Ethereum price analysis: Bulls defend support, is this a breakout?

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  • Ethereum is trading within a contracting triangle pending an upside break.
  • Ethereum co-founder Joseph Lubin believes blockchain will be fundamental the decentralization of the internet.

The market is still silent on Monday following the weekend drop that cancelled most of the gains that occurred last week. Ethereum (ETH) corrected lower below $210 before the bulls defended the support at $207.

There have been attempts to push the price towards $215 but the rising selling pressure in the market has limited the gains short-of $214. Besides, both the 50 SMA and the 100 SMA are the immediate significant hurdles on the hourly chart. Ethereum is also trading within a contracting tringle, which means a breakout is around the corner.

A break out of the triangle resistance will overcome the resistance at $215 and embark on a correction above $220. Ethereum buyers have heard eyes on $230 for a couple of weeks. Moreover, trading above $230 means that $250 will be well within reach in the coming weeks. As mentioned before, the support at $207 will continue to be the line in the sand. Other vital support areas include $200 and $190.

Ethereum has been lacking the support in the market for some time. However, the incoming upgrade of the network will accord the digital assets the support it has been yearning for. Likewise, with this upgrade, Ethereum will be able to cement its position in the market as a building platform and the second largest legacy asset in the industry. The co-founder of Ethereum, Joseph Lubin has been reported to have said that blockchain will be fundamental to the transformation of the internet. He said this while speaking at the Web Summit held in Lisbon. He believes that the future of the internet is complete decentralization. He reckoned:

“Ethereum is far in the lead as a viable candidate for web 3.0 largely because of its interoperable and radically decentralized nature. It may be a few years before our ecosystem achieves profound interoperability and decentralization in the base and higher layers.”

Lubin continued:

“But that is okay. We can grow into the radical future we imagine as we take care of adoption, use case exploration, user interface and user experience definition – all of which will keep us busy for years.”

ETH/USD 1-hour chart

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