Ethereum Price Analysis: ETH Plunges, Primers For A Correction Back to $170 Possible
Today’s Ethereum (ETH) News
Here’s a thing or two about decentralized applications, or dApps: They are an important creation in the crypto and smart contracting space. Similar to centralized application stores run by Google or Apple for example, there is an element of creativity and flexibility for coders and other participants.
However, the only edge is that these applications ride on the pure power of blockchain. That means not only are they immune to geopolitics and therefore cannot be banned, but are transparent and allows utility. As such, through these dApps, they are far more than speculators but can be used to access services and more.
Perhaps that is the reason why the US SEC is flexible, recognizing that sector is yet to develop strong legs and evolving and therefore will issue no-action letters to projects that can demonstrate use case even if they are the technical team is yet to achieve all what they had laid out in their road map.
If anything, that’s pretty bullish and would no doubt spur innovation, a distinctive feature in the blockchain and crypto space. Thus far, however, and according to reports from Ernst & Young, it appears as if there is development within the Ethereum ecosystem as more developers prepare for Ethereum 2.0.
Unfortunately, though, most of these dApps, up-to 83 percent are not being used productively. Paul Broady, the Head of Innovation of the Audit firm in a speech during the FinTech Forum organized by the SEC’s Strategic Hub for Innovation and Financial Technology, chastised projects creators urging them to “go back to first principles” and create apps that will solve problems.
ETH/USD Price Analysis
1 ETH/USD =$2,335.3658 change ~ -4.10%
There is a general market slump. Even though the erosion is not as deep in Ethereum (ETH), the coin is nonetheless registering losses. Down 8.1 percent in the last 24 hours at the time of press, ETH is nonetheless, technically bullish.
A glance at the daily chart reveal that although prices are under pressure, ETH is ranging against the USD with firm support at $230. The level is the 50 percent Fibonacci retracement level of May trade range.
As mentioned in previous ETH/USD trade plans, it is imperative that prices find support in this level since ETH is trading within a bullish breakout pattern after clearing $170-$190 resistance or April high. Therefore, in light of the above, there is opportunity for risk-off, aggressive traders to capitalize on this lull, buy the dips and aim for $300.
On the other hand, conservative traders can wait for confirmation and that means a high-volume close above May high confirming buyers of early April and May. Even so, buyers should thread cautiously aware that any liquidation below $230 shall confirm the three-bar bear reversal pattern of May 30th from where ETH prices range in allowing sellers to temporarily take charge from an effort versus result point of view. If there is a flash dump below $230, odds are prices will drop back to $170-$190 in a retest.
All of Today's Ethereum (ETH) Price Analysis, Chart Forecasts and Industry News
All Charts Courtesy of Trading View—Coinbase
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.