- Altcoins are gaining recovery traction in comparison to Bitcoin which has been lethargic below $3,900.
- ETH/USD upside breakout may remain limited; we can expect the price to trade sideways above $130.
ETH/USD is moving higher 1.1% on the day. The entire making is making subtle upside movements. It seems that altcoins are gaining recovery traction in comparison to Bitcoin which has been lethargic below $3,900. Apart from Ethereum, other altcoins that are reacting with bullish movements are XRP, Bitcoin Cash, Litecoin, EOS, and Ethereum Classic.
Ethereum is currently trading at $132.32. It has corrected higher from the main support at $130. The current bullish momentum is battling to overcome the initial hurdle highlighted by both the 50 SMA and the 100 SMA 4-hour.
Although Ethereum is one of the few cryptocurrencies that are bullish on Friday, its retracement to $140 will depend on whether it can pull above $135 and sustain more growth. Meanwhile, the RSI 4-hour chart is motionless at 54. This shows that ETH/USD upside breakout may remain limited; we can expect the price to trade sideways above $130.
Similarly, the MACD is slightly in the negative region and is emphasizing that the bears are still present. As far as support levels are concerned, the demand zone between $120 and $130 will continue acting as the key support while the primary support rests at $100.
Ethereum Price Analysis – ETH Continues To Consolidate Around $250
Ethereum ETH, 0.05% has seen 6% price fall over the past 7 days of trading, bringing the current trading price down to around $250 at the time of writing. Despite the recent price declines, Ethereum has experienced a 38% price increase over the past 30 days with a further 63% price increase over the past 90 days.
Ethereum has largely been dragged down recently due to the retracement displayed by Bitcoin BTC, 2.08%. Against Bitcoin, Etherem is still holding strong above the 0.031 BTC level.
The cryptocurrency is currently ranked in 2nd position as it presently holds a $25.85 billion market cap valuation.
Ethereum price analysis
What has been going on?
Taking a look a the daily Ethereum chart above, we can see that ETH has been trading within a short period of consoldiation since reaching the resistance around the $270 level. Price action is currently trading at the $250 level with strong support beneath at the $228 level.
Ethereum short term price prediction: Neutral
In the short term, Ethereum remains neutral until a break either above $271 or beneath $228. Above $271, the market will turn bullish in the short term, beneath $228, the market would turn bearish.
If the sellers group up and push the market beneath $250, we can expect immediate strong support beneath to be located at the short term .382 Fibonacci Retracement level (drawn in green) priced at $228. Beneath this, further support is expected at $220 and $213. The support at $213 is provided by the short term .5 Fibonacci Retracement level.
If the selling continues further beneath the $200 level, lower support is then to be expected at $193, $180 and $176
Ethereum medium term price prediction: Bullish
Over the medium term, the Ethereum price prediciton is most certainly bullish after Ethereum has managed to climb from a low of $100 to where it currently trades at around $250.
If the bulls manage to push ETH/USD above the current resistance at $271, we can expect immediate resistance above to be located at $280 and $298. The resistance at $298 is provided by a long term bearish .382 Fibonacci Retracement level (drawn in red) measured from the July 2018 high to the December 2018 low.
If the buyers continue to climb above $300, we can expect more resistance above to then be located at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in blue) priced at $315 and $334, respectively.
What are the technical indicators reading?
The RSI is above the 50 level, which is a positive sign as it shows that the bulls are in charge of the ETH market’s momentum. However, the RSI is falling, which indicates that the previous bullish pressure is beginning to run out of steam. If the RSI can remain above the 50 level during the retracement, we can expect the ETH/USD market to rebound and continue higher toward the $300 level.
4 Prominent Ethereum Scaling Projects for 2019
Despite the cryptocurrency prices not looking all that great at this stage, there are still plenty of key developments to look forward to. Especially where Ethereum is concerned, there are a lot of potential upgrades and breakthroughs occurring in the coming few months and years. Both from a short-term and long-term perspective, there is a lot to look forward to.
ETH 1.X SCALING
While most of the Ethereum developers and community are working on long-term scaling solutions, it is rather evident the near-term needs to be addressed as well. Thankfully, it seems a team of developers is working on offering viable solutions over the coming weeks and months. By actively pursuing solutions to address scaling and sustainability, as well as paving the way for ETH, this initiative can make a massive impact on Ethereum. Over the past few years, there have been numerous concerns as to how Ethereum is incapable of handling its own success in many different ways.
