Ethereum Could See More Pain Before Face-Melting Bull Market: Analyst

  • Ethereum may be due for one last leg down.
  • Despite ether’s bearish price action in 2019, it has made significant progress.
  • The cryptocurrency’s growing fundamentals will likely eventually catalyze a new bull market.

Just like bitcoin, Ethereum has been correcting ever since it posted a high in June 2019. From last year’s high of $ 363.30, the number two cryptocurrency has lost over 62% of its value. Those losses are significantly magnified if you consider that Ethereum traded at $ 1,424.30 in January 2018. From the all-time high, ether has already shed over 90% of its value.

To some retail traders, the extreme losses would indicate that the bottom is on the horizon. However, one analyst believes that investors are likely due for more pain in the form of a persistent bear market.

Ethereum Could See Double Digits Before It Recovers

Ethereum’s 2020 could start off on the wrong note. Analyst Crypto White Walker expects Ethereum to enter a period of depression. In the psychology of market cycles, depression is the stage where all hope for recouping losses are lost. This is the phase where many retail traders capitulate and never look back.

Ethereum appears to be entering the period where market cycles are rebornEthereum appears to be entering the period where market cycles are reborn
Ethereum appears to be entering the period where market cycles are reborn. | Source: Twitter

The analyst draws inspiration from Ethereum’s price action in 2017. At the time, the token was trading below $ 8.00. It slumped to $ 7.00 before igniting a mega bull rally. According to the trader, the cryptocurrency will likely go through one more painful leg down before it can recover.

Crypto White Walker sees one more trip into oblivion before Ethereum can launch a bull rallyCrypto White Walker sees one more trip into oblivion before Ethereum can launch a bull rally
Crypto White Walker sees one more trip into oblivion before Ethereum can launch a bull rally. | Source: Twitter

The good news is that once the cryptocurrency bottoms out, it might reward long-term investors with substantial gains. Crypto White Walker predicts that after Ethereum nosedives to below $ 100, it would skyrocket to $ 1,000 and above in 2021.

Ethereum holds the promise of recovering $ 1,000 next yearEthereum holds the promise of recovering $ 1,000 next year
Ethereum holds the promise of recovering $ 1,000 next year. | Source: Twitter

Ethereum’s Fundamentals Continue to Grow Despite Slumping Prices

Regardless of slumping prices, Ethereum’s fundamentals continue to progress.

One of its most notable advancements is the introduction of Decentralized finance (DeFi), which refers to financial tools built on top of Ethereum’s blockchain. These tools offer certain advantages such as better access to financial services and resistance to censorship. DeFi users voluntarily lock their ETH on DApps that offer services such as lending pools in exchange for payouts.

DeFi offers users the opportunity to earn attractive payoutsDeFi offers users the opportunity to earn attractive payouts
DeFi offers users the opportunity to earn attractive payouts. | Source: Twitter

Those in the know are taking advantage of this profitable feature. So far, over 3 million ETH are locked in DeFi.

Millions of ETH taken out of circulation and locked in DeFiMillions of ETH taken out of circulation and locked in DeFi
Millions of ETH taken out of circulation and locked in DeFi. | Source: DeFi Pulse

In addition to the parabolic rise of ETH holdings in DeFi, the number of unique Ethereum addresses continues to grow. It surged from over 50 million last year to more than 84 million this year. This suggests that the number of Ethereum users is growing.

The number of Ethereum crypto addresses is experiencing exponential growthThe number of Ethereum crypto addresses is experiencing exponential growth
The number of Ethereum addresses is experiencing exponential growth. | Source: EtherScan.io

Lastly, Ethereum maximalists are excited for the scheduled launch of Ethereum 2.0’s phase 0. The first step in the transition from proof of work to proof of stake is expected to take place in the first quarter of this year. In phase 0, users will be able to stake their ETH holdings.

From a fundamental perspective, it seems that Ethereum is making exciting developments. It’s most likely only a matter of time before the price catches up.

Disclaimer: The above should not be considered trading advice from CCN. The writer owns Ethereum and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.

This article was edited by Sam Bourgi.

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Ethereum – CCN.com

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