Is It Right Time to Buy ETH Amid Advancement of Ethereum Ropsten?
Ethereum is one of the largest cryptocurrencies in the world by market cap, which has seen an outflow in the last few months, but now ETH has been in the news because of many reasons.
In the Ethereum 2.0 upgrade, it will switch from proof-of-work consensus to proof-of-stake consensus, which helps to save energy and enhance the security of this blockchain protocol. It has diversified use cases, which is why many retail investors want to know the long-term view of this cryptocurrency. With Ethereum’s Ropsten Merge underway, the chart looks bearish for the long term, while the exchange reserve rate shows we are still in a bullish zone.
At the time of writing this post, the ETH price trades around $1800. Indeed $1600 is a strong support level for this coin, and it will not break that level this year as per our Ethereum price prediction.
On the weekly chart, MACD is forming red histograms with a bearish sign, and RSI is in the oversold zone. You can find nine red candlesticks in the lower half of the Bollinger Band, and among them, the last two candlesticks are indecisive. The sentiment is different if you check the exchange service rate index and Ethereum market mood index.
The retail investors are fearful of the current situation, and they do not want to invest more in Ethereum, so the score is 29. However, it does not mean the market is bearish. When retail investors are fearful, the big investors are playing their part to change the sentiment in the market.
They feel it is the right time to invest more in ETH based on the future prospects of this cryptocurrency. During this time, the stake may switch from the retail investors to the big investors. That is why big investors make big money, and retail investors usually get stuck at a higher level. This logic is also supported by the exchange reserve metric.
On this chart, you can find the black line price USD is increasing, and the blue line exchange reserve is decreasing. It suggests the coins are in scarcity in the market, and the exchange does not have enough supply to distribute coins to the sellers. It is an early sign that the price will increase in the near future.
The decrease in the value of the exchange reserve suggests the low selling pressure in the market, and it means the price of Ethereum will not fall further. Besides that, $1600 will work as a strong support level on the long-term chart.
All these advanced technical indicators suggest the price is still in a bullish zone though the long-term chart seems to be in a consolidation phase. The sentiment is fearful, and coins are getting scarcer. That means it is the time of a reversal in the market for the long term.
Many investors treat Ethereum as an asset. Technically it will face resistance around the $3000 and $3500 level, but if it crosses these levels, it will be bullish for the long term and make a new all-time high. It is a good opportunity for retail investors to increase their portfolios when the market is fearful.
That means the chart can be in a consolidation phase for the short term within a range between $1600 and $3000, but it is still bullish for the long term. If you want to invest for the next ten years, then it is the best time to accumulate more ETH coins in your portfolio. If ETHUSD changes the momentum, then you may not get this price level in the next few years.
Please read the fundamentals of Ethereum before investing. $1700 can be a good price to buy for the long term, and you have to buy it in every dip.
