Ethereum Price Analysis: Core Developers Eye ASIC-Resistant Algorithm ProgPoW Integration
- The Ethereum core developer team discussed in their most recent meeting the integration of an ASIC-resistant algorithm, ProgPoW.
- ETH/USD price action is within consolidation mode; a formation of a pennant structure is eyed.
ETH/USD: Recent Price Behavior
The Ethereum price action has been slowly grinding higher but is still very much choppy for the time being. Market bulls are yet to show full commitment, as can be seen despite the small advances. The price has done little since 25th February. ETH/USD has traded within a range of $147 to a low of $127, the tightest and longest range observed since October 2018.
Earlier in the month, Ethereum did breakout from a descending channel formation, but failed to capitalize on this. The price not long after entered consolidation mode, flirting with a critical demand area within the $130 territory. There are still signs of the buyers gradually positioning themselves for a run higher.
Integration of ASIC-Resistant Algorithm ProgPoW
In recent weekly meeting among the Ethereum core developers, a consensus was reached for the implementation of the ASIC-resistant algorithm ProgPoW. A time frame for implementation has yet to be provided.
It is now the second time that the developers have approved ProgPow, as previously observed in a meeting held back in January. They supported the same algorithm; however, the developers decided to halt integration plans until it was audited by a third-party. The developers debated about the algorithm’s effectiveness, in addition to its advantages over others to suppress the efficiency of ASICs.
One of the team members from the Ethereum core developers, Greg Colvin, said:
“We’re going back to stuff we were tired of talking about months ago! We Decided that the only issue is whether there were errors in the algorithm, backdoors in the algorithm, anything like that. Not arguments between the GPU people and the ASIC people. That will unroll over time.”
Technical Review – ETH/USD
Given the earlier noted price consolidation, ETH/USD has formed somewhat of a triangular pattern formation, also eyed as a pennant. The structure of this started on 16th March and is still moving within at the time of writing. There are growing signs of a potential breakout higher, given the extremely narrowing fashion of current price action.
Resistance is immediately observed around the $141-$142 price range, where the upper acting trend line is tracking. A breach and closure above this area could invite a decent wave of buying pressure. The next target zone of interest for the bulls would likely be where the price faltered on 24th February. There is a chunky range of supply which tracks from $165 up to $172, and sellers most recently piled in here.
In terms of support, this noted around $140-$139 range, where the lower acting trend line of the pennant structure is tracking. A failure to hold could see an initial sharp drop to the below demand area, $135-$128. Further south, eyes would be on a retest of the significant psychological $100 mark to the downside.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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