Like Bitcoin, Ethereum has surged recently, rising from $161 (May 1) to $256 (May 19). However, price analysts believe the gains are here to stay. For instance, Barry Silbert, CEO of Digital Currency Group (DCG) believes the technical indicators are supportive of price:
“Sentiment, the technicals look great. An 80 percent draw-down happened three or four times, and every time that’s happened [it hit] record highs. So as soon as you get the price going back up and animal instincts come back, [the market recovers].” He also adds that, “…the difference between this increase in price and the bubble in 2017 is the infrastructure is much different. You have custodians now. You have trading software, you have compliance software, and people are educated about the asset class, so this time is different.”
Eth Holders Have Reason to Remain Bullish
Barry still believes sellers have sway over the markets. For evidence, he cites what he views as an overextension pattern within the price charts. On May 17, sellers liquidated their positions in a big way (note the high-volume trading). Why? Because Ethereum prices continue to close above the Bollinger Bands (price bands based on price volatility), As a result, investors came to realize that they were dealing with an over-extension. The subsequent bear sentiment continued on May 18th as well. Expectations are the averse-risk traders will continue doing so at or above $190.
Nonetheless, prices will likely continue to remain stable. With the news that Samsung may introduce cryptocurrency functionality in their Galaxy phones, Ethereum holders have reason to remain bullish. Because Samsung’s low-cost Galaxy phones are ubiquitous, many investors believe this new option will generate far greater interest in Ethereum and other ERC-20 projects (especially those supported by Samsung’s Blockchain KeyStore).