Cryptocurrency Spotlight: Ethereum (ETH)

Ethereum (ETH) was a slow-motion train wreck for most of 2018.

Since the year began, ETH from just over $1,400 to $255.59. That’s quite a fall for the one-time high flier. But that’s to be expected when the coin was criticized for poor scalability, delays in transactions, higher transaction costs, and vulnerability to hacker attacks.

It didn’t help when Ethereum co-founder, Vitalik Buterin says there is no chance we’ll see “1,000-times growth” in the cryptocurrency and blockchain space again.

Now, the question on every one’s mind is can it rebound?

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At the moment, it’s a wait and see, but there are two catalysts.

One, the coin is aggressively oversold at support dating back to July 2017. As long as the coin does not break below this “line in the sand,” we could begin to see a potential recovery. Technically, it’s also oversold on relative strength (RSI) and Fast Stochastics.

Even MACD is sitting at a historic, unsustainable low, as you can see in the chart.

Again, as long as it doesn’t fall under its current low of $255.59, there’s a chance at higher highs. 

The other catalyst is the Chicago Board of Options Exchange (CBOE).

The CBOE is expected to launch Ethereum futures in 2018.

CBOE will reportedly base its ETH futures on Gemini’s market. The fact the CBOE is expanding futures offerings to include cryptocurrency says it’s here to stay.

CBOE launched Bitcoin futures trading towards the end of 2017 to allow traders to speculate the price of Bitcoin without owning BTC. The futures trading is said to have contributed massively to reducing the volatility of Bitcoin since December 2017.

Reports indicate that CBOE is waiting to be cleared by the Commodities Futures Trading Commission before launching it officially.

According to Chris Concannon CBOE’s Global markets president: “SEC announced that Ethereum is not a security. This announcement cleared a block which stood between us and Ethereum futures. We have been considering launching Ethereum futures since December 2017 when we launched Bitcoin futures.”

Ethereum Price Predictions through 2020

With less than two months left of 2018, some analysts still believe ETH can reach $2,500. Unfortunately, we don’t see that happening this year. While it creates great headlines, it’s not realistic given the coin’s performance for most of the year.

By the close of 2019, analysts believe it could rally to $14,000.

By the close of 2020, analysts say it could rally to as much as $31,000. All on increasing application uses, further adoption of its decentralized cloud-based applications, and further reliance on smart contracts. In fact, many believe that the more the ETH platform is used, the higher the value of the coin. 

While such predictions make great headlines, the slump leaves much to be desired.

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