Ethereum’s price action has been fully exposed to Bitcoin’s recent bearishness over the past several days and weeks, struggling to garner any independent upwards momentum. This price action has led ETH to remain stuck beneath $130, which appears to have become a resistance level for the cryptocurrency.
In spite of its overt bearishness, one analyst is noting that math-based technical analysis points to the possibility that ETH will soon see significant upwards momentum, as his chart signals that the Ethereum bear market actually ended in September of this year. This means that 2020 could mark the start of its next bull run.
Bears Remains in Firm Control of Ethereum as Investor Sentiment Degrades
Over a one-week period, ETH has been facing heightened bearishness, as the cryptocurrency surged as high as $136 this past weekend before incurring a significant influx of selling pressure that led it down to its recent lows within the lower-$120 region.
One factor that has been negatively impacting investor sentiment is the fact that the ring leaders of the now defunct PlusToken Ponzi scheme hold over $100 million worth of ETH tokens that were obtained by exploiting the platform’s users.
The massive number of tokens they hold could provide a steady stream of selling pressure onto the markets for the coming months and years, which is one concern pervasive amongst ETH investors.
“$eth inflows to huobi positive by 100k again lmao. Plus token bringing the pain. A bull market in these conditions requires someone to constantly absorb 100k eth dumps until the scammers are done dumping 100M of stolen Ethereum,” Gainzy, a popular cryptocurrency analyst on Twitter, explained.
$eth inflows to huobi positive by 100k again lmao. Plus token bringing the pain.
A bull market in these conditions requires someone to constantly absorb 100k eth dumps until the scammers are done dumping 100M of stolen ethereum.
— Gainzy Claus (@CryptoGainz1) December 23, 2019
Could 2020 Hold Massive Gains for ETH Despite PlusToken Controversy?
Bitcoin Jack, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that a mathematical-based analysis of Ethereum’s price action shows that the crypto’s bear market may have actually ended in September.
He further goes on to note that the same analysis signals that 2020 could hold some bullishness in store for ETH.
“I am adding to my position, willing to risk up to 3% on my entire account. Remember, this is a positional long-term trade. Math implies bear market for ETHBTC was over in September and bull market is on the menu in to 2021,” he explained while pointing to the chart seen below.
I am adding to my position, willing to risk up to 3% on my entire account
Remember, this is a positional long term trade
Math implies bear market for ETHBTC was over in September and bull market is on the menu in to 2021 pic.twitter.com/R1ZG35uEMD
— //Bitcoin 𝕵ack (@BTC_JackSparrow) December 26, 2019
It does appear to be a strong possibility that how Bitcoin trends in the coming weeks and months will have a strong influence on Ethereum, and it still remains unclear as to whether or not ETH will be able to incur upwards momentum independent of the rest of the markets.
Featured image from Shutterstock.