Time to buy the dip?
- Ethereum back in the green after testing the waters below $100.
- ETH/USD is still range-bound in spite of slight market recovery.
Ethereum explored new 2018 lows in a fresh round of declines that took effect in the evening (GMT) session on Wednesday. The market is slightly in the green as bulls return to revenge after falling victim to yet another slide. Ethereum has added 1.02% on Thursday after pulling back from the lows around $95.64.
The 3rd largest cryptocurrency by market capitalization trading volume is on the rise. The rise is as a result of the selloff that has become unstoppable. Its 24-hour trading volume is at $2.1 billion up from $1.9 billion at the close of the session on December 5. However, the market capitalization continues to thin. It currently dances at $10 billion compared to $11.4 billion in the same period.
Although there has been a reversal from the yearly lows, Ethereum is still range-bound. The range limit at $126.73 is a significant hurdle. However, the gap between the moving averages is closing as buyers increase their entries. The RSI on the hourly range chart struggling to hold ground and avoid the oversold regions. On the contrary, the MACD sends a different signal as it advances deeper in the negative zone. ETH/USD is likely to hold position above $100 in the meantime, but a correction out of the range resistance will not be an easy task for the bulls.
The drop below $100 was a great time for investors to buy in the dip. Ethereum rebound is inevitable, however it might take longer. According to renowned experts in the industry, cryptos will soon start to reverse the trend as we start the Q1 of 2019. Meanwhile, this could be the best time to buy ETH while the price is low in readiness for the impending bull rally.
ETH/USD 1-hour chart