Ethereum Price Analysis: ETH Risk Collapsing, Breaks Below Jan 2019 Lows

initial coin offerings are hosted on the Ethereum platform

Latest Ethereum [ETH] News

In a public blockchain as Ethereum, challenges are inevitable and even if consensus may not be struck from time to time, upgrading proposals often get the lee way for eventual implementation. We have seen that happen from time to time. EIP 1234 for example, even though contentious and initially resisted by miners will bring about a mini ice age in readiness for Proof of Stake.

Aside the slash, profits will slow thanks to low rewards in a biting bear market. Others as EIP 1283 benefit smart contracting and proposes state channels but was bug laden the last time Constantinople was ready to roll out.

Constantinople aside and the miner community is back to the round table. This time discussing about the ramification of programmatic proof of Work that will increase efficiency of Nvidia and AMD produced chipsets. The objective of ProgPow, they say, is to somewhat level the field, preventing possible centralization due Ethash supporting ASICs.

These are the very effective ASICs that not only secure the network against 51 percent attacks but are in the hands of miners. It is the possible material loss and the realization that ProgPow will benefit Chipset manufacturers more while not introducing ASIC resistance in the network that is bothering miners.

Ethereum – ETH/USD Price Analysis

ethereum eth price 06/02/2019If anything, ETH/USD price action is tepid. ETH is still the third most valuable coin trading at around $104 a piece with a market cap of $$10,816 million at the time of writing. Down 1.3 percent from last week’s close, ETH is literally struggling. This means despite our optimism, bulls will not only be in control only when prices are trending above $120 but when a full high volume bull bar close above $135—our immediate resistance level.

That price tag, we reckon, will catalyze risk-averse traders into the trade helping propel ETH back to $170 and even $250. As it is, this is a tall order but there are hints. First, notice that there’s a reprieve as ETH bounces off between 61.8 percent and 78.6 percent Fibonacci retracement levels. The zone is where prices traditionally bounce off and if recovery rules apply, then it is likely that ETH would expand above $120, $135 and eventually breach $170.

Other than that, ETH buyers are rejecting lower lows and if Jan 29-30 double bar bull reversal pattern is confirmed, odds are our trading conditions will be met and ETH prices will recover to the reprieve of investors. But, considering today’s sell off, we shall take a neutral stand aware that any dip below $100 could lead to panic sells below $70—Dec 2018 lows.

All Charts Courtesy of TradingView — BitFinex

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.