$ETH: Opinion about the current chaos in the market

ETH fell over 20% in the last 60 hours and a lot of margin traders are in panic due to its fall.

There is only one big reason why Bitcoin/Ethereum and other cryptos are falling..

"Ben Bernanke"

Although the title talks only about Ethereum, the bias still applies for bitcoin and other major crypto currencies.

Who is he? Why do his words matter?

Ben Bernanke is the ex chairman of the Federal Reserve (Central bank of the United States) and is infamous for his quantitative easing policies during his term. As chairman, his job was to maintain balance between GDP and inflation and maintain price stability through monetary policies and interest rates.

Whenever the (in this case, ex) chairman of federal reserve speaks, the market listens!

Banks, Hedge funds,stock brokers, forex brokers, retail traders, companies and all other trading entities just sit tight and listen to the chairman's speech.

Securities, assets, and currencies worth billions of dollars are bought and sold in fractions of a seconds on the words of central bank leaders. Even when Ben Bernanke is an ex chairman, his words and opinions still have the power to move the markets as a lot of entities hold big trust in his words.

What did he say?

“Bitcoin is an attempt to replace fiat currency and evade regulation and government intervention. I don’t think that’s going to be a success.”

Ben Bernanke doesn't believe that bitcoin or any crypto currencies can be successful in the long term because governments and central banks would work together to make sure any alternate currencies won't replace the mainstream currencies.

He also showed his fondness for the blockchain.

"The Fed, the Bank of England, and Japan are very supportive of these technologies because they’ll improve payment systems."

He supports the blockchain technology but not the crypto coins. His words have caused panic among big traders and banks to dump their stake of crypto currencies as his opinions still matters and hes still seen as an authority when it comes to economies.

What does this means to you?

"OPPORTUNITY"

He is probably right that governments and central banks will try their best to ban crypto currencies, but can they really kill it?

How will they stop crypto currencies?

Is a ban even enforceable?

HE IS WRONG. Crypto currencies are the future.

This is not the first time central bank leaders have said something against crypto currencies. We have heard these warnings from all the central banks around the world. Unless they completely shut down internet access in all countries, this is simply not possible.

On other hand, his words have caused panic among weak traders, making the price cheaper for smart investors.

This makes it a perfect time to buy low and secure your lamborghini for future.

Opinion: Ethereum is below its fair price.

Now a fair price means something different for everyone. Different person, different terms, different goals, different technology and different analysis.

As per my analysis, I feel Ethereum is extremely under valued for short term, medium term as well as long term.

Below is how I define my terms:

Long Term: Year or more
Medium term: Few months
Short term : Few days or weeks

Here are the fair prices for ETH according to their terms:

Long term: $400

Medium Term: $350

Short Term: $300

Intraday: (ノಠ益ಠ)ノ彡┻━┻ (As you have no money left by now!)

If you have bought ethereum below the fair price parallel to your term, you should do fine.

It seems like there is heavy volume support at around $290. It is highly unlikely that price will go below $280, but you never know!

RSI(14) is currently below level 30 on 2 hour timeframe. This is a good short term buy, if not long term or medium term. Good exit for short term would be $315.