Ethereum/ether is a native coin of the ethereum network whose transaction can take place from one peer to another thus making it to be a decentralized asset. It was able to be transformed from proof of work to proof of stake consensus. The first smart contract address must pay a gas fee in order for the transaction to be initiated to the second smart contract address. The transaction fee will be shared by the staking pool running the network which will then be distributed to the stakers based on their staking amount. Just like in bitcoin, ethereum is also considered to be an established cryptocurrency thus cryptocurrency traders can easily trade it both downwards in an upwards direction and still be able to profit easily from the market. We can therefore further explain how the traders behaviour affects the ethereum market as below;
Traders behaviour
Since ethereum is well tradeable as compared to other cryptocurrencies, we can therefore be able to analyze its weekly price analysis according to the way traders enter the market. Therefore we can say that as more traders are buying a given amount of ethereum, the market for ethereum will move with few traders who will be selling. This will make it to move in a downward direction so that the market can profit with few traders selling a given amount of ethereum. On the other hand, if more sellers are selling their given amount of ethereum, the market for ethereum will move with few traders buying a given amount of ethereum. This will make it to move in an upward market direction so that the market can profit with few traders buying a given amount of ethereum. In one week time,there is possibility of ethereum to start a bullish movement. This can further be explained as follows;
1. Bearish ethereum market based on traders behaviour
In a bearish market, the price of ethereum will be moving in a downwards direction. As this week was starting(24th, February 2020), the ethereum market has been moving in a downwards market direction. This may continue until the beginning of next week. This may be as a result of more traders buying a given amount of ethereum with their USDT balance compared to few sellers selling their previously bought ethereum. This makes the ethereum market to continue moving downwards with few sellers so that the market can profit from many buyers purchasing a given amount of ethereum with their USDT balance. If this continues, then there is possibility of the ethereum to go as low as $220 in one week from now after which it will start moving upwards. As an ethereum trader, if you had initially sold your previously bought ethereum, then this is the right time for you to purchase a given amount of ethereum coin. You can either purchase at above $220 or you can wait and purchase it when it has gone to around $210 since the upward trend will start starting next week and the price can again go above $220. Here is a market chart for ethereum.
The above is the ethereum market in terms of USDT. Two points are being indicated. There is point A and point B. Before point A, the ethereum market can be seen to have been moving in a downwards market direction all the way to $220. This has been happening since the beginning of Monday this week the 24th of February. This downwards trend has been due to more number of ethereum traders buying it as compared to few traders selling it. Because of this, the price continues to move downwards thus profiting from those many traders buying it. The number of traders selling ethereum then exceeds the number of traders selling it thus causing it to reverse and start moving upwards with few traders buying it all the way to point A at $230. . This makes the ethereum market to profit from those many traders selling it. At point A, the number of buyers again exceeds the number of sellers thus causing the market to reverse again and start moving donwards all the way to below $220. If more number of buyers than sellers will continue to purchase a given amount of ethereum coin, then the market will further continues to move downwards. In one week time from now most probably next week, the price can go as low as $210. As an ethereum trader, this is the right time for you to purchase a given amount of ethereum. You can either purchase at current market price of $220 or you can wait and purchase it when the price will have gone below 220 at around $210 since the market will start an upward trend and can go above $220. Make sure to place your buy order with a risk management if you want to profit from this market.
Summary
On Monday, 24th of 2020, the ethereum price was trading at around $272. The market then started to drop downwards all the way to around $220 on Wednesday and Thursday respectively the same week. This decrease in price has been as a result of the number of buyers exceeding the number of sellers thus causing the ethereum market to continue moving downwards with few sellers so that the market can profit from many buyers. Therefore,we can say that the buyers and sellers are determinant factors in the direction of the market thus the market normally moves in the direction where the traders are few so that it profit from those many traders moving in opposite direction.
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