broken its upward trend in the dominant market. This is also the reason why we have witnessed the rise of Ethereum Classic (ETC) against Ethereum (ETH). The same is true of many other altcoins. As we formally enter a new cycle, we will see that Ethereum (ETH) will have difficulty making progress at the same pace as before. Investors seeking higher returns often avoid coins that can be shortened to margin exchanges like Bitmex or Bitfinex. Even the future CBOE Ethereum (ETH) are behind the corner and will make this money easier and safer. That said, Ethereum (ETH) will continue to have a place in the market. It might lose its place at another platform currency, but it is extremely unlikely to go to zero.