Ethereum Price Analysis: ETH/USD Coming Towards the End of Triangular Pattern, Breakout is Around the Corner
- Ethereum’s Annual Devcon is just under two weeks away, to be kicked off from 30th October – 2nd.
- ETH/USD price action has been narrowing within a triangular pattern, subject to a breakout.
Ethereum’s Blockchain Upgrade Faces Delay
Just a few days ago, Ethereum’s software upgrade, had a failure, as Constantinople – proposed hard fork did not activate on the test network Ropsten. Ethereum has been planning to implement the Constantinople upgrade in November. However, given the failed attempt seen in the testing stage of the upgrade, this appears to have now shifted plans. The Ethereum infrastructure organization, Infura tweeted: “Due to a consensus issue with the Constantinople fork, Ropsten is currently not usable. The Ethereum dev community is investigating. Until further notice please utilize one of the other Ethereum testnets.”
As a result, the developers at Ethereum had released a patch, to fix the bug problem. An independent developer working on the project, Lane Rettig, commented on the delay, noting that they are investigating the failure to upgrade. Rettig said: “I would expect it to get delayed to 2019.”
Wave IV of Grants Program Distributed for Ethereum Development
Millions of dollars have been distributed by the Ethereum Foundation to projects that are contributing to the development of Ethereum. A full breakdown of the grants distributed can be viewed in their latest blog post. The funds totaling over $3 million, were sent out to 20 individuals and groups, that are working on the Ethereum blockchain.
Ethereum Annual Developer Conference
It is not long now until Etheruem’s Devcon 4, which will be held from Oct 30th–Nov 2nd in Prague.
Devcon is Ethereum’s “family reunion.” It is hosted to educate and empower their community to build decentralized applications, bringing Ethereum protocols, tools, and culture to the world.
The annual conference is for “builders: designers, UX researchers, smart contract devs, blockchain researchers, client implementers, test engineers, infrastructure operators, community organizers, and even artists in the community.”
Technical Review – 4-hour Chart
ETH/USD has been stuck trading within a triangular pattern, since mid-September. The price has swung between a low seen around $170 up to a high within $255 territory, within this period. Over the past three weeks price action has been narrowing. As a result, ETH/USD is moving closer towards the end of the pattern, looking very likely of a breakout. On 15th October, the price saw a large surge in volume, which as a result saw a quick upper wick spike outside of the pattern. However, on the close of that candle, the price was back within the triangle.
Furthermore, resistance to the upside is eyed at $215, the upper trend line of the pattern. A break north will likely see the above supply zone tested again, $250-255 region. Finally, in terms of support, this can be seen at the lower part of the pattern, just below the $200 mark at $197. Consequently, should bearish momentum push for a breach, a below demand zone will likely come into play at $180-165 area.
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.
Featured image courtesy of Shutterstock.