This “Golden Pocket” Could Wipeout Ethereum’s Momentum
- Ethereum is rapidly approaching its local highs as bulls begin garnering significant strength
- There is one “golden pocket” resistance level that could spark a major selloff if ETH is rejected here
- Some top traders are still noting that they expect this uptrend to extend significantly further
The intense uptrend Ethereum incurred yesterday was able to further extend overnight, with the cryptocurrency pushing will into the mid-$180 region as its buyers make a bid at revisiting its local highs at $190.
The cryptocurrency does appear to have some significant underlying strength, as it has been consistently outperforming Bitcoin and many other major altcoins throughout the past several days.
There are a few key technical resistance levels that are fast approaching, however, and a firm rejection at any of these levels could be dire.
At the time of writing, Ethereum is trading up over 3.3% at its current price of $185, marking a notable climb from daily lows of $175 that were set yesterday right before the crypto incurred another leg up that led it into the $180 region.
After pushing to highs of $187 overnight, the crypto faced a harsh rejection here that ultimately led it to decline to lows of $181 – from which point it has been able to recover.
It now appears that ETH may continue extending this uptrend until it reaches the price region existing right around $220 – as one analyst notes that this is its key near-term horizontal resistance region.
“ETH: Opened a swing position on Ethereum. Looking to add size on pullbacks,” the analyst noted while pointing to the support and resistance levels marked on the below chart.
It doesn’t appear that Ethereum bulls are in the clear yet, however, as another popular pseudonymous trader explained in a recent tweet that ETH is trading just above a key descending trendline that could offer some insights into its trend.
Although the crypto has been holding above this trendline, the same trader also notes that a rejection at the crypto’s “golden pocket” resistance at its .618 fib level could wipeout ETH’s momentum and lead it lower.
“ETH: If market strength continues, here is my plan: Watch green trendline for general shift in the market. Upon break/obvious close outside/below, I short pullbacks. OR Watch for spike/rejection at golden pocket .618/.65 then short, while the obvious short (X) gets wiped out,” he noted.
Featured image from Unsplash.
Zoom reveals new crypto app on Ethereum blockchain
Zoom, a US communications technology company, has listed a new application that will enable cryptocurrency payments among users. The feature is coming at a time where the industry sees a high demand for online conferences due to lockdowns.
Dubbed SmartSessions, the blockchain app currently supports payments with Ether (ETH), and will equally allow the organizers to monetize and earn from their respective video conferences. Following Zoom’s global presence, this move will probably add to the adoption of cryptocurrency.
Notably, enabling users to earn in cryptocurrencies removes the need for any banking fee, including restrictions. More especially, organizers and users can be able to transfer money quickly, without worrying about currency difference.
The crypto app also offers organizers an option to create referral programs, which will enable people to earn rewards as they share links to upcoming online conferences on the platform.
As explained, the crypto app will also allow the direct purchase of digital currency using a credit card, which will also support about 17 fiat currencies. Meanwhile, all the payment options, including current billing, will be streamlined to an Ethereum smart contract.
Developed by 2key.network, the main objective for the new application is purported at meeting the rapidly growing demand for virtual conferences. This includes the crypto payment function, which aims at improving Zoom’s payment management options.
The new for online conferencing is standing out as a better avenue for individuals as well as businesses to converge while observing the social distancing order placed by several governments in order to curtail the spread of the coronavirus.
With the new crypto app, it is assumed that Zoom could be gaining a larger share of the now-trending market. The company is listed on NASDAQ and has about $1.2 billion in assets. It is also expected that cryptocurrencies, especially Ether, will react positively to the new development.
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Bulls Waiting for ETH Price Rise as Ethereum 2.0 Launch Gets Closer
Ethereum bulls have continued to outperform themselves in April in spite of the coronavirus-related volatility. Ethereum (ETH) price proves that it has the potential to rise to $200 despite retreat to $170 support.
One of the teams that helped develop Ethereum, the second strongest cryptocurrency, Prysmatic Labs introduced the ETH 2.0 Topaz test network as a substitution for the preceding Sapphire test network and finally managed to deliver it successfully. Right now, the Ethereum network can handle just 15 transactions per second (TpS), which represents the pretty small number. The team, however, decided to change this with Ethereum 2.0. And it’s clear that the closer these updates get, the more talks about Ethereum (ETH) price are there.
However, let us try to explain why has the whole thing only runs on a test network. A test network is an environment that is meant for test purposes only. It allows application developers to experiment without destroying the network.
Especially with a “working product” like Ethereum, a changeover is very complex and has to be done with great care.
ETH 2.0 would, as it is planned, remove all possible problems that afflict the Ethereum network. This includes relatively limited scalability and security. Also, it will apply the possibility to stack Ether (ETH) in order to validate transactions on the network and earn extra tokens as payment.
Also, It should be mentioned that Ethereum 2.0 will be faster and more vigorous because it supports sharding. Sharding, just for the reminder, is an approach that divides the processes in the Ethereum network into smaller nodes so that it can handle more transactions.
Analysts say that Ethereum 2.0 is expected to have a categorically positive effect on the value of its native cryptocurrency.
Also, there is an idea that Ether should be burned when transactions take place, which would only intensify the supply-demand dynamics in favor of bulls.
Meanwhile, the number of smart contracts deployed that opened on the Ethereum network reached 1,971,632 in March, hitting a new all-time high and marking a 75% increase from the previous month.
Online analytics platform, Dune Analytics, said the number of contracts deployed on Ethereum during the last year with the average only registering around 670,000 contracts per month.
However, even though the number of smart contracts has increased, there wasn’t any apparent rise in the number of transactions as a result. That might actually suggest that numerous contracts were either not properly handled, or either didn’t translate to an increase in end-user engagement.
Ethereum co-founder Vitalik Buterin commented:
“Note that this is likely not quite yet ‘THE Multiclient Testnet™,’ as we are likely going to do one or two restarts soon to have more chances to test the genesis mechanism.”
At the time of writing, Ethereum (ETH) price was climbing by 3.74% and was $184.01. However, that means it rose above the $180 resistance and analysts think it is likely to rise even more towards the $195 and $200 levels pretty much soon.
Be it as it may, this also means that the bulls are now in control and they are likely aiming a test of the $200 level. However, if we look at the charts we can see there was a break above a major bearish trend line with resistance near