Ethereum price retraced along with the other cryptocurrencies early 2018. However, we can see from the chart below how it is holding rather strong above the 800 USD Level. That is great news for Ethereum Bulls and at this point, we see 2 potential scenarios:
Scenario # 1: A long consolidation period for Ethereum Price prior to another leg up especially considering that there are many potential positive catalysts for Ethereum in 2018 mainly around the Code and scalability upgrades.
For the next leg up to happen however, there has to be an important announcement from the Ethereum development team or a rapid recovery in the cryptocurrency sector.
Scenario # 2: This is a scenario that investors need to consider closely. If the current support around the 800 USD area is lost due to the continuous pressure in the cryptocurrency market, we might see Ethereum price Backtest the 400 USD level. Expect that move to be sharp and quick and be ready for it will probably represent a decent entry or re-entry for Ethereum Bulls.
We still believe that Ethereum has a solid intrinsic value for investors. The development team needs to work on the scalability of the Cryptocurrency as it is currently being tested with extreme volumes: Ethereum based DApps, ICOs, Trading transactions, Transfering funds between exchanges / wallets. In short, Ethereum as a technology, including the smart contracts feature is extremely popular and the Dev team needs to work on this “good to have” problem.
With the upcoming hardfork, we should see the solutins to scalability materialize. Obviously there is always enormous risks with each hardfork and software upgrade but we believe the team behing Ethereum and the Ethereum foundation can handle it.
Note that the chart highlighted in our article today is an excerpt from our Sister site Investinghaven.com research service where they provide Blockchain stocks and Cryptocurrency research and price analyses.