Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.
Despite the rather poor performance of ETH this year, from a macroeconomic point of view, Ethereum validation among financial institutions has increased markedly.
Ethereum prices this year were lower in growth than Bitcoins, as the second-largest cryptocurrency this year increased less than 5%, notwithstanding BTC in spite of that maintains a staggering 95% increase since the beginning of the year, despite previous selling.
In light of the successful introduction of the latest network updates in Istanbul hard fork and the growing popularity of DeFi, does catching up with ETH means a viable strategy for investors? From a macroeconomic point of view, Ethereum validation among financial institutions has increased markedly, what does this imply for wider ETH investors?
Even though several elements could be related to the lack of ETH’s effectiveness, conducting a multi-layered analysis could give us a more comprehensive view of Ethereum and whether ETH prices can make a determining change in the future.
Nevertheless, everything may seem not so much reliable, given the usage factor. The number of active Ethereum addresses has stabilized at around 300K since touching 600K in June 2019. Similarly, the number of active Bitcoin addresses mainly ranged from 500K to 700K in the second half of this year, after reaching 900K in late June.
Another level of evaluation that we can add to the Ethereum blockchain is the emergence of DeFi. Markets seem to be buying promising DeFi prospects and gaining momentum elsewhere. We believe that Ethereum is in a good position to capitalize on DeFi’s growth in the long run, and we expect to see more and more high-value transactions going through the Ethereum blockchain, and this could be a positive factor for ETH prices shortly.
From a macroeconomic point of view, the birth of DeFi has also changed the market’s forecast for Ethereum: from a service token to a more expensive transaction calculation application. Furthermore, even though Bitcoin has long been considered a storehouse of values, DeFi can also pave the way for Ethereum to strengthen its storehouse of values. We anticipate this switch to look extra apparent in 2020, along with the sudden development of the DeFi markets.
Ethereum Unchecked Major Support and Resistance Levels
Supply Levels: $143.33, $131.80, $125.00
Demand Levels: $180.71, $157.73, $150.00
At the time of writing, Ethereum was up 0.01% to $145.56. The mixed start to the day led Ethereum to rise to an early morning high of the level at $146.29 and then fell to a minimum of price level at $144.71.
Ethereum had to go up to the level of $147.90 in order to support the breakdown of the first main resistance level at the level of $150.90. However, with the exception of cryptocurrencies, Ethereum should stay away from the second main support level at $143.33.
However, support from the wider market may be required to ensure that Ethereum breaks from the morning high of price level at $146.29. If there is no crypto-wide rebound, resistance on the level at $150 is likely to limit any growth potential for the day.