Recently the ETHUSD sold off until $900. However the etherium could be at his cheapest price MoM. Here is why.
1) Market Analysis
The smart-contract is one of the most important innovation in the crypto-world. The number of start-up using ETH contracts is increasing exponentially.
Jannuary and February upcoming ICOs are mostly using ETHUSD to fund their projects despite others crypto-currencies.
That should help the upcoming come back in the ETHUSD price.
2) Technical Analysis
The HoH is still in the zone as the HoH.
The is actually but the next reversal should come faster than a lot of here think.
The Bitcoin Futures curve is in contango with $10,500 for the March 2018 contract. ( BTCUSD Spot $10,250)
The correlation MoM between BTCUSD and ETHUSD is relatively fair at 65%.
We are reasonnably for Mar18.
4) Principal Component Analysis
The bookorder presents a lot of buying pression close to $900 that will be a hard resistance to break.
With a 1.7 buyer for 1 seller at this point the bears should resign and let the bulls come back for the end of the week.
Finally I think ETHUSD could come back above $1,150 this week easily and may be above the 1,250$.
Wait and see.
We close the position at $1,059.