The price of Ethereum continues to maintain its uptrend in the short term. This makes us wonder if will be able to overcome effectively the barrier of USD 250. To find an answer, we have carried out the analysis of the ETH that you find below.
Fundamental analysis of Ethereum
One of the main reasons of success of the network Ethereum, is the development environment without limits. Where all participants can contribute to the growth of the same, and even use it as a basis for the resolution of needs totally unrelated to the project itself, through the development of decentralized applications.
Thanks to this ecosystem and today the network has more active users between the altcoins, according to data from the metric FCAS, which stands for Fundamental Crypto Asset Score, provided by this program. This metric measures the activity of the users, the maturity of the asset, and the development activity in more than 450 projects crypto.
Top 15 Altcoins organized by activity of users on the network. Source: Reverse Side
The environment of massive development of dApps that owns the network ETH, despite being a great indicator of growth, it is also a problem at the same time. Since it increases the stress of the network, and puts to the test one of the most important challenges of the Blockchain, scalability.
However, being Ethereum 2nd criptomoneda largest in the world, the developers are fully aware of that, and are in favour of increasing the capacity of the chain.
Path to Serenity
From 2018, an update of the network has been in process, known as Serenity. The main purpose of switching to a Blockchain-validated with Proof of Participation, a model a lot more scalable.
Despite the fact that there is still no fixed date for the launch, it is well known that every time is closer to being a reality, which continues to attract interest to investors criptomoneda.
Interest in Ethereum increases
As has been said repeatedly, the interest investor by the part of large institutions is increasing in the market, crypto, and not only is Bitcoin what they are buying.
Most of the 22% of one of the funds of cryptocurrencies most important, managed by the signature Grayscale, corresponds to investments in ETH. The rise of these large investments will certainly at the price of Ethereum above USD 250.
Net assets under management of Grayscale, posted may 8, 2020. Source: Grayscale
In this way, we are seeing bases pretty good behind the revaluation of the price of Ethereum to USD 250. In addition, the likely continued uptrend for the short and medium term, then we see which are the key levels of supply and demand to monitor.
Technical analysis of the price of Ethereum
The time frame daily, an excellent place to observe the short-term trend. This indicates to us a sentiment bullish, when looking at the minimum each time higher, supported by the EMA and 8 SMA for 18 days.
The SMA of 200 days is also bullish today, following the revaluation of the price in the last few months.
Currently, the price of Ethereum is fighting against a barrier at USD 245, which if overcome, will move quickly to test the maximum recent surrounding $ 250. It is there where is the area of psychological more important, to overcome it, the space will be empty until the area of supply around USD 285. In the short term, the odds are in favor of this scenario.
To wait for sales, ETH should break the support at USD 231,5, although for the moment there seems to be the scenario more viable, it would be entirely healthy, since the time frames higher, the price should make a break.
Technical analysis of the price of Ethereum before over $ 250. Source: TradingView
As I mentioned, from graphics with candles longer lasting, the price is in the middle of the pulse, without making some backtracking valid, however this does not guarantee that you need to perform a breath before continuing.
For the time being, it is more likely that the price of Ethereum to achieve over $ 250, and go find the USD 285, where is the barrier most important weekly, quebrarla would be an excellent signal for the medium term.
The EMA and 8 SMA 18 weeks are crossed to the upside, following the succession of minimum increasingly high observed in smaller frames.
Technical analysis chart weekly ETH USDT. Source: TradingView
All our publications are of an informative nature and in no case should be followed as the advice of investment.