The Ethereum Foundation announced in a recent blogpost on May 21, their plan for spending $30 million to develop the Ethereum network further over the next year.
The $30 million being spent is going to be allocated for three different categories. $19 million is set to be spent on future projects, $8 million is set to be spent on current projects, and $3 million is set to be spent on developer support.
The bulk of the $30 million, which is set to be spent on future projects, is set to include various projects to scale the network. These projects have been dubbed Ethereum 2.0 projects and include client teams, research, documentation and communication, and layer 2 projects like Plasma.
Plasma is set to enable “the blockchain to be able to represent a significant amount of decentralized financial applications worldwide,“ according to the blogpost. The first mention of Plasma was proposed by Vitalik Buterin and Joseph Poon in 2017.
The blogpost also laid out the main reason to scale the platform over the next year in the blogpost:
“Ethereum is used in production today to secure billions of dollars of assets and as a base layer for many hundreds of live applications. We believe that it is vital to continue supporting these efforts to ensure that “Ethereum 1.0” continues to be the world’s dominant smart-contract platform.”
Ethereum (ETH/USD) forecast and analysis on August 20, 2019
Cryptocurrency Ethereum (ETH/USD) is trading at 196. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates the presence of a bearish trend on Ethereum. At the moment, cryptocurrency quotes are moving near the upper border of the Bollinger Bands indicator stripes.
Ethereum (ETH/USD) forecast and analysis on August 20, 2019
As part of the Ethereum forecast, a test of level 200 is expected. Where can we expect an attempt to continue the fall of ETH/USD and the further development of the downward trend. The purpose of this movement is the area near the level of 176. The conservative area for sales of Ethereum is located near the upper border of the Bollinger Bands indicator strip at the level of 205.
Cancellation of the option to continue the decline in the Ethereum rate will be a breakdown of the upper border of the Bollinger Bands indicator stripes. As well as a moving average with a period of 55 and the closing of quotations of the pair above the area of 215. This will indicate a change in the current trend in favor of the bullish for ETH/USD. In case of breakdown of the lower border of the Bollinger Bands indicator bands, we should expect an acceleration in the fall of cryptocurrency.
Ethereum (ETH/USD) forecast and analysis on August 20, 2019 implies a test level of 200. Further, it is expected to continue falling to the area below the level of 176. The conservative area for selling Ethereum is located area of 205. Canceling the option of falling cryptocurrency will be a breakdown of the level of 215. In this case, we can expect continuation growth.
Ethereum Price (ETH) Trading Near Make-or-Break Levels
- ETH price extended its recent upward move and tested the $202 resistance against the US Dollar.
- The price is struggling to gain bullish momentum above the $202 resistance area.
- There is a short term ascending channel forming with support near $198 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could decline a few points, but dips remain supported near $198, $195 and $192.
Ethereum price is showing positive signs above $195 versus the US Dollar, whilebitcoin is up 5%. ETH price is likely to accelerate higher once it settles above the $202 resistance area.
Ethereum Price Analysis
Yesterday, there was a decent recovery initiated in ETH price above the $190 resistance against the US Dollar. More importantly, bitcoin price rallied and climbed above the $10,500 and $10,600 resistance levels (as discussed yesterday). It opened the doors for more gains and ETH/USD climbed above the $195 and $198 resistance levels. Moreover, there was a break above the $200 resistance and a close above the 100 hourly simple moving average.
However, Ethereum price seems to be facing a strong resistance near the $202 zone. The price made a few attempts to gain strength above $202, but it failed. At the moment, the price is consolidating near $200, with an immediate support near the $198 level. Moreover, the 23.6% Fib retracement level of the recent wave from the $184 low to $203 swing high might also act as a support.
Additionally, there is a short term ascending channel forming with support near $198 on the hourly chart of ETH/USD. Below the channel support, the next important support is near the $195 level. The 50% Fib retracement level of the recent wave from the $184 low to $203 swing high is also near $194 to act as a support. More importantly, the 100 hourly SMA is at $194 to provide support if Ethereum dips.
Therefore, the price could decline a few points, but dips remain supported near $198, $195 and $192. On the upside, the price must gain momentum above the $202 and $204 levels. A successful close above $205 might pump the price further higher towards the $210 and $215 levels.
Looking at the chart, Ethereum price is facing a major resistance near the $202 zone. If it continues to struggle, there could be a downside correction. Having said that, the bulls are likely to remain active near the $195 and $192 support levels. Only a close below $190 could negate the current bullish view.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower below the 60 level.
Major Support Level – $192
Major Resistance Level – $202
Ethereum (ETH) Is On The Verge Of A Game Changing Crash
Ethereum (ETH) broke past $200 in an impressive run up yesterday as the price shot straight past the 50 EMA on the 4H time frame breaching the 38.2% fib retracement level from the local top. RSI on the 4H chart for ETH/USD shows that the price is now trading under overbought conditions but if circumstances were different, this may not have stopped it from rallying higher. However, the reality on ground is that Ethereum (ETH) remains in bear trend despite the recent bullish move. The descending triangle that ETH/USD is trading in could end in a lot of blood especially because the next crash is going to be a game changer. The decline below $180 will convince a lot of traders that they have been wrong about the bear market being over or altcoin season being around the corner.
The ICO space is full of scams that are just ready to unfold. When the proverbial hits the fan, we are going to see a lot of these ‘projects’ declare bankruptcy and all of that is going to terribly hurt the altcoin market and coins like Ethereum (ETH) that have been used for such scams are going to be under fire from regulators and investors alike. It is true that there are some very hardworking teams in this space that really want to see this space succeed and they are more interested in the tech than the money but the fact remains that unregulated markets like these attracts all kinds of people and in the absence of meaningful regulation, investors are not protected which means founders of these scam ‘projects’ can just get away with anything. Of course, the end result of all that is that it brings a bad name to the entire space.
I’m a strong believer in the idea that news events or similar developments follow what is happening on the charts. So, if the price is poised for a decline, we will find a reason that supports the crash. Most of the times, it is either an exchange hack, regulatory crackdown or a ban. If we take a look at the daily chart for ETH/BTC, there is no way this looks bullish in any way. The price remains within a descending channel and it has yet to break past the trend line resistance.
Conditions are now ripe for Ethereum (ETH) to begin its next decline which I believe will have game changing consequences. Confidence in altcoins is going to decrease further and when that happens more of the scams in this space will get exposed which is going to induce more fear in the market that will in turn hasten the inevitable which is Ethereum (ETH) falling to a price of $60 or lower toward the end of this bear market. There are a lot of people that are even more bearish calling for Ethereum (ETH) to go to zero but I don’t think that could happen. I wouldn’t discount a move to a single digit price but I don’t see ETH/USD going to zero despite all its flaws, shortcoming and unreasonable valuation.