Ethereum (ETH) Price Is Free Falling, Shedding 34% As Bears Wreak Havoc
Today’s Ethereum (ETH) News
That Ethereum as a project has been a success is true. However, the only impediment for Vitalik Buterin led smart contracting platform to shine in glory is scalability. Good news is, the problem is not limited to Ethereum only. Other public chains like Bitcoin for example is struggling to come up with fitting solution.
Amongst the many, the use of Lightning Network, an off-ramp high throughput and secure option is picking up but not with criticism. On their part, Ethereum is hard at work, racing against time to roll out Ethereum 2.0.
Ideally, once implemented in the last stage of Serenity, not only will Ethereum cement its position as a go-to platform for smart contracting usurping leading competitors as Tron and EOS with faster throughput but with a tinge of centralization but with other EIP activation and possible reduction in issuance, the native currency in ETH would be repriced higher benefiting investors.
Although the first stage of ETH 2.0 is set for activation in early Jan 2020, Vitalik has a new proposal. Strange as it is, he is zeroing in on Bitcoin Cash network. Citing average throughput of 53kbps against 8kbps transaction processing in Ethereum, he says integration will not only scale Ethereum before 2021 but there is a way, they can by-pass the high block time generation in Bitcoin Cash thanks to their use of Zero confirmation time made possible by Avalanche pre-consensus.
Even so, ideal and even surreal as it may seem, Vitalik view is seen as an admission to failure with some quarters criticizing is decision. Francis Pouliot for example said:
“The shitcoin ETH has hit a three-year low versus Bitcoin. The founder has all but declared the project a failure today by proposing a humiliating BCash integration to delay the (yet unsolved) scalability crisis.”
ETH/USD Price Analysis
1 ETH/USD =$3,556.8686 change ~ 2.47%
At the time of writing, ETH is in doldrums and free falling. Syncing with Bitcoin’s losses, ETH is down 34 percent against the USD and printing 11.6 percent in losses in 24 hours. Even so, this was largely expected given the spectacular expansion in Q2 2019.
Moving on and considering the fact that prices are also trading below the main support and sell trigger line of $230, every correction is technically a selling opportunity. In that case, the first target is $190 and should bears press lower, then the second bear target will be April 2019 lows of $150. Already, there are signs that bears are in a pole position.
Not only is this depreciation at the back of increasing trading volumes but with bear candlesticks banding along the lower Bollinger Band (BB), sell momentum is high.
On the flip side, assuming there is a recovery, then bulls will be back in contention once ETH prices rally above $240. Distinctively, the breakout bar driving ETH above $240 ought to be with high trading volumes exceeding 882k of May 16.
Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your due diligence.