After weeks of walking sideways, Ethereum (ETH) finally broke through $ 1,600 and confirmed the breakdown of the historic top.
Do you want to know what to expect from this asset after this move and how to prepare for a big rise that may be coming?
Check out today’s analysis!
We will start our analysis by the daily chart where we can clearly see Ethereum making a strong break from consolidation and also the OBV indicator that shows the strength of a given movement indicating that the break was strong and we probably will not have a relevant drop anytime soon in this asset:
4 hour chart
If you are out of this movement, watch out for any price correction between $ 1,450 and $ 1,550, which is where we have short-term support:
Now with the strong break from the historic top on the weekly chart with a buying force candle formed. We can expect Ether between $ 2,000 and $ 2,200 over the next few weeks and in the event of a strong correction be aware of the LTA formed by funds 1 and 2 on the weekly chart:
My expectation is to see a movement up to US $ 2,000 – US $ 2,200 and then a correction back to US $ 1,300 to buy this asset again at a good price in relation to its market moment:
Ethereum and Bitcoin
It is also worth mentioning that the ETH / BTC has been showing a strong trend reversal in the last few months and could go up to 0.07 – 0.08 Bitcoins which would be more than 50% high which would bring the ETH / USDT to US $ 2,300:
Read also: Forbes lists 4 cryptocurrencies that outperformed Bitcoin
Read also: MicroStrategy talks about Bitcoin to 1,000 executives; what can change?
Also read: BNB will shoot later this Wednesday, predicts analyst
Notice: The information contained in this document is not guaranteed, is not intended to be comprehensive and is strictly for informational purposes only. It should not be considered as an investment / trading recommendation. All information is believed to come from reliable sources. CriptoFácil does not guarantee the precision, accuracy, or completeness of the information in its analysis and, therefore, will not be responsible for any losses incurred.
Ethereum founder Vitalik Buterin strongly supports Layer 2 solutions for scaling
- Vitalik Buterin called the need for urgent scalability for Ethereum and the need to implement rollups.
- The Ethereum founder called Layer 2 the safest way for scaling while preserving decentralization.
Ethereum founder Vitalik Buterin has come in support of Layer 2 scaling solutions for the Ethereum blockchain network. Buterin shared his views during his latest speech at the 2021 Shanghai International Blockchain Week.
The recent support from the Ethereum founder comes just at a time when developers are already working for the launch of Ethereum 2.0 Proof-of-Strake (PoS). Buterin noted that Ethereum 2.0 surely offers scalability and earlier phases of the upgrade are already approaching it. However, the base layer scalability for applications will come in the last phase of the upgrade.
During his speech, Buterin also admitted that Ethereum needs to be more scalable urgently. This demand for scalability comes amid the explosive growth of non-fungible tokens (NFTs) and decentralized finance (DeFi) on the Ethereum blockchain network.
Thus, Buterin added that Layer 2 is the future of Ethereum scaling. He also called it the safest way to scale Ethereum while preserving the core ethos of decentralization. Some of the popular Layer 2 solutions for Ethereum are Polygon Hermez, ZKSync, Loopring, Arbitrum One, and Optimism.
As the Ethereum 2.0 upgrades take place progressively, there’s a significant amount of work underway to make Ethereum more secure, scalable, and sustainable. The Beacon Chian upgrade last year in December was a milestone event. The Altair upgrade coming to Ethereum later today will also bring new features to the Ethereum Beacon chain.
Ethereum’s mainnet merge along with the Beacon chain’s proof-of-stake system will mark the end of the existing Proof-of-Work Ethereum network. This will likely happen sometime in the next year of 2022. Furthermore, another multi-phase upgrade Sharding will happen in 2022. Sharding improves Ethereum’s scalability and capacity using parallel running shard chains.
Vitalik Buterin speaks about Rollups
During his speech, the Ethereum founder also spoke about another Layer 2 solution dubbed Rollups that handles transactions outside the main Ethereum chain. Later, these Rollups post the transaction data on Layer 1. Vitalik Buterin further added:
The Ethereum ecosystem is all-in on rollups as a scaling strategy for the near and mid-term future… optimistic rollups, which are simpler and easier to build were likely to be preferred in the short-term.
The Ethereum founder also noted that the ZK rollups have a complex implementation but offer higher security. Buterin added that this solution is preferable for the long term. Once the ZK rollups are ready on Ethereum, even enterprise applications will be able to leverage it.
The Ethereum founder also requested application developers to start working actively on rollups and moving to its use quickly and safely. Buterin added that the Ethereum ecosystem is betting completely on rollups as a scaling strategy for the near and the mid-term. He added that optimistic rollups are simpler and easier to build and preferred in the short term.
