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Ethereum Bulls Eye $180 But Bottom Still Not Confirmed

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Christine Vasileva | Jan 30, 2020 | 13:05

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Ethereum bulls eye $180 Ethereum

Ethereum Bulls Eye $180 But Bottom Still Not Confirmed

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Christine Vasileva | Jan 30, 2020 | 13:05


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Ethereum (ETH) may be ready for a new rally, though establishing a bottom may only be known in hindsight. ETH prices against BTC pairing look worrying as the asset continues to break to new range lows.


ETH Starts Showing Upside Potential

ETH has recovered slightly from the downward selling pressure over in the past three months, but it is still early to call the bottom. Right now, the asset is fluctuating in a range and looks likely to break lower unless new volume arrives.

At this point, analysts view charts as rather uncertain, and not entirely promising of a bullish move. Ethereum has remained mostly depressed and is overdue for a move against Bitcoin (BTC).

ETH traded at $176.50, though selling has depressed the price and the $200 range has been abandoned for good. But now, trading volumes remain relatively high at $10 billion in 24 hours, sparking hopes of more active trading.

More than $1 billion flows into ETH markets from Tether (USDT), and above $770 million from the BTC markets. But this heightened activity is yet to push the price upward, as ETH is going through another transition period with doubts regarding the effect of proof-of-stake and ETH 2.0.

For now, the Ethereum market price looks confusing, with the potential to find a new direction. But with BTC rallying, altcoins are still hesitant for bigger gains.

The ETH futures market is slimmer, and trades may push the price more than expected. Still, analysts believe Ethereum is capable of regaining $200, with a big upside potential.

Staking, DeFi, May Define Ethereum Price

The Ethereum network hashrate is also recovered and relatively flat at nearly 300,000 GH/s. Miners still widely support the network, despite the aim to switch to staking. Right now, ETH is still seeking a use case, and staking is not yet central to the network.

Ethereum is also being locked in DeFi schemes and lending. However, the demand for ETH is not as high in comparison to the ICO gold rush in 2017 and 2018. Vitalik Buterin, co-founder of Ethereum, has also spoken against the practice of ETH-based lending.

Additionally, the Ethereum ecosystem will have to absorb the dissolution of the Digix DAO, one of the earlier decentralized organizations. Digix will redistribute the ETH invested, which may put pressure on the markets. Digix was notorious for having more than 20,000 ETH stolen by a hacker, then returned about a year later.

What do you think about the potential of ETH to rally? Share your thoughts in the comments section below!


Images via Shutterstock, Twitter @CryptoDonAlt @VitalikButerin @CryptoT70653485

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