From a first glance on the altcoin news today, it seems like everyone is bearish on Ethereum as well as its Ether (ETH) token except for one partner at Placeholder named Chris Burniske. As he noted earlier this week, Ethereum is in a bear market but it is also a great long-term investment.
In retrospect, 2014/15 was the best risk/reward period for investors to get BTC exposure.
— Chris Burniske (@cburniske) August 20, 2019
Burniske believes that the oft-cited narrative leading Ether losing its use case is nothing but a speculation. He said that this is not entirely accurate. Instead, he posits that Ether is going through its “first mainstream bear market, just as Bitcoin did in 2014 and 2015.” This is what many best cryptocurrency news sites featured.
Hindsight always provides one with clearer picture of the general trend. Despite the fact that Ethereum is in a bear market, Burniske pointed out that 2014 and 2015 was the optimal risk-reward period for investors who seeked Bitcoin exposure. While all of this may sound encouraging to some, the analyst said that his optimism is much against the grain of current investor consensus and the plethora of bearish signs exhibited on multiple time frames.
Meanwhile, Ethereum and Litecoin both turned bullish in September 2018 and foreshadowed what was to come from Bitcoin. At the time, BTC was locked at $6,500 and Ethereum’s bull run then came right in time with Bitcoin recording gains. At press time, the coming altcoin news show that Ethereum is in a bear market and that its bull run is over.
Some of the factors that could indicate a new run for ETH include the selling volume which is outpacing the buying volume on the weekly timeframe and the ETH/USD pair is fast approaching a weekly support at $170. Below this is a drop to $100 and then $80, both of which would be unappetising for investors.
It is clear that while Ethereum is in a bear market, traders are placing their long-term bets on Bitcoin (instead of Ether). In the past, however, Bitcoin consolidation after strong rallies also led to traders transitioning into altcoins. Now, it seems like these investors are choosing to take shelter in stablecoins instead the Bitcoin price going south.
All in all, the ETH supporters are not losing hope – and Chris Burniske is definitely one of them. Ether is teetering on the precipice of uncertainty with a bearish bias – but that may not be for long.
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