Ethereum (ETH) is well on track to proceed with its ongoing rally despite concerns over Plasma. Ethereum (ETH) investors took to Twitter to express their dismay over how Ethereum (ETH) “overpromises and under delivers” but that did not stop them from buying the dips. In fact, a lot of such investors seem to have made their peace with Snarks and believe that there is still enough juice for a rally from this point forward. There is no doubt that Ethereum (ETH) often overpromises and under delivers whereas Ethereum Classic (ETC) often under promises and over delivers. However, in a market where memory and sentiments last a duration of just a few hours, this does not seem to matter much. It will matter as the market matures but we are still in very early days.
The weekly chart above for ETH/USD shows that Ethereum (ETH) has been following a particular pattern over and over again. That pattern involves previous support turning into next resistance. If we look at the first trend line on the above char that extends from way before 2016 and all the way to April 2017, we can see that it was broken around October 2016. Later on, that trend line serves as the next resistance and is tested in April 2017. The price is initially rejected by this resistance but soon afterwards, it pierces through this resistance and rises to a new all time high. This is not the only time this happens. If we look at the price between January 2017 and November 2018, we can see that the price broke below the trend line around August 2018.
If history is to repeat itself, we should see the price running back into the broken support, now turned into resistance. This is expected to happen around early 2019. Initially, the price is expected to be rejected by this resistance, but will eventually have to break above it in order to reach a new all time high. If ETH/USD follows this trajectory, it is expected to reach an all time high around mid 2019. If you have been following this market for long, you would have noticed that a lot of things are already changing in this market. A few years back, we were at the experimental stage. I remember watching Ethereum (ETH) around $10 and I’d always wonder if this technology may eventually succeed. I ended up buying my first ETH around $15.
Back then, the future of Ethereum (ETH) was not very bright. It was just a community of some tech geeks trying to experiment with a new technology. The number of people who actually understood the concept and what the team was trying to build was very small. Still, the large majority of people do not really understand the tech behind Ethereum (ETH). They are more interested in it as an investment rather than as a technology. However, Ethereum (ETH) today is far bigger and better than it was a few years back. The adoption it has seen is just a drop in a bucket compared to where it can go from here.