Analysts have begun to bet that second-largest cryptocurrency is primed to see some upside as the technical and fundamental case for the asset has improved.<\/p>\n
Related Reading: Crypto Tidbits: Satoshi Isn\u2019t Dumping His BTC, China \u2018Bans\u2019 Cryptocurrency Mining<\/a><\/h6>\nEthereum Market Volatility Is Coming<\/strong><\/h2>\nThe past few days have seen Ethereum contract around $200 to trade within an extremely tight range of 5% to the upside and downside.<\/p>\n
One prominent crypto trader illustrated<\/a> the stagnation in the ETH market with the chart below. The chart shows ETH’s price action tightening to form a textbook symmetrical triangle.<\/p>\n![\"\"](\"https:\/\/i0.wp.com\/pbs.twimg.com\/media\/EZBXfkgX0AAMr4W.png?resize=1200%2C706&ssl=1\")
ETH price chart from trader Byzantine General, who goes by @ByzGeneral on Twitter.<\/figcaption><\/figure>\nThe asset is nearing the triangle formation’s apex, indicating the presence of low volatility.<\/p>\n
Further corroborating the presence of low volatility is the Bollinger Band Width indicator, seen at the bottom of the chart above. It shows that the width of the Bollinger Bands is at 0.16 \u2014 about 90% lower than that seen after March’s crash and the lowest level since early-February.<\/p>\n
The trader who shared the chart above said that these two signs indicate that a “big decision” is to be made by investors soon.<\/p>\n
Related Reading: The $90 Million Bitcoin Pizza Story Has an Unexpected Silver Lining<\/a><\/h6>\nAnalysts Bet on ETH Upside<\/strong><\/h2>\nThat raises the pressing question: in which way will Ethereum breakout? What “decision” will ETH investors make?<\/p>\n
Analysts are currently expecting upside as opposed to downside.<\/p>\n
Mythos Capital founder Ryan Sean Adams indicated in a recent edition of his newsletter called “Bankless”<\/a> that Ethereum is “doubly” undervalued.<\/p>\nAdams cited the fundamentals of the cryptocurrency, showing that the demand for ETH transactions has skyrocketed over recent weeks. The increase in transaction demand has increased transaction fees, which is suggestive of a higher Ethereum price as can be seen in the image below.<\/p>\n![\"ETH](\"https:\/\/i0.wp.com\/cdn.substack.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good\/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff404cf8a-66ed-45df-ab62-469d617887b8_2312x1202.png?resize=871%2C453&ssl=1\")
ETH Price Vs Ethereum Blockspace Fees<\/figcaption><\/figure>\nBitcoin, too, is leaning bullish, boosting the chances Ethereum experiences upside.<\/p>\n
As reported by NewsBTC previously,<\/a> the geopolitical tensions between the U.S. and China have worsened. The U.S. is purportedly considering sanctions as Hong Kong continues to see growing protests over a proposed security law.<\/p>\nDue to the potential sanctions, the Chinese yuan has sunk. The foreign currency is currently trading at its lowest level since September 2019, the peak of the 2019 trade war.<\/p>\n
\nOffshore #yuan<\/a> weakens more than 200 pips to approach 7.17 per USD, hitting the weakest level since Sept 2019. pic.twitter.com\/CkE1TIR3RZ<\/a><\/p>\n— YUAN TALKS (@YuanTalks) May 27, 2020<\/a><\/p><\/blockquote>\n
The past few days have seen Ethereum contract around $200 to trade within an extremely tight range of 5% to the upside and downside.<\/p>\n
One prominent crypto trader illustrated<\/a> the stagnation in the ETH market with the chart below. The chart shows ETH’s price action tightening to form a textbook symmetrical triangle.<\/p>\n The asset is nearing the triangle formation’s apex, indicating the presence of low volatility.<\/p>\n Further corroborating the presence of low volatility is the Bollinger Band Width indicator, seen at the bottom of the chart above. It shows that the width of the Bollinger Bands is at 0.16 \u2014 about 90% lower than that seen after March’s crash and the lowest level since early-February.<\/p>\n The trader who shared the chart above said that these two signs indicate that a “big decision” is to be made by investors soon.<\/p>\n That raises the pressing question: in which way will Ethereum breakout? What “decision” will ETH investors make?<\/p>\n Analysts are currently expecting upside as opposed to downside.<\/p>\n Mythos Capital founder Ryan Sean Adams indicated in a recent edition of his newsletter called “Bankless”<\/a> that Ethereum is “doubly” undervalued.<\/p>\n Adams cited the fundamentals of the cryptocurrency, showing that the demand for ETH transactions has skyrocketed over recent weeks. The increase in transaction demand has increased transaction fees, which is suggestive of a higher Ethereum price as can be seen in the image below.<\/p>\n Bitcoin, too, is leaning bullish, boosting the chances Ethereum experiences upside.<\/p>\n As reported by NewsBTC previously,<\/a> the geopolitical tensions between the U.S. and China have worsened. The U.S. is purportedly considering sanctions as Hong Kong continues to see growing protests over a proposed security law.<\/p>\n Due to the potential sanctions, the Chinese yuan has sunk. The foreign currency is currently trading at its lowest level since September 2019, the peak of the 2019 trade war.<\/p>\n Offshore #yuan<\/a> weakens more than 200 pips to approach 7.17 per USD, hitting the weakest level since Sept 2019. pic.twitter.com\/CkE1TIR3RZ<\/a><\/p>\n — YUAN TALKS (@YuanTalks) May 27, 2020<\/a><\/p><\/blockquote>\nRelated Reading: The $90 Million Bitcoin Pizza Story Has an Unexpected Silver Lining<\/a><\/h6>\n
Analysts Bet on ETH Upside<\/strong><\/h2>\n
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