Since our last weekly review, we had a rather eventful week and the battle continues between Ethereum’s Bulls and Bears. In fact, the Bulls and Bears’ battle was the theme in Cryptocurrency land during the last 2 weeks and the Hot topic was the “Cryptocurrency bubble”.
Since last week, our Research Team shared multiple updates to keep our readers up-to date:
Ethereum weekly price update where we covered Ethereum’s price evolution for the Quarter, month and the first week of July.
Is the Cryptocurrencies bubble about to burst? Our answer to this frequently asked question.
Today, we will take a look at what happened since then and what the outlook looks like for the upcoming week. To do so, we will first review the news and events from last week and review the price action as well.
News and events
The “concerning” news from last week were mostly revolving around:
- The risk associated with Bitcoin’s upgrade (a possible split rendering some coins valueless if the proper steps are not taken) and the difficulty the Bitcoin community is having to reach an agreement on the next step.
- Hacking and security issues that were raised this week after $30 Million Ethers were reported as stolen yesterday. Another $7 Millions were reported stolen after a hack on Coindash earlier this week.
Some positive news came out as well and helped with the recovery in Ethereum price:
- Bitcoin’s upcoming upgrade: Possible consensus reached as major miners started signaling SegWit2X
- 34 new members joining the Ethereum Alliance, new members include Scotiabank, Cisco, Mastercard and the Government of India.
Given how important the concerning news were this week, we believe Ethereum held up relatively well. We will look at the details in the price review below.
Ethereum price review
You can see from the chart above how Ethereum’s price touched the bottom of the descending channel and bounced off the key level of $150. The bounce was impressive as in a matter of 48 hours, Ethereum’s price went from the bottom of the channel at $138 touched the top and broke briefly above the top to reach $257. Since then, it fell back within the descending channel yesterday.
As of today, Ethereum is trading above $220 so we are above the falling channel.
What this tells us is clear: The Bear and Bull battle is still ongoing, yesterday the Bears won and today, the Bulls as regaining control. This is a crucial time for Cryptocurrencies in general but overall, we are still maintaining an overall bullish outlook.
It is worth mentioning though that if we step aside from what’s going on in the Cryptocurrencies world, there is a Bull and Bear battle going on in a few segments of the markets, we have seen a spectacular one in Silver and last week, we saw markets disconnect when the Fed spoke, we are even seeing asset classes that should be having a negative correlation moving up or down together. This high volatility we are seeing during the 2nd half of 2017 was actually signaled earlier this year by InvestingHavens’s Market Barometer.
- Great recovery for Ethereum after a 50% drop in 3 weeks.
- Key levels: Above $220, we are above the descending channel, with potential for another leg up. Above $125, we are still in a long term Bullish trend, bearish below.
- Risk: Watching closely the developments on the Bitcoin upgrade due for August 1st.