Ethereum recovers 15%, is it showing excessive conditions?

On December 8, within 15 minutes, the price of Ethereum increased by more than 15% compared to the US dollar.

Several traders expected that Ethereum (ETH) would experience a short-term corrective rally after falling to an annual low of around $ 82.

A local fund

Before the drop in prices, an important technical analyst with an online alias "The Crypto Dog" He said that Ethereum has shown the sign of a fund and could recover at a level of resistance.

"ETH doubled the value of the chart to 30 minutes while BTC made a new low, the first sign of a fund on the relationship," said the analyst.

Following the recovery, the analyst said that a price increase of $ 100 is a possibility, given the increase in the daily volume of the digital asset.

"He just broke that resistance in. At the next resistance now and it will take a lot more firepower to break." 028 Very impressive display, impressive volume, I'd like to see this test $ 100-102 today. "

However, a trader said that a further fall in the $ 85 support level and finally $ 50 remains a possibility if the business can not sustain its volume.

"I've seen people target crazy low targets for ETH but before you go to $ 4, you realize there are supports to break, right? $ 85 still valid as support and $ 50 is another lower option. It's like the euphoria of December 2017, but on the contrary now. "

Currently, it is difficult to predict the price trend of ETH because it has always been one of the most volatile cryptocurrencies in the global market alongside the Bitcoin Cash (BCH) and ERC20 tokens.

However, a positive element in the Ethereum trend is that in recent weeks Ethereum has managed to maintain a relatively high daily volume of around $ 2 billion. As of December, the volume of ETH remains broader than that of Bitcoin Cash, Stellar, Ripple and Bitcoin SV combined.

Given that ETH has lost 93% from its all-time high, more than any top 5 cryptocurrency, if the crypto-market trend reverses, the oversold conditions of ETH could allow for the activity to bounce with greater intensity.

Positive developments in the Ethereum ecosystem

Su Zhu, CEO of Three Arrows Capital, a forex hedge fund, said the Coinbase team, including CEO Brian Armstrong, was a longtime supporter of Ethereum and that the integration of new ERC20 assets, most of which based on the Ethereum protocol, is a positive development for the Ethereum community.

"You do not see a problem with Coinbase that lists the ERC20 small market cap tokens," He said Zhu. "They already own a portfolio, DEX and broker-dealers and are huge supporters of the Ethereum ecosystem, I might not agree with their opinions, but I respect their commitment to a vision.The market will decide if they are right or wrong ".

ConsenSys, the largest blockchain software company on the market, has also promised to start working on products that can be actively used by users in the market to increase the adoption of Ethereum.

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