With a rise of over 150% in ETH since the coronavirus inflicted crash in March, many are beginning to feel bullish over the ETH mid-term price.
And with data from Bitfinex indicating that more than 1.6 million long contracts are issued on ETH, it’s hard to argue with a the bullish sentiment.
Despite the optimism, however, several top analysts are expecting short-term bearish price action for ETH.
On-Chain Analysis Signals Weakness in ETH Armoury
According to Ceteris Paribus, the number of ETH held by exchanges is roughly 18 million, which is close to an all time high.
In his tweet analysis, Ceteris Paribus, went on to suggest that the trend was a bearish signal for ETH, who emphasized that it was a likely signal that ETH traders were about to sell.
This was backed up by another prominent analyst. Credible Crypto claimed that Ethereum had lost key level support that had held on four separate occasions before, and that he was getting out of his longs in case a bigger correction was coming.
Ethereum’s Fundamentals Could Bash Any Bearish Sentiment
But Ethereum’s fundamentals belie any negative sentiment, as mainstream adoption looks to be trickling in.
Social media platform Reddit recently announced it was introducing ‘community points’ that would be run on the Ethereum testnet, Rinkeby, before transitioning over to the mainnet.
This garnered a lot of excitement in the Ethereum space, and led angel investor Adam Cochran to claim that the new Reddit token would expose millions to Ethereum.
‘Today, Reddit introduced about 20M new users to cryptocurrency in a matter of seconds,’ he wrote in his Medium post.
Reddit’s community tokens will be earned in subreddits /r/Cryptocurrency and /r/FortniteBR but will not be traded on the crypocurrency markets.
It’s believed that the tokens will be used to tip other users, buy badges and awards, take part in polls, or buy a special membership to each subreddit.
There are 26.4 million Reddit monthly users in the US alone, and as the crypto assets role out each of these users will get access to their ERC20 tokens through an app that’s available on both iOS and Android.
It’s only a dip in the shallow end for Reddit, but it shows the social media giant’s crypto interest, and as the success of the token grows, no doubt Reddit will roll out tokens for all its subreddits.
This will automatically introduce hundreds of millions to the crypto space, and is super bullish for Ethereum, which should help the long-term price trend up.
As for the short-term, There is conclusive analysis pointing both ways, and either case sounds convincing. For me, ETH is not a trade but a hodl.
Author: Tommy Limpitlaw
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