Ethereum (ETH) is currently trading at around $292 after a significant drop in price from last week.
ETH was trading at around $334 last Wednesday, meaning it has dropped over 15% in one week, accompanying the overall market downtrend.
Most altcoins have experienced consolidation or stagnation over the last few days. However, it seems that as Bitcoin stabilises, more prominent altcoins such as Ethereum are pumping as investors shift profits from BTC to ETH.
Will Ethereum recover once Bitcoin starts dropping?
Let’s take a look at the chart.
Looking at the chart above, we can clearly see a couple of interesting things. Firstly, the 20-day EMA has crossed the 50-day EMA, which is a very bullish signal. Price is also trading well above the 200-day EMA – another bullish signal.
There is some resistance between the $300-$315 levels that is expected to break once ETH pushes forward, as these levels were acting as support last week until ETH went below $280, almost touching the 20-day EMA. At the moment, support can be found close to $290.
Volume also shows there’s a thin line separating Ethereum from where it currently sits and the $500 level. Assuming the market remains positive, I expect ETH to power past $400 in a few weeks once the market booms.
At the moment, the recent correction has seemingly finished, so I now expect ETH to rise again toward $400 and later $500. How long will it take? That I cannot say, but looking at the overall panorama, I would argue no longer than one to two weeks.
If Ethereum is to become Web 3.0, it must have a good number of developers working on the infrastructure. In the best case scenario, the altcoin should have a large number of developers working on its core protocol (Ethereum) in addition to a number of developers contributing code to Ethereum’s repositories. Fortunately, Ethereum gives us the best of both worlds as it is ahead of all cryptocurrencies in both categories.
Research of developer activity from January 2018 to February 2019 conducted by Electric Capital shows that Ethereum is king in terms of developer activity, with better results than Bitcoin. It has the largest developer team in the crypto space.
On top of infrastructure developments, Ethereum is also making huge changes that will affect both miners and investors. On February 28 2019, Ethereum finally implemented the Constantinople hard fork which featured several improvements and changes to the core protocol. The most controversial change was the proposed shift from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) model.
Constantinople introduces a proposed mining model change that not only reduces ETH supply in the market, but also makes the Ethereum network stronger. With a PoS implementation, we could see a greater incentive for ETH holders as well.
The protocol implementation that will bring Casper (Ethereum’s PoS consensus mechanism) to life is currently being developed by two research projects:
- Casper the Friendly Finality Gadget (FFG)
- Casper the Friendly GHOST: Correct-by-Construction (CBC)
The aim is to add a PoS system with the ability to shard, as in the ability to horizontally partition data within a database. More generally, the database is broken into little pieces called ‘shards’ that when aggregated together form the original database. In Ethereum’s case, the database is the main blockchain, and the shards are smaller blockchains (sidechains) connected to the main chain.
If Ethereum continues to develop sidechain solutions around its main network, there could be limitless ways to scale.
We should also remember Ethereum is currently the backbone of the DeFi movement (decentralised finance), which could help with future adoption.
Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum. Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy in to his proposal.
More Ethereum news and information
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