- Ethereum will experience a strong growth on the back of Oracle integration.
- Currently, ETH/USD is rangebound at $215 handle.
Ethereum, the second largest cryptocurrency is hovering around $215 handle, off the recent high reached at $223. The decline is driven by technical and speculative factors as traders seek to lock profits after a strong rally. ETH/USD has reversed from the overbought territory. The Relative Strength Index (RSI) is close to a neutral level, which means that some period of consolidation may be in store.
Meanwhile, an analyst Ian McLeod believes that Ethereum will experience a strong rally once smart contracts will be able to receive the external data.
“We can expect Ethereum to hit $500 by the end of 2018,” stated McLeod, who is also a digital currency investor and trader.
This growth will materialize on the back of deeper integration of smart contracts in our real life. The expert refers to Oracle technology that might be integrated into Ethereum platform and gather data without compromising the decentralization principle. Chainlink Oracle Services made the first steps towards this important achievement by entering a partnership with bZx Margin Trading Protocol to power margin lending on Ethereum network.
Ethereum’s technical picture
The local support area for ETH/USD is created by a confluence of SMA levels around $207 (4-hour chart). Once it is cleared, the downside may continue towards $200, where new buyers are likely to join the game. On the upside, we need to get above $220 and $223 to proceed to the stronger resistance at $232, which capped the recovery attempts back in September.
ETH/USD, 4-hour chart