Following ethereum’s price fall to $250 from a brief high of $420, many are wondering whether the market has turned with the bull giving way to the bear, at least temporarily.
That’s what traders are speculating on today, with sentiment seemingly overall bearish, not least because the below chart suggests there has been a lot of sell pressure since the $420 high.
But the question is whether there is any more sell pressure left, forming a longer term bear trend, or whether this was just a temporary sell-off by perhaps traders or investors taking profits combined with fake news shenanigans.
No one knows the answer with bulls probably thinking that nothing has changed in ethereum as there has been no significant event to justify a turn of sentiment. So it may all just be temporary, not least because price did rise very fast with a correction much needed.
Whether that correction will turn into a bear market without some catalyst remains to be seen as previously, when sentiment changed in a longer time-frame, there was some significant event to turn the market.
But it’s summer. After hibernating, the bear might want to come play while bulls wait for Devcon 3, the launch of new innovative projects, and other news, perhaps while keeping the bears at bay in the meantime.
So we’ll see how the bull bear battle develops in the coming days and weeks, with no one quite able to predict the price in the short term. Nor can anyone say, except for time itself, whether the medium term trend will change, but hopefully the long term trend remains very much up.