Ethereum (ETH) is currently trading at around $230 after a massive 20% price increase over the last 24 hours.
Most cryptocurrencies are now experiencing incredible gains after recovering and following Bitcoin’s upwards path. Volumes are also coming back in full force and ETH is now seeing close to $13 billion daily trade volume.
Let’s take a look at the charts.
Looking at the chart above, we can clearly see a couple of new interesting features. Firstly, the 20-day EMA has crossed the 50-day EMA, which is a very bullish signal. Price is now also trading well above the 200-day EMA.
Moreover, there could now be new support forming around $185, just above the 200-day EMA. The newly achieved yearly highs have been brought about due to a massive boost in Bitcoin last week.
Good news has flooded the space over the last week, with the Consensus conference currently taking place in NYC and some other bullish news like Microsoft’s latest identity developments and Bakkt finally announcing it’s launching full Bitcoin-settled futures this year.
So not only is the technical analysis bullish, but the fundamentals are as well. I’m personally expecting price to keep making gains for a few days before correcting to around the 200-day EMA price level.
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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As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.