Ethereum Recovers 15% Within Minutes, is it Demonstrating Oversold Conditions?

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On December 8, within 15 minutes, the Ethereum price increased
by more than 15 percent against the US dollar.
Several traders expected Ethereum (ETH) to experience a short-
term corrective rally after it dropped to a yearly low at around $82.

A Local Bottom
Prior to its price drop, a prominent technical analyst with an
online alias “The Crypto Dog” said that Ethereum demonstrated a
sign of a bottom and it could recover to a resistance level.
“ETH double bottomed on the 30 minute chart while BTC made a
new low. First sign of a bottom on the ratio,” the analyst said.

Following the recovery, the analyst said that an increase in price
to $100 is a possibility, given the rise in the daily volume of the
digital asset.
“It smashed right through that resistance. At the next
resistance now and it’s going to take a lot more
firepower to break .028. Very impressive display,
awesome volume. I would love to see this test $100-102
today.”

However, one trader stated that a further drop to the $85 support
level and eventually to $50 still remains a possibility if the asset
fails to sustain its volume.
“I’ve seen people targeting insane low targets for ETH but
before going to $4, you do realize that there are supports
to be broken, right? $85 still valid as a support and $50
is another option lower. It’s like December 2017 euphoria
but reverse right now.”
Currently, it is difficult to forecast the price trend of ETH because it
has consistently been one of the most volatile cryptocurrencies in
the global market alongside Bitcoin Cash (BCH) and ERC20
tokens.

But, one positive element in the trend of Ethereum is that
throughout the past several weeks, Ethereum has been able to
maintain a relatively high daily volume at around $2 billion. As of
December, the volume of ETH remains larger than that of Bitcoin
Cash, Stellar, Ripple, and Bitcoin SV combined.

Given that ETH has dropped 93 percent from its all-time high,
more than any top five cryptocurrency, if the trend of the crypto
market reverses, oversold conditions of ETH could allow the asset
to rebound with higher intensity.

Positive Developments in Ethereum Ecosystem
Su Zhu, the CEO at Three Arrows Capital, a forex hedge fund, said
that the Coinbase team including its CEO Brian Armstrong, have
been avid supporters of Ethereum for a long period and that the
integration of new ERC20 assets, most of which are based on the
Ethereum protocol, is a positive development for the Ethereum
community.

“Don’t see a problem with Coinbase listing small market cap
ERC20 tokens,” said Zhu. “They own a wallet, DEX, and broker-
dealer already and are huge backers of the Ethereum ecosystem. I
may not agree with their opinions but I respect their commitment
to a vision. The market will decide if they are right or wrong.”

ConsenSys, the largest blockchain software firm in the market, has
also vowed to begin working on products that can be actively
utilized by users in the market to increase the adoption of
Ethereum.

Source : https://www.ccn.com