At spot prices, bears are both stress testing the dApp ecosystem and putting to test the resolve of all market stake holders and investors. Of course, it’s a big fall, from $1,400 to less than $100 has been damaging for investors, businesses and developers.
Price Analysis: ETH/USD
Every week, ETH/USD is down 17% in the past week and quite stable in the last day and hour. And even as bears dig in, ETH is down 85% from the 2018 peaks and as Fibonacci retracement rules demand, a natural correction cannot be avoided.
This is the reason why investors and traders across the board expect prices to bounce back and close above $100 by the time this week ends. Once this happens, then it is possible that ETH/USD would expand to $130 or more. If not, it will definitely drop to $50 or less.
The trend is very clear, ETH/USD is bearish and oscillating within a tight $17 range with limits at $100 and $83. Unless otherwise there are gains above $100, bears are in control and considering the rate of recent price erosion, we cannot discount the possibility of prices breaking below $83.
In real sense, the price action of ETH/USD is still oscillating within the high-low of 7th December. If buyers will be in charge then there must be strong gains above the highs of 7th December at $100, while drops below its lows would lead to a sell off towards $50.
It’s obvious, bears are in control but at spot prices, prices are in range mode and accumulating. However, if bulls gain momentum and thrust prices above $100 then buyers of ETH have a chance.