Ethereum’s Rally Means Nothing…

EHTEREUM’S RALLY MEANS NOTHING… FOR NOW.  It wasn’t too long ago that Ethereum (ETH) was taking share from Bitcoin (BTC).   Even as BTC gained 50% from April to May, ETH outshined it, rallying over 120%.  It was trading near the 800 level, and bulls gladly proclaimed that 1,000 was imminent.

That didn’t happen.  BTC promptly fell 40% to its low in early June.  ETH got absolutely hammered. It lost nearly 80%, shattering its own 2018 support zone (near 360) in early August.  That led a new low of 167 earlier this week.

So, what do we with this bounce?   From that low point, ETH popped 34% the last few days.  That’s huge and reminiscent of 2017.

But that’s where the similarities between then and now end. ETH remains deeply entrenched in a downtrend.  Thus, rallies should be treated suspect until we see a material change.

Said change isn’t something we’ll see happen immediately. It will be a process of repairing the damage.  As of now, there aren’t many signs that this process has begun.