Today, Ethereum is testing support after moving as low as $1800 with what analysts describe as a bearish trendline applying.
Ethereum extended its decline below the $1,850 support, like bitcoin. ETH even traded below the $1,800 and $1,750 support levels to move further into a bearish zone.
“The price tested the $1,700 level before it started a decent recovery wave,” writes Aayush Jindal at NewsBTC this morning. “Ether climbed higher nicely above the $1,880 and $1,950 resistance levels. The bulls pushed the price above the 50% Fib retracement level of the of the recent decline from the $2,280 swing high to $1,703 low.”
Jindal, amidst other analysis, points out the RSI of Ethereum against the dollar is moving toward 60, and that other metrics suggest that ETH may find it difficult to move above the $2500 mark.
With that in mind, some buy-and-hold Ethereum traders see long-term potential for this specific blockchain amongst its peers.
In describing the major differences between Bitcoin, the front-running cryptocurrency and Ethereum, which is widely seen as the runner-up, what many analysts site is Ethereum’s unique utility for smart contracts.
“Ethereum continues to get fundamentally stronger in terms of becoming a decentralized financial layer,” writes Martin Young at Beincrypto. Young shows that 25% of all Ethereum is now held in smart contracts.
Calling ETH the “King of dApps,” Ethereum enthusiasts point out that unlike other cryptocurrencies seen as investment tools or stores of value, Ethereum is useful in a variety of smart contract scenarios including smart cities programs, gaming algorithm development and more.
“Ethereum is the first smart contract and dApp-enabled blockchain that still holds an exceptional place in the blockchain space,” writes Nitish Srivastava at Blockchain Council. “Although numerous competitors have entered the dApp scene, ethereum still remains at number one to date. … Ethereum has a strong and active developer community focused on continually improving the underlying blockchain infrastructure.”
So with Ethereum having a special place in the crypto context, think about whether it can constitute its own unique type of play in your investment strategy.