A Profitable Bullish Ethereum Run is Still Happening
Ethereum Price Analysis - Bullish bias still on.
Ethereum (ETH) now has a $29 billion market capitalization, with only bitcoin ahead of it with
$102 billion. Ethereum is also currently trading $500,000 a day across all exchanges, a figure
which is behind only Bitcoin and Bitcoin Cash.
The network is still being affected by the Byzantium hard fork.
The network is still being affected by the Byzantium hard fork. Miners were gifted with a
difficulty adjustment but they also lost some of the former block rewards, from 5ETH to 3ETH.
These adjustments were necessary so that the inflationary curve of Ethereum can be fought. It
will also prepare for a network that uses pure PoS in the future.
The instant decrease in difficulty, which leaves the hash rate either unchanged or a bit higher,
means that block times have been reduced drastically, down to roughly 14 seconds. This is good
because a decreased confirmation time per block allows for increased total transactions per
day.
The network is now well placed to handle the large ICOs such as Filecoin and Tezos.
The network is now well placed to handle the large ICOs such as Filecoin and Tezos.
Due to the faster block times, the block size has also reduced significantly, with the fees also
going down to about $0.15 per transaction on average. Ethereum has an advantage over bitcoin
in that it doesnât have a maximum block size, but instead a dynamic transaction fee, called Gas.
The Gas increases the more the network demands.
Casper, which will allow the shift from PoW to PoS, may be completed and introduced in the
next hard fork, Constantinople. Two versions are being developed at the moment: Buterinâs
Friendly Finality Gadget (FFG) and Zamfirâs Correct By Construction (CBC). In terms of definition,
FFG is termed as a partial consensus mechanism inspired by a combination of existing PoS
algorithm research and Byzantine fault tolerance consensus theory. CBC, on the other hand,
develops an ideal adversary which decide on a value given a view only when they find that an
estimate of that value is safe against the ideal adversary for the given view in Casper without
side effects. In simple terms, FFG compels the measured switch to PoS while CBC protects the PoS system
via consensus.
Earlier this week, OKEx made an announcement that they will be rolling out a new ETH futures
product.
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Earlier this week, OKEx made an announcement that they will be rolling out a new ETH futures
product. This product will be similar to their already popular BTC futures product. They also
have LTC futures product but it has been ravaged by liquidity issues and subsequent margin
calls on both sides of the book with 20x leverage. Even though BitMex also offers an ETH
futures product, they have similar problems with the LTC futures product.
Ethereum Technical Analysis
The price is still dominated by a large ascending triangle chart pattern, which holds a bullish
bias, with a 1.618 fib extension and measured move of US$650 and US$790 respectively. The
entry point that is safest is above $420 or new ATH. A volume spike should confirm the pattern
break. At the beginning of bitcoin bull run from late 2015 into early 2016, this triangle
consolidation pattern was also witnessed.
The pair of ETH/BTC keeps decreasing, BTC is rising while ETH is consolidating for that. The
initial bearish signal occurred on the 9 th of this month, and it was a clean break of the daily
200EMA. The death cross that happened a few days later solidified the bearish momentum.
Last time that happened was about a year ago, and it started several days of bearish
momentum.
At this stage, it can be said that Ethereum continues to make adjustments to the protocol for
the final version a few years from now. Digital markets worldwide are getting used to the ETH
derivatives and Ethereum related products which will continue to provide exposure to new
currencies.
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