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Ethereum Dropped Dramatically Since August Highs Of $490: Analysis

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Ethereum dropped dramatically since its August highs of $490 as the coin traded for $370 around 25% below this level as we are reading more in our latest Ethereum news.

While ETH is still far below the highs, the coin is printing a medium-term to long-term positive signs. One top crypto trader shared a chart where it is clear that the asset is breaking above the multi-week triangle pattern. The breakout suggests that there will be a continuation to the upside in the upcoming weeks. His bullish sentiment has been echoed by other market participants that see Ethereum’s medium-term trend as bullish.

eth price
Chart of ETH’s price action over the past few years with a Renko candle analysis by crypto trader Cold Blooded Shiller (ColdBloodShill on Twitter).

The leading Binance futures trader Logan Han expects for ETH to continue the ascent after forming a new bullish breakout. He noted that the coin broke above the descending triangle pattern after a prolonged consolidation phase suggesting a medium-term bullish trend. He shared a chart that shows that the head is entering the end of 2020 as ETH will continue ascending as it was seen in the middle of the year. This came shortly after he noted that the ETH price action looks similar to the one seen before the exponential rally at the end of 2017 and the start of 2018 as Ethereum dropped dramatically.

eth price
Chart of ETH’s price action since the middle of 2018 with an analysis by crypto analyst and top Binance trader Logan Han (@LohanHan_ on Twitter).

Others expect the asset to break even higher as one crypto analyst noted that as long as the cryptocurrency holds the $350 region on the macro time frame, it will move at $700 in the upcoming months. The charts show that the $350 region was pivotal for ETH over the recent years so, in 2017, it acted as a launchpad for the rally to $1,400 while in 2018 acted as a point where the asset started a dead cat bounce. The fundamentals of ETH are stronger than ever and as Heath Tarbert, the chairman of the US Commodities and Futures Trading Commission said that it has been impressed with the ETH period. Spencer Noon, the fund manager in the space, noted that there is a vast amount of on-chain trends that show that ETH is being used now more than ever.

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