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  • ETH/USD is trapped in a tight range, the breakthrough is imminent.
  • Ethereum’s founder shares his thoughts on project development.

Ethereum, the second largest coin by market value, is trading above a critical $220 handle, though the momentum for a decisive breakthrough is missing. The coin is unchanged both on a day-on-day basis and since the beginning of Monday. Ethereum’s current market value is $23B, while the average daily trading volume is registered at $1.4B, in line with long-term average figures.

What’s going on

Ethereum creator Vitalik Buterin shared his thoughts on what was the biddest changes in Ethereum Foundation over the mast fifteen months. While answering the questions from Twitter users, he listed four major developments:

” 1. Casper/sharding spec roughly finished, now in refinement stages.

2. 4+ implementations of the spec well underway.

3. Many implementations of plasma well underway

4. ZK-SNARK-based layer 2 scaling and privacy well underway It’s a night-and-day difference from 2017.”

The community seemed to be excited with the progress, however, Ethereum users are waiting for Constantinople update that has been delayed several times. Recently, the leader of Ethereum dev team Peter Szilagyi announced the delay of the launch of Constantinople update on the test network Ropsten due to revealed vulnerabilities.

Ethereum’s technical picture

From the intraday perspective, ETH/USD is getting ready for an escape out of the triangle pattern. The direction of the breakthrough will define the short-term future of the coin.

Currently, the upside is capped by a combination of SMA50 and SMA100 (4-hour chart) at $225. This area is enhanced by the short-term downside trendline from September 22 high at $254. Once it is cleared, the coin may retest $230 handle and push towards $235.40    (50.0% Fibo retracement and October 1 high).

On the downside, the first support is created by $221 (short-term upside trendline from September 25 low at $203 and the lower line of a triangle pattern). It is followed by $214 (October 3 low). If it is broken, the sell-off will continue towards the psychological $200.

ETH/USD, 1-hour chart