On Thursday, July 23, Ethereum price that was moving higher just yesterday consolidated near $260-265.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
On W1, ETH/USD keeps developing an uptrend. The price bounced off 50.0% Fibo and broke away 61.8%. The growth may further develop to the nearest resistance level – $285.00 USD. The MACD histogram has been above zero for several weeks, which may mean the development of the ascending dynamics. The signal lines of the indicator have formed a Golden Cross under zero, demonstrating the prevalence of buys over sales. The Stochastic keeps growing from 20, which also supports further growth.
On D1, the situation hardly differs from that on W1. The pair has grown significantly from the lower border of the ascending channel. The aim of the growth is, again, the resistance level at $285.00 USD. The MACD histogram is moving to the positive zone supporting the signal for growth. In the current trading situation, growth is more probable than a decline to $225.00 USD.
On H4, the pair has overcome the upper border of the descending channel, which may mean the end of the correction inside a general uptrend. A breakaway of the resistance level has started a new wave of growth to $285.00 USD. The Stochastic has formed a Golden Cross and keeps moving to the overbought area, increasing the chance for further growth. However, a correction before the continuation of the growth should not be excluded.
This week, we have heard of the Ethereum Foundation launching two test versions of the Ethereum 2.0 update. Lighthouse users are asked to find weak points in the network that hackers might use for attacks. According to the developers, the test version has certain limitations but in general, it is similar to the real one.
The users of the test version have the following task: they have 102 minutes to bring the network out of operation and breach its safety system. The developers try to prevent damaging a block in the network that could provoke several problems in the blockchain – from changing the history of transactions to a repeated transfer of money.
Those who will succeed in breaching the system safety, the Ethereum Foundation will offer a $5,000 USD reward.
We have been waiting for the launch of Ethereum 2.0 for so long that even such news matters.
The perspective of the Ethereum rate remains thrilling. For example, one of the Euronext Amsterdam economists suggests that a new bullish wave in the crypto sector will raise the ETH rate to $2,000 USD. Simultaneously, the whole sphere of digital money will experience high volatility (as if this surprised anyone).
Well, today, July 23, Ethreum looks definitely good and may enjoy high demand soon but it needs a serious and long-term fundamental reason for it. This could be the launch of Ethereum 2.0 – but we do not know any dates for certain.
Disclaimer: Any predictions contained herein are based on the author's particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.