Ethereum is making waves in the market as its price has just crossed and remained above the 200-day EMA. This is quite an accomplishment after being in a constant bear phase for quite some time.
During the early days of April, Ethereum’s price went through the roof before a swift correction. Since then, ETH has been growing stronger every day alongside Bitcoin, and is now sitting above $180. If the 20-day EMA crosses the 50-day EMA, that could also mean Ethereum is really on a positive trend and investors should look into consolidating positions. The next resistance price for ETH should be around $200.
Ethereum has continued to look strong overnight, breaking the $180 price level this morning.
Daily trade volume is more than $10 billion, which is double the amount we saw last week. Ethereum’s market cap stands at around $17.6 billion, making it the second largest cryptocurrency in terms of market cap.
At the moment, Ethereum is moving parallel to the market, and unless there is a sudden decline in volume, I don’t see a reason for this bullish momentum to stop.
In theory, the development of Ethereum 2.0 should increase Ether’s reservation demand as the network’s overall utility improves. The transition to Proof-of-Stake should greatly help in this regard because it gives network participants more incentive to hold Ether. This will solve the ICO cash-out problem that plagued the platform last year. As the quality of token offerings improve, we are also less likely to see cash-grab ICOs and white paper projects that were rampant in 2017.
Regarding “economic abstraction”, a term that describes gas payments in non-ETH assets that could render ETH useless eventually, Vitalik Buterin says several fixes are being considered. The community is considering the ‘modified fee market’ and ‘storage maintenance fees’ proposals, which would basically make gas payments in ETH mandatory.
From a purely price perspective, Ethereum remains a highly attractive investment relative to its peak. An investment in ETH is essentially an investment in the future of its development community and the likelihood that it will dominate smart contract and dApp development. Presently, Ethereum has the largest community of infrastructure developers contributing to the protocol and its repositories.
If Ethereum continues to develop sidechain solutions around its main network, there could be limitless ways to scale.
Ethereum was launched by Vitalik Buterin on 30th July 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a white paper 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.