Ethereum Price Recovers Adding 5.3%, Bulls Will Be Clear After ETH Hits $300
Today’s Ethereum (ETH) News
That there is activity in Ethereum platform is true. It’s what we can gauge from user activity, the amount of dApps launching on the platform and from the fact that despite the low TPS, Ethereum has more developers working on its source code than competitors. If anything, that’s a huge plus. But there is something remarkably different from this price expansion.
After bottoming up from $75 in mid-Dec 2018, Ethereum (ETH) prices are on an uptrend, more than tripling and amid that rally is the platform wait time remain as it is, roughly 12 seconds for transaction confirmation. That’s not all. Network usage is on a roll. On May 29th, Ethereum processed more than 49 billion units of gas to node operators setting a new record.
Gas, as it is, is the measure showing how much one would pay to effect a transaction or execute a smart contract within the Ethereum ecosystem. It is denominated in ETH. Therefore, in supply and demand dynamics, the rise in gas processing marks increasing demand and as such, it is expected that prices would rise in tandem. That’s what is happening and ahead of Istanbul updates, we expect prices to edge higher as implementation of Serenity waits.
Meanwhile, an Ernst & Young’s report reveals that up-to 83 percent of all dApps launched from Ethereum are not being used productively. Paul Brody, Global Innovation Leader of EY revealed that creators of crypto projects are quickly losing track. He goes on to say that for blockchain to be a real disruptor then they should go back to the drawing board and design their projects so as to bring solutions to pressing needs.
ETH/USD Price Analysis
1 ETH/USD =$3,460.1029 change ~ -1.96%
At the time of writing, Ethereum (ETH) is up 5.3 percent in the last day, adding 8.1 percent week-to-date. As a result of this upswing, losses of May 30th have been shaken off and bulls are back in track. Even if conservative traders need to see a strong signal pushing prices above $275 and $300 before committing, it is clear that the underlying momentum is strong and the uptrend is firm.
However, this will only hold as long as prices are maintained above $230 or the 50 percent Fibonacci retracement level of May 2019 trade range. Besides, notice that despite buyers taking control, prices are largely in consolidation within a $50 range. This may be a temporary pause before a larger leg up propelling prices to $300 and $400 as laid out in previous price analysis.
For now, every dip should be a buying opportunity for aggressive traders aiming to clip the market and take profit at $300. All the same, traders should note that any drop below the middle BB and later $230 would signal exhaustion and a meltdown to the $170-$190 support range will be on the cards.
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.