Ethereum Price Analysis–Dec 4
Latest Ethereum News
It’s true that the bear market has been crushing and as prices threaten to fall below the important support level, companies are restructuring as their finances are squeezed.
One of them is ConsenSys—the NY based crypto startup and development studio, which in a letter, Joseph Lubin—who is also the co-founder of Ethereum, said the company must “regain the lean and gritty startup mindset” as they find themselves in an increasingly competitive universe. Although they could “succeed wildly”, the new phase dubbed ConsenSys 2.0 will be marked by better efficiency, accountability, and attention to revenue. According to Lubin, ConsenSys 2.0 will be all about “focusing, adding rigor, adding accountability, and opening ConsenSys up more to the world.”
To that end, projects that are underperforming will get the “ax” and the company’s investment wing will act more like a traditional venture accelerator. At the moment, the company has invested in more than 50 different blockchain projects by Oct 2018 and while recognizing that it was the crypto boom of 2017 that lifted ConsenSys to where they are, the CEO said they were better off if they had concentrated on two or three unique projects and let them “bloom”.
As a result, ConsenSys was forced to hire increasing their human resource to 1,100 across 29 countries. Therefore, for streamlining, all projects that have ConsenSys investment will be measured on three metrics: performance, social good and how it benefits the Ethereum ecosystem.
ETH/USD Price Analysis
At spot, ETH is down eight percent in the last week and as sellers press the sell pedal, we might see a situation where prices topple below $100. Of course, as mentioned in previous ETH/USD price analysis, that would be disastrous for miners and all stakeholders as hash would drop affecting the overall security of the network.
Now, as ETH/USD trade within a bear breakout pattern, we shall maintain a bearish outlook only fading that forecast if and only if prices rally above $160—our main resistance level previous support. If there is a break below psychological $100 round number, then we could see a new wave of panic sells sweeping across the market and for the first time since Q1 2017, ETH could test $40 or even $1—lows of Feb 2017.
Clearly, bears are in charge but before we liquidate–despite the last two week’s losses, we must see convincing losses below $100. This will not only thrash Fibonacci retracement level but would mean +90 percent drop from 2017 peaks.
However, if there is a revival and bulls build enough momentum driving prices above $130 in the process confirming a three-bar bull reversal pattern of Nov 28, ETH/USD could test $160 and later $250 boosting market confidence and further market investment.
All Charts Courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.