Ethereum Price Analysis: ETH spikes below $4,000 as the overall market falls
- Ethereum price analysis is bullish today.
- ETH/USD saw heavy selling this morning.
- Ethereum supported by the $4,000 mark,
Ethereum price analysis is bullish today as the overall market saw heavy selling this morning. Therefore, we expect ETH/USD to recover some of the loss later today.
The overall market saw heavy selling over the last 24 hours, with Bitcoin down by 5.85 percent, while Ethereum lost 4.46 percent. Meanwhile, Shiba Inu (SHIB) and Aave (AAVE) have moved against the overall direction, with a gain of 23 and 29 percent, respectively.
Ethereum price movement in the last 24 hours: Ethereum falls to $4,000 after failing to move above $4,300 overnight
ETH/USD traded in a range of $3,960.37 – $4,299.15, indicating strong volatility over the last 24 hours. Trading volume has increased by 55 percent and totals $24.35 billion, while the total market cap trades around $475.6 billion, resulting in the market dominance of 19.2 percent.
ETH/USD 4-hour chart: ETH finds support at $4,000
On the 4-hour chart, we can see further downside rejected for the Ethereum price action as the $4,000 support is still strong.
Ethereum price action has struggled to see further upside over the past week. Retracement followed after a several-week rally that resulted in a retest of the $4,400 all-time high on the 21st of October.
After an initial move to $3,900, support was later found at $4,000, leading to another move to $4,200 on Monday. Yesterday, ETH/USD struggled to move past the $4,200 mark, resulting in a reversal to the downside.
After the initial drop lower, a sharp spike lower followed this morning. Ethereum price quickly moved back to the $4,000 support, with further downside rejected. Overall, ETH/USD will likely hold the support, meaning we can expect a recovery over the next 24 hours.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bullish today as we can expect recovery after a strong selloff over the last hours. Therefore, as long as the $4,000 support holds, we expect ETH/USD to see further upside later today.
While waiting for Ethereum to move further, read our guides on LTC wallets, Gero wallets, and DeFi wallets.
Can Cardano ever compete with Ethereum on the smart contracts front
The lack of trust while engaging with different parties is one of the biggest challenges that people outside the “smart world” face. Due to the lack of transparency, people end up spending a lot of time and money on intermediaries, before finalizing an agreement.
Smart contracts, on the other hand, provide a solution to the aforementioned problem by eliminating intermediaries and making the system even more transparent.
The Ethereum-Cardano dilemma
Now, Ethereum has been in the space since its inception. It is, arguably, the uncrowned prince of the smart contract space. With time, however, competition has been on the rise, with Cardano being one of the latest ones to step into the arena.
Ethereum’s soaring gas fee has always been a major cause of concern for people from the community. This week alone, the fee has crossed 250 gwei and 350 gwei a couple of times.
In effect, Cardano-based smart contracts can take advantage of the aforementioned vulnerability of Ethereum. If it successfully manages to do so, then smart contract clients wouldn’t hesitate to swap their networks.
Well, Cardano is obviously new to this space and as they say – New utility means new adoption. However, there’s hardly anything for Cardano to show yet. The number of contracts executed has been quite low.
As per Statista’s chart, the rounded transactional volume did witness a massive spike post the Alonzo hard fork. However, it hasn’t been able to sustain those levels. In fact, it has been falling sharply over the past few days.
Nevertheless, it should be noted that Cardano has entered this space at the right time. It can leisurely experiment and see what works and what doesn’t because it has the luxury of time that other platforms might not necessarily have when they decide to join later.
Cardano is the first blockchain to be developed using peer-reviewed research and evidence-based methodologies. In effect, several analysts have already started claiming that its output efficiency is higher and better than that of Ethereum.
Now, a new bridge is being built from Ethereum to Cardano. Using this bridge, NFT creators will be allowed to easily move their non-fungible tokens from the energy-intensive Ethereum blockchain to Cardano. In retrospect, this would be great for the latter network’s adoption.
Development activity is another key yardstick that can be used to assess where different networks/protocols stand.
Well, Cardano has been able to maintain fairly high levels on the development activity chart, relative to Ethereum. Even at the time of writing, Cardano had an upper hand when compared to its counterpart.
However, to emerge as a winner, Cardano would have to provide top-notch cross-chain interoperability, fast transactions, and predictable fees, among other services and facilities.
It has started off in the right direction, but only time will tell if it can surpass Ethereum’s popularity.