Ethereum (ETH) is currently trading at around $256 after a 5% price increase over the last 24 hours.
Most cryptocurrencies are now experiencing moderate gains after recovering from a flash sell-off last week, and Ethereum is now following Bitcoin’s upwards path. Volumes are also coming back in full force, and ETH is now seeing close to $12 billion daily trade volume.
Let’s take a look at the charts.
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.
While there is some resistance between the $250-$255 levels, when we look at the underlying volume, we see it is quickly becoming support instead of resistance as price hovers above it. Moreover, there could now be new support forming around $188, just above the 200-day EMA.
Good news has flooded the space over the last few weeks, as some giant players revealed some interesting moves in the blockchain space during Consensus 2019, the biggest crypto-conference held in NYC. We’ve also had some bullish news regarding Microsoft’s latest identity developments and Bakkt finally announcing it’s launching full Bitcoin-settled futures this year.
Last week I said I was expecting a major correction towards the 200-day EMA, which didn’t happen. As such, I’m now even more bullish as massive support is found around $230.
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
If you want to find out more information about Ethereum or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started: