Ethereum related news remain bullish and just recently, the Austrian government used the platform to auction their bonds. On the other hand, ETH prices are bearish, failing to close above $250 despite three weeks of higher highs. Because of the way candlesticks are arranged, we retain a bearish to neutral stand until after our trade conditions are met.
Latest Ethereum News
Here’s a unique property of Ethereum as a platform: it allows for normal, day to day users to appreciate the powers of blockchain technology.
As a smart contracting platform, the value of Ethereum depends on use because the coin isn’t a cryptocurrency per say. The native coin on the platform, ETH can thrive on its own ecosystem. That’s the reason why many analysts and market influences as Jeremy Rubin, the CTO of Stellar platform thinks the full potential of Ethereum is yet to be explored. Though he is negative on price because of this independence, Ethereum is an influential platform especially for dApp developers and start ups seeking to raise funds through initial coin offerings or crowdfunding.
Recently, it was announced that the Austrian government will make use of the Ethereum blockchain to auction $1.35 billion worth of government bonds. A bank, Oedrerrichische Kontrollbank (OeKB) will oversee the auction on behalf of the government. This comes months after the Austrian government set up the FinTech Advisory Council at the Ministry of Finance allowing Austrians to reap maximum benefits from technological developments.
Austria is not the only country looking at Blockchain. Malta, fondly described as a “Blockchain Island” is trailblazing as far as adoption of blockchain and cryptocurrencies is concerned. That’s aside from Switzerland, Russia, Singapore and UAE that in one way or another are incorporating this nascent technology for better service delivery.
Ethereum (ETH) Price Analysis
ETH Weekly Chart
Despite obvious upside resistance, ETH prices are up eight percent in the last week. At the back of strong bull pressure and two weeks of back to back gains complete with spike in market participation, ETH is towing with the general market sentiment. From candlestick arrangement, we have our reservation for bulls. Notice that even after three weeks and sharp volume increase by week ending Sep 23, buyers didn’t generate enough momentum to clear week ending Sep 9 losses or $250, the lower limit of our resistance zone.
Because of this, there are high odds that bears are still in charge and with every higher high, there is seller liquidation suppressing prices. Aside from that from an effort versus result point of view, sellers are in control because even after three weeks of higher highs, buyers didn’t reverse losses from a single bearish engulfing bar dropping from $250.
ETH Daily Chart
This is the fifth day of horizontal consolidation in the daily chart. At this time, not only are prices below the first buy trigger at $250 but they are trending inside Sep 27 bull bar. This lack of volatility cements out neutral to bearish stand and from our previous Ethereum price analysis, we recommend patience aware that there is an overshadowing, selling effect of Sep 5 bearish engulfing bar which buyers are yet to shake off.
So, in days to come aggressive traders can exploit current sentiment and buy at spot rates but with tight stops at $200 or Sep 27 lows. Remember, any close below $165 or Sep lows will automatically trigger the next wave of sell pressure eying $75.
On a more optimistic approach, gains above the upper limit of our resistance zone $300 or Sep 25 high will be inviting for bulls aiming for $400.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.