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ETH / USD fell five percent in the last week and the result is obvious. Prices are now traded under the psychological support of $ 200 that further guide the miners to losing territories. Even if we remain optimistic and expect prices to stabilize, dives below September lows could trigger the next wave of selling pressure pushing ETH / USD to $ 150.
Latest news on Ethereum
Falling and flat coating prices are not good deals from miners. And it does not matter the currency. The owners of the mining sector are businessmen eager to scalping the encrypted market, liquidating their ETH prizes for money in several trades. Although it appears that mining in other currencies such as Litecoin is increasing with hashing rates expanding 750% on an annual basis, ETH miners are facing an obstacle.
On the way to Serenity there is a mandatory implementation of Constantinople, a hard fork or an "upgrade" where the network must impose the draft EIP 1011 Hybrid Casper FFG. This will see a reduction in ETH premiums of 3 to 2 for block generation which, in the face of strong sales pressure and sales of further sales, is simply being reduced for the mining industry. Actually it did not take long before the side effect leaked.
A recent LongHash analysis shows that the Ethereum network is losing computing power while miners react to recent proposals. The hash power has decreased by 12% since August and while miners are the majority holders of the ETH stock, this could reduce the ETH in circulation. As a result, this could create an artificial demand that many hopes will raise the USD assessment of the ETH. This assumes that prices remain at spot levels.
If it falls, the miners would be on their knees in the loss-making territory at a major cost of electricity, mining equipment, transportation and pooling.
Price analysis of Ethereum (ETH / USD)
Weekly chart
The meltdown is active and ETH / USD has fallen five percent in the last week. It is clear from the chart that sellers are increasing and trading in line with the events of the week ending September 9th. All things constant, yesterday's fall and the break of the $ 200 main support line will most likely lead to less than $ 190 or Sep to trigger another wave of selling pressure towards $ 150 and $ 75.
This is illustrated in the previous ETH / USD price analysis, where our strategy was to maintain a neutral position until there are clear falls below September lows or rallies above $ 250- $ 300 resistance zones. Since the first one is happening, we suggest zooming in on shorter time intervals and waiting for a whole sales bar to close below the September 2018 lows before charging short circuits on back shots.
Daily chart
After two weeks of consolidation by October 15th, the ETH / USD volatility is back and what we have now is a bearish break. Well, this was unexpected considering the deep correction of prices in 2018 and today it should be final.
As determined by a top down approach, any solid below the October 11th low at $ 190 will turn on the next wave of selling pressure with the first targets at $ 150 or less. But, because of the peak in volumes – up from 48k on 28 October to 150 thousand on 29 October, we suggest you sell at spot prices. Therefore, considering the arrangement of the candles, the ideal stops for aggressive traders are at $ 210, given that the objectives remain as they are.
Disclaimer: The opinions and opinions expressed are those of the author and are not investment advice. Trading any form involves risks, as well as your due diligence before making a commercial decision.
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