Despite the recent market retracement, which has caused the price for Bitcoin to drop beneath $8,000 and the price of Ethereum to fall to $245, one Reddit user has made a compelling case that Ethereum is in a prime position and is poised to spring into action.
Nullius_123 began by stating that the ratio of Ethereum price to new wallets is low by historical standards, yet the number of new wallets continues to rise. He substantiated this with the following chart showing ETH price and new addresses;
Image Source: https://www.reddit.com/r/ethtrader/comments/bw8hxr/eth_price_is_spring_loaded_for_increase/
Nullius_123 continued to state that Ethereum is currently trading at a heavy discount, and this is largely due to the fierce competition that Ethereum experienced during the great 2017 bull run, when projects were making an overwhelming amount of promises, none of which they followed through on.
Looking toward the future, Ethereum new wallets and active wallets are now nearing all-time high levels. This combined with the fact that the trading volume on Ethereum is now nearing fresh ATH levels leaves Ethereum spring-loaded to push much further higher during the upcoming bull run.
Nullius_123 believes that at some point in the next few months, between now and when the Ethereum 2.0 upgrade gets released, these metrics should help push Ethereum higher. Furthermore, Nullius_123 states that this will likely also coincide with the upcoming Bitcoin pre-halving rally, which together should help push Ethereum to fresh new heights.
Nullius_123 finished his post by stating the trauma from the long 2018 bearish run is fading fast, much quicker than he had imagined, and no other blockchain (except Bitcoin) has the same network effect and level of liquidity as Ethereum does.
Let us continue to quickly highlight some levels of long-term resistance moving forward for Ethereum.
Ethereum Long-Term Price Analysis
ETH/USD – MEDIUM TERM – DAILY CHART
Taking a look at the long-term chart for Ethereum above, we can see that the first level of substantial resistance for Ethereum to overcome toward the upside is at the $300 level. Above this, the buyers will meet more resistance at the long-term bearish .382 Fibonacci Retracement level (drawn in red), priced at $370, followed with resistance at the $400 level.
Above $400, further higher resistance is found at the bearish .5 Fibonacci Retracement level at $459, followed by resistance at $500. If the buying continues above $500, the next levels of serious resistance are located at $548, $620, $675, $750, $820, and $900.