Ethereum prices are slowing down. At the back of last week’s eight percent gains, prices are ranging in lower time frames. Even though yesterday was bearish, we expect prices to pick up and sync in line with last week’s gains. However, for activation of long term bulls, prices must close above $300 or week ending Sep 9.
Latest Ethereum News
No doubt Ethereum is a market leader when it comes to smart contracting and dApp development. Thanks to its pioneer advantage, the platform is a go-to platform for developers and start-ups looking to raise funds. Their preference seems to be because the network is time-tested and secure. Besides, the Ethereum foundation has been on the forefront working on scalability proposals as plasma and network Shards.
Theoretically, these solutions, Vitalik Says, can scale the network enabling it to process billions of transactions per second usurping that of Tron. All things constant, Ethereum must work towards making this a possibility in days to come or else contend with never-ending jabs from Justin Sun, the founder of Tron. Tron is Ethereum’s rival but employs different consensus algorithm making it scalable, fast and its Tron Virtual Machine is compatible with that of Ethereum.
In other news, the largest brokerage firm in Brazil, Grupo XP plans on entering the crypto space. While there are no specific dates for exchange launch, the exchange XDEX shall list ETH. For expediency, it shall employ 40 crypto specialists. Overly this is a boost for ETH. Even if “Grupo XP” is obligated to launch the exchange, it comes at a time when regulators have a regulatory framework in place. The framework lists applicable tax laws for fund managers investing in Ether and similar cryptocurrencies.
Ethereum Price Analysis
Most notable, ETH prices are up eight percent in the last week but are still trending inside week ending Sep 9 bear candlestick. If anything, recent revivals-despite high volume backings-are but perfect opportunities for sellers to add to their positions. More so if this week fails to close above $250 or $300. From previous Ethereum trade plans, prices are technically on a down trend. Though on course, it will take a while before there are solid reversals closing above key resistance levels. In this case, $300 or week ending Sep 9 highs are important should there be trend reversal. Because of this, we recommend taking a neutral position going forward.
Like in the weekly chart, ETH bulls are facing resistance. However, since the market is rejuvenated, aggressive traders can load at spot prices as long as prices are trading inside Sep 21 high lows. The reason behind this projection is that Sep 21 did break above $230 triggering small position longs shortly after Sep 17 losses threatened to drive prices below $200.
But, this projection is valid only as long as Ethereum prices are trending inside a tight range between $230 and $250. Any dip below that can as well signal a trend back to $200 nullifying last week’s gains. Anyhow, considering our previous trade plan, we suggest patience for conservative traders until after there are gains above $300. Thereafter, traders can begin ramping up longs on dips as aforementioned before.
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.