7 Bullish Ethereum Charts that says Ether is “Significantly Undervalued”

The price of Ether might still be struggling around $200 but its fundamentals are screaming bullish. Post Black Thursday sell off, Ether has been seeing a net outflow (62% of days) from exchanges, which is a sign of accumulation.

Blockfyre charted several progress indicators for Ethereum against its price development since its genesis and the growth had them stating, “Ethereum is significantly undervalued at current prices.”

The first metric is development activity which indicates the health of the network that has been constantly increasing since 2014. Regardless of the price movement, the Ethereum foundation and its developers have been hard at work.

As we reported, the Ethereum usage is at its all-time high with the amount of gas used continuing to surge. Gas usage indicates the growing adoption of the Ethereum network.

“More than 60 billion gas is now being used on a daily basis — a sign that Ethereum blockspace demand has never been higher,” pointed out Spencer Noon, head of Digital Currency Group.

Interestingly, the increased usage of the network also caused the gas price to jump 300% since the end of April at 40 Gwei. On May 21st, it went up as high as 50 Gwei and is currently averaging around 37 Gwei.

The number of addresses holding Ether has just hit a new peak at 40 million, up 350% since early 2018.

The total daily active addresses are also at 380k, a figure not seen in over two years.

The mean dollar invested age that measures how long the Ether has stayed in an address before being moved has also been increasing since 2018. Recently, this metric also hit a new all-time high which shows investors accumulating and holding their Ether at these price levels.

What’s even more interesting is that the same accumulation behavior is seen in miners.

Ether miners’ balance is in an uptrend since its creation indicating even miners who are required to sell their ETH rewards to cover their expenses are preferring to hold their coins.

DeFi is already growing like crazy, now its users are starting to go parabolic. Currently, there are 178k DeFi users which is up from 90k five months ago.

Also, seven of the DeFi projects have more than $30 million assets under management (AUM) while a year ago there was only one such project.

The system is maturing rapidly and now becoming an “economic vacuum for all assets,” starting with Bitcoin as since May 1st, DeFi project WBTC has minted $25 million.

In 2020, while the world went into chaos, Ethereum averaged 850k transactions per day, which is up from 580k in early January. This is three times more than bitcoin averages on a daily basis.

Also, ETH fees have totaled at $426k in the past 24 hours, which is more than 237x than the third largest cryptocurrency XRP. As of May 18, 2020, Ethereum fee based ‘revenues’ have totaled more than $15 million in 2020.

Moreover, “Ethereum is the only network besides Bitcoin that has a meaningful market for security paid in fees.”

But the most prominent growth has been seen in stablecoins, with more than $7 billion in fiat-backed tokens now issued on Ethereum. Over the past three months, a major demand for crypto dollars was seen in about $4 billion in new issuance.

Adding to this bullishness is the 1 million new shares of Grayscale Investments ETHE product that has been issued in the past 3 weeks, noted Noon. This is a sign that institutions are showing an interest in ETH, he said.

All of this progress while Ether price is at two-year low are “very promising” for Ethereum Network and the prices.

ETH Price Analysis

• Ethereum price stays above the EMA-50 as bulls took to gain market momentum in the medium-term.
• The market is going in favor of the bulls at the present in the short-term.

ETH/USD Medium-term Trend: Bullish

Key levels
• Resistance levels : $260, $270, $280
• Support levels: $85, $75, $65

ETHUSD is in an uptrend in its medium-term outlook. The close of yesterday’s session with a bearish doji candle at $175.72 is an indication of a trend reversal.

The daily candle opens today on a bullish note at $185.59 in the resistance area. Increase momentum by the bulls moves the price up to $191 in the resistance area.

Price is above the EMA-50 in the resistance area an indication that the price of Ethereum is in an uptrend.

The stochastic oscillator signal pointing down at around level 21% in the overbought region indicates that the price movement might change in the days ahead and in this case, a downtrend in the medium-term. Hence, a sell signal.

ETH/USD Short-term Trend: Bearish

The coin is in a bearish trend in its short-term outlook. The formation of the bearish inverted pin bar at $185.60 at the close of yesterday’s session in the support area indicates a trend reversal. Hence bulls’ brief return.

The bulls’ opens the 4-hourly session today at $185.59 in the resistance area and further increase to $189.39.

The formation of a bearish candle with a wick at $186.52 which indicates a reversal in trend drops the crypto price down in the support area after today’s opening.

Bull’s in-road back into the market moves the price up at $191 as the journey up north begins again.

With the price above the EMA-9 and the stochastic signal at the oversold region pointing upwards at around level 47%; these suggest the bulls are gradually returning into the market and the momentum in price might remain in control of the bulls, in this case, an uptrend in the days ahead in the short-term.

Thus, traders may consider buying with bullish reversal candlestick pattern as confirmation.

SmartCoin Achieves 62.7% in the First Two Months of 2020

As we have demonstrated since the start of the year the stellar gains made by Bitcoin and Ethereum, this allowed SmartCoin to book profits of 62.7% after only six weeks of trading. During the last week, we have seen both Bitcoin and Ethereum losing value after being heavily overbought. This price correction demonstrates the importance of buying at the right time and price and utilising Smartcoins ability to take profits along with short selling Bitcoin. SmartCoin identifies the growth opportunities early at lower prices. In the coming months expect more of the same, these conditions are challenging to make money on for a buy and hold investor unless you are actively trading the underlying asset.

ETH Price Analysis

Ethereum Price Analysis

After struggling to clear the $278.50 and $280.00 resistance levels, Ethereum price started a major decline. As a result, ETH to USD traded below the key $260.00 and $251.75 support levels.

Ethereum Price

Looking at the 2-hours chart, Ethereum price even settled well above the $250.00 level and the 50 simple moving average (2-hours, purple). During the decline, the bulls made a few attempts to protect losses below $250.00, but they failed.

More importantly, the price declined below a major contracting triangle with support near $256.60 on the same chart. It opened the doors for more losses below $245.00 and $240.00.

Finally, the price traded close to the $230.00 support level and formed a new weekly low at $231.15. It is currently correcting higher and trading near the $236.00 level. An initial resistance is near the $242.25 level.

It coincides with the 23.6% Fib retracement level of the downward move from $278.12 to $231.15. If there is an upside correction above the $242.50 level, the price could recover towards the $251.75 and $255.00 resistance levels.

The 50% Fib retracement level of the downward move from $278.12 to $231.15 is also near the $254.63 level. Conversely, Ethereum price might continue to move down below $232.00 and $231.15.

In the mentioned case, the price could heavily below $225.00. The next major support is seen near the $220.00 and $218.00 levels.

Overall, Ethereum price is trading near the key $230.00 support area. Therefore, it could either start a fresh increase towards $254.63 or extend decline towards $220.00.

Ethereum (ETH) Price Analysis (February 24)

• Price now trades in the range above the resistance level.
• The crypto is in a strong up move. Buyers are in control of the market trading in the upper resistance level.

ETH/USD Medium-term Trend: Bullish

• Resistance levels : $280, $300, $320
• Support levels: $110, $100, $80

The coin continues in a bullish trend zone in its medium-term outlook. Ethereum is forming an ascending triangle and looks bullish.

The bearish momentum returns within the range yesterday after a drawdown of $256.30 in the support area by the bears. With the formation of a bullish marubozu candle, $262.13 the price rises to $276.20 in the resistance area during the yesterday session.

The daily opening candle today at $275.59 in the support area is bearish. This further drops to $266.06 in the support area.

With the price above the two EMAs and the stochastic signal pointing up at around level, 71% suggest that ETHUSD momentum in price is in an uptrend in the medium-term perspective.

ETH/USD Short-term Trend: Bullish

ETHUSD short-term outlook continues in a bullish trend market. The close of the 4-hourly session yesterday candle $275.59 with a wick suggests exhaustion of the bullish momentum hence the bears’ brief return.

The bears’ pressure on the cryptocurrency at $275.29 in the support area led to a drop in price as the 4-hourly session opens today.

The crypto further drops to $266.06 in the support area. Price is above the two EMAs and trades around the resistance area within the range imply the momentum in price of the coin is in an uptrend.