Ethereum Price Analysis: ETH Sliding Among EIP-2025 Controversy Within Community
Behind every proof-of-work public chain is the pressing need to scale, and accommodate new users. And made worse by bright projections and the prospect of blockchain becoming the underpinning layer of the future token economy, developers are under pressure. The pressure is even higher in Ethereum.
As it is, the largest smart contracting and dApp launching platform is both attractive and satisfactorily decentralized. It successfully enhanced Bitcoin’s limitations and with it they opened up doors for asset tokenization and well, a new model of crowd funding.
Popular as they are, they are mired by regulatory challenges and assuming the situation in the future evolve, drawing interest like those of Q4 2017, then Vitalik and team will be tasked to strike a perfect balance between securing the network and scaling it within acceptable time frames. It is this cyclic nature of network improvement that is apparently stretching Vitalik.
Activation of Serenity is set for 2021 or thereabout but evidently, the Ethereum development team is massively behind schedule. To that end, they are proposing quick fixes. One of the most audacious of them all aside from ZK-STARKs and Casper is the suggestion of Bitcoin Cash.
Vitalik argues that Roger Ver’s network, thanks to a series of hard forks, is inherently scalable and cheaper compared to Bitcoin. True as it is, opposition for such a move is equally strong.
But, debate of Ethereum’s bad decision making could be played out in public assuming EIP-2025, a network improvement suggestion advocating for the inclusion of additional 0.0055 ETH per block for 18 months as contribution for a $60 million developer funds. Already, the possibility is drawing condemnation from within the Ethereum community.
ETH/USD Price Analysis
1 ETH/USD =$2,338.7518 change ~ 0.86%
- Chart courtesy of Trading View—Coinbase
At the time of writing, ETH is under pressure and the second most valuable digital asset is trading at $215, 6.2 percent lower than it was last week. If anything, this is the reflection of price action and the oversupply of the last few weeks.
Note that ETH posting losses is nothing more than a need correction following stellar gains in the tail end of Q2 2019. Reinforcing this view are fundamental factors and candlestick arrangement visible from the chart.
First, ETH is trading within a bear breakout pattern after crashing below the main support trend line and $230 in mid-July 2017. Secondly, the failure of buyers to reverse losses of July 14 through to 16 through their consolidation over the weekend, mean bears, from an effort versus result point of view, are in command.
As such, unless there is a high volume close above $230, every high is technically a selling opportunity for savvy traders. In that case, the best approach for aggressive traders is to unload ETH with fitting stop limit at around $250. Bear target will be at $130 and $100. On the flip side, high volume price rallies above $230 nullify this trade plan.
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.