Some of the concepts being explored include state fees and stateless clients, as well as potential sync protocol improvements. Combined with the ongoing work on Geth and Solidity, there is a lot of work going on behind the scenes. There is still a somewhat big gap between the current iteration of Ethereum and the next version. Ensuring this transition occurs as smoothly as possible will be a tough challenge, but far from an impossible task.
NIMBUS THE SHARDING CLIENT
For those who are not too familiar with how the Ethereum ecosystem works, there is a strong focus on sharding to scale Ethereum to new levels. The Status.im team is currently building a client which will provide convenient access to sharding. That solution is known as Nimbus, which currently has its own testnet to collect valuable feedback and iron out any bugs which might still be present.
What makes Nimbus so exciting is how it acts as a sharding client for resource-restricted devices. The true impact of this solution has yet to be determined, however. For now, the Nimbus-to-Nimbus testnet is up and running and can be explored by anyone who has an interest in checking out this client. For Ethereum, this is a pretty big breakthrough, assuming the project will work as expected
PRYSM – THE GO IMPLEMENTATION OF ETH 2.0 SERENITY
Numerous aspects of Ethereum will need to be modified and upgraded to accommodate these upcoming changes. That in itself may prove somewhat challenging, although the Prysmatic Labs team is making significant progress. They are currently focused on offering a new Ethereum Serenity implementation known as Prysm. Making it compatible with the ETH 2.0 code base is direly needed, although the work is not over yet at this time.
For the time being, users can participate in the Prysm testnet phase. They can opt to set up a beacon node and validator client. To activate one’s validator, a deposit of 3.2 Goerli ETH needs to be completed. This deposit will take some time to be processed, yet it should become accessible fairly soon. These validators will also be actively staking ETH, thus a user’s balance should go up over time if one’s node is configured correctly.
SIGMA PRIME’S LIGHTHOUSE
Another Ethereum-oriented project worth keeping an eye on comes in the form of Lighthouse, a solution developed by Signa Prime. Similar to all of the other main ETH 2.0 projects, there is a working testnet accessible to users already. For the project as a whole, this is a major breakthrough. A lot of work has been poured into Lighthouse over the past few months, primarily because the team wanted to launch its testnet by late March of 2019 at the latest.
As is usually the case with any testnet, there is room for further improvements. The team is looking to offer three hash caching implementations, as well as other improvements and bug fixes. Ultimately, the team hopes to achieve true interoperability with other Serenity clients, such as the ones named above. Building a multi-client testnet is no easy feat, yet achieving it will be the main objective prior to ushering in the era of ETH 2.0.
Vitalik Proposes Mixer to Anonymize ‘One-Off’ Ethereum Transactions
“We need a first step toward more privacy,” Vitalik Buterin, founder of the ethereum blockchain network, said Wendesday.
In a new HackMD post, Buterin detailed a design to help obscure ethereum user activity on the blockchain. More specifically, Buterin proposed a “minimal mixer design” aimed at obfuscating user addresses when sending fixed quantities of ether (ETH).
According to Buterin, users can transact in one of two ways. “The default behavior” is to send and receive ether from a single account, which, of course, also means that all of a user’s activity will be publicly linked on the blockchain. Alternatively, users can transact through multiple accounts or addresses. However, this too isn’t a perfect solution to obfuscating user activity on the blockchain.
“The transactions you make to send ETH to those addresses themselves reveal the link between them,” detailed Buterin in his post.
As such, by creating two smart contracts on ethereum – “the mixer and the relayer registry” – users can opt-in to making private transactions on the ethereum blockchain through what is called an anonymity set.
Buterin told CoinDesk in a follow-up email:
“Anonymity set is cryptography speak for ‘set of users that this thing could have come from.’ For example if I sent you 1 ETH and you can’t tell who exactly it was from but you can tell that it came from (myself, Alice, Bob or Charlie), then the anonymity set has size 4. The bigger the anonymity set the more privacy you have.”
Buterin added that the design does not require any changes to ethereum on a protocol level but could be something implemented by a group of users today.
To this point, Eric Conner, product researcher at blockchain startup Gnosis, noted that a key strength of Buterin’s proposal was precisely its ease for integration.
“Strengths are it gives us a solid privacy solution if users want it,” Conner explained. “The goal is to make a solution that can be easily integrated into current wallets.”
At the same time, the design proposed by Buterin does require users to pay a fee – called gas cost – in order to send private transactions. However, for the use cases that Buterin envisions in his mind the fee won’t be a major deterrent for users
Buterin tweeted about the design:
“The main use case I’m thinking of is a one-off send from one account to another account so you can use applications without linking that account to the one that has all your tokens in it. So even though it is a 2m gas cost, it only needs to be paid once per account, not too bad.