Ethereum (ETH/USD) has been pushing higher over the past two weeks, with prices crawling back above $300.00 for the first time since June.
ETH/USD Hits One-Month High
The ETH/USD exchange rate approached $315.00 on Wednesday, the highest level in over a month. The price pulled back on Thursday to settle just above $300.00. Prices held relatively steady at the start of Friday trading, giving etherum a market cap of roughly $28.2 billion.
With Thursday’s advance, ethereum has risen for six consecutive days and is up 50% compared to two weeks ago when it traded around $200.00.
The cryptocurrency has forged a new leg higher, with prices well supported north of $280.00. This level prevented the sellers from gaining control of the market on Thursday when the ETH/USD pair entered a mild correction.
South Korean Buyers, ICO Hype Lift Prices
The South Korean won has done most of the bidding lately after lawmakers in the Asian country announced tentative plans to regulate cryptocurrency. According to CNBC, over 60% of ETH purchases are happening in the won currency.
South Korea would become the second Asian country to regulate cryptocurrency. Earlier this year, Japan spearheaded legislation recognizing bitcoin as a legal payment method. The announcement propelled the digital currency market to new record highs.
Ongoing hype surrounding initial coin offerings (ICOs) is also boosting buyer interest. ICOs are similar to crowdsourcing in that they allow startups to raise money by offering funders a stake in the company. ICOs raised $1.2 billion in June and July to surpass early stage venture capital.
In June alone, ICO funding exceeded $550 million. By comparison, angel and early VC funding came in at just under $300 million during the same month.
Bitcoin Stabilizes Near Record High
Ethereum has flown under the radar in recent weeks as infighting broke out in the bitcoin community. The rapid rise and fall of Bitcoin Cash – the newest edition to the cryptocurrency family – has had a minimal impact on the broader market. In fact, bitcoin prices surged to new highs this week as its mining community voted to accept the new Segregated Witness (SegWit) upgrade.
SegWit has been designed to scale up bitcoin’s capacity to boost efficiency and speed on the cryptocurrency network. It was also the point of contention that caused the chain split on Aug. 1.
Bitcoin Cash briefly spiked above $11 billion shortly after the fork, according to coinmarketcap.com, before crashing back down. On Friday, the market was valued at $4.6 billion – roughly $280.00 a coin.
Bitcoin (BTC/USD) has shot up to nearly $57 billion, with token values reaching multiple record highs. The BTC/USD traded within a narrow range Thursday and was last seen hovering just above $3,415.00, according to Bitstamp.
Trade Recommendation: Stellar
The price bounces from SMA50 which is a support line for the market. MACD lines support upward movement. Also we can draw a pennant chart pattern which also confirms further upward movement. If the price breaks the resistance line of the pennant, this pattern will be realized as a continuation pattern. It will give us an additional confirmation of the upward movement. Pending orders for buy should be placed at 0.035000 level with stop orders at 0.028000 level. The main profit target should be at 0.048000 level. The part of trade volume can be left for the higher target at 0.070000 level. If you don’t use leverage, recommended trading volume for this trade is up to 5% from your deposit.
Profit Targets: 0.048000
The trading signal is based on Poloniex chart.
Trade Recommendation: Lisk
A new attempt to catch a trend reversal. The price diverges with MACD and it gives us a buy signal on the falling market. DMI allows to open long trades. We should place pending orders for buy above the previous high at 0.000840 level. Stop orders must be placed below the support at 0.000680 level. Profit targets are 0.001200 and 0.001400 levels. The part of trade volume can be left for long run. If you don’t use leverage, recommended trading volume for this trade is up to 5% from your deposit.
Profit Targets: 0.001200 and 0.001400
The trading signal is based on Bittrex chart.
Ether Prices Fall Below $300 Amid Technical Breakdown
Ether declined against the dollar this weekend, and is now approaching a critical support level as the market corrected lower following last week’s failed rally.
$350 Proves Elusive
ETH/USD was last seen trading around $293, down more than 1% from the previous close. Technical headwinds are limiting ether’s momentum, according to the MACD and Relative Strength Index (RSI).
Ether’s rally last week stopped short at $350 on two occasions, as the bulls disavowed their long positions. The subsequent breakdown through the weekend erased 16% from Ethereum’s value.
At present levels, the Ethereum blockchain is capitalized at nearly $28 billion, according to CoinMarketCap.
The world’s second-largest digital currency by market cap faces immediate support near $290. On the opposite side of the spectrum, resistance is likely found in the $305-$310 region.
Upgrade Still Not Stable
Ether underwent a successful hard fork last week, but the blockchain has yet to be deemed stable by its chief developer Vitalik Buterin. Ethereum’s chief architect has already informed the market that up to two months of further testing may be needed to fully secure the blockchain.
The first leg of the Metropolis hard fork occurred last Monday after block 4,370,000 was mined. The blockchain successfully avoided a chain split even after Geth developers addressed a last-minute denial-of-service (DoS) vulnerability. Geth is the most popular software on the Ethereum network.
The Metropolis protocol will require a second update, called Constantinople, before it is function. No timeline for the Constantinople upgrade has been provided.
Ethereum has been one of the main participants of this year’s cryptocurrency rally. It has also emerged as the platform of choice for startups to launch their initial coin offerings (ICOs). The vast majority of ICOs covered by Hacked.com have been developed on the Ethereum blockchain. This weekend, the author conducted an in-depth review of Spectre, a broker-less trading platform powered by ether.
Featured image courtesy of Shutterstock.
- Trade Recommendation: Stellar October 23, 2017
- Crypto-Friendly Japan Mulling ICO Ban? October 23, 2017
- Trade Recommendation: Lisk October 23, 2017
- More Powerful than an Emperor October 23, 2017
- Small Cap Trading Frenzy Drives Penny Stocks In October October 23, 2017
- Asian Market Update – Monday: Tokyo Gains after Election Landslide, Minor Losses in China, S. Korea October 23, 2017
- Ether Prices Fall Below $300 Amid Technical Breakdown October 23, 2017
- Buy FDS, PPC, BERY, and IIVI for the short-term October 22, 2017
- Notable Bitcoin Price Growth Events in October October 22, 2017
- Trade Recommendation: Monero October 22, 2017
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