- Ethereum has undergone a strong drop since the August highs of $490.
- The coin currently trades for $380, far below the aforementioned highs.
- Despite the strong correction, analysts are optimistic that the long-term trend remains bullish.
- One crypto-asset analyst noted that as long as Ethereum holds the $350 region, it could move towards $700 in the long term.
- The chart suggests that the prices in the vicinity of $350 are of macro importance.
- Namely, in the middle of 2018, the leading cryptocurrency reached those lows, then bounced.
- And in 2017, $350 acted as a launching point for the bull trend that brought it to $1,400.
Ethereum Must Hold Current Range to Remain Macro Bullish
If Ethereum holds prices around $350 as support on a macro time frame, Ethereum is set to explode higher towards $700 over time, analysts say.
One crypto-asset trader recently shared the chart below.
It shows that over the past two years, the $350 region has been pivotal for ETH. In 2017, it acted as a launchpad for the rally to $1,400. Also, in the middle of 2018, this region acted as a point at which Bitcoin underwent a dead cat bounce.
Chart of ETH's price action over the past few years with a Renko candle analysis by crypto trader Cold Blooded Shiller (ColdBloodShill on Twitter). Chart from TradingView.com
Ethereum Hash Rate Sets All-Time High
Supportive of ETH growth is the hash rate of the Ethereum network.
As reported by Bitcoinist previously, the hash rate of the Ethereum network recently hit an all-time high above 250 terrahashes per second. This is a reading slightly above the all-time highs seen in the middle of 2018, when the metric tapped 250 terrahashes, then declined dramatically as prices dropped.
Chart of ETH's hash rate since the start of Janaury 2017 from CoinMetrics, shared by CoinMetrics. Unit on the left is terrahashes per second.
Building off the growth in Ethereum’s security are on-chain scaling solutions, which benefit from the increase in hash rate. Leading developers in the space are announcing second-layer solutions such as testnets built on ZK Rollups and Optimistic Rollups.
Analysts are optimistic that these technologies will dramatically increase Ethereum’s utility, driving prices higher.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com As Long as Ethereum Holds $350 Range, It's Set to Double: Analyst
Source: Bitcoinist News