ETH Price Is Growing, Buterin Believes Ethereum Is Strong as Never

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.

• ETH/USD tech analysis
• Buterin: the Ethereum platform is strong
• The ETH joined the Japanese crypto index
• The ETH could grow in price on the coronavirus news but alas

On W1, the Ethereum price does not demonstrate any serious changes in market moods yet. The growth that we can see does not show any signs of a reversal and thus is interpreted as a pullback before another decline. The nearest important goal of the decline is the psychologically important level of $100.00, and after it is broken out, the market will have to pass the fractal minimum of $80.86.

Further descending is supported by the MACD and Stochastic values. The MACD lines have moved to the negative area, while the Stochastic lines are aimed at the oversold area.

On D1, after a break of the downtrend and securing of the quotations above the previous resistance line, a channel of growth was formed. By now, the market has reached 23.6% Fibo, performing the correction scenario of the previous downtrend. Further aims of the growth are at 38.2% ($210.43) and 50.0% ($239.50). The support is still at $116.06.

Photo: Roboforex / TradingView

ADVERTISEMENT

On H4, we may see the development of an uptrend inside a stable channel. After a Gold Cross on the Stochastic, the quotations are developing an impulse of growth to the local high and the level of $210.43. The support is at $164.67. A breakout of this level will be a start for testing the resistance line, broken earlier, and its fixing as the support line around $140.20.

Photo: Roboforex / TradingView

The Ethereum creator Vitalik Buterin considers his platform as strong as never before. This is what he answered to a question on Twitter. Earlier, it was discussed that the Ethereum is losing its power and resources, and the users wondered if the system will ever recuperate its previous strength.

This is not the first time Buterin answers nothing specific to constructive critics. However, there is still hope for switching to the 2.0 ecosystem, where the Proof-of-Stake algorithm will be the base. This could breathe some fresh air into the Ethereum and attract new users to the platform.

Nomura Research Institute in partnership with Intelligence Unit formed a new product provided by the dollar and yen. At the base of the index, there are five cryptocurrencies, including the ETH. According to the company’s message, the index gives investors data for orientating on the institutional level. Later, it may support the status of cryptocurrencies.

It is supposed that the index will be rebalanced each month.

The crypto world reacts positively on what is happening in the real money sector when the investors started escaping risks after the activization of the news about the coronavirus spreading from China. At this moment, the BTC was on time to grow while for the ETH, the situation was not perfect. Its rate could grow more robustly if the token was more popular on the market.

Disclaimer: Any predictions contained herein are based on the authors’ 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.

Author: Dmitriy Gurkovskiy

Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.