Crypto AnalysisEthereum Price Analysis

Ethereum (ETH) Unable to Find Support

Ether started the week in the positive mood, but the sellers came hunting again on Wednesday. The digital coin is now trading at $406.90, losing a bit over 2%. The recent bearish outlook in the short term somewhat faded out after the price went above the resistance at $395. Dmitriy Gourkovskiy, Chief Analyst at RoboForex, says that Ether even had chances to remain above $415, where it traded last week, but failed because of the negative market sentiment.

Curiously, Ethereum started going up from $370 and was quick in breaking out through $390 and $395; this added some chances to the digital currency’s rise to reach $430, but today, the market is very uncertain again.

In the short term, if Ether is unable to remain above $395, another test at $360 may be needed to attract the buyers. With the negative fundamentals, however, the bears may target another price level, such as $317 or $320.

For now, $390 is the support, while the resistance is at $417. The MACD is in the negatives, moving along the line, and is still issuing a sell signal. In the meantime, Stochastic took some attempts to recover, but now is headed down again without giving any clear signal.

The most important news for Ether lately has been the one around Bitmain. The tools developed by this company target Ether miners, and this may provoke controversies against Ethereum 2.0 platform, that was announced as long ago as November 2017.

The issue is quite tangled here. On the one hand, nobody can stop Bitmain from launching their Antminer E3 for Ether mining (this is going to take place by mid July 2018). As per technical specs, Antminer E3 performance is going to be nearly twice as effective compared to graphical processing unit based solutions. Every customer will be able to buy only one device, while those who reside in China won’t be allowed to buy even a single one.

It is still unclear whether Antminer E2 mass production will influence the graphical board market, as some think the ‘second hand’ market will be booming, while others assume it’s not the case yet. Anyway, Antminer E3 is going to be quite expensive, $800 per unit; this can pay off only in around 4 or 6 months, and tht only wit high power consumption.

This drives us again to Ethereum 2.0, a new hard fork discussed in November 2017. If this really takes place, even new mining device launch won’t be able to influence Ether price. The miners are voting now, and, currently, votes for hard fork are prevailing. However, the public vote may signal that even Ethereum owners do not have a single opinion on this, and this may become a very serious issue.

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Disclaimer

Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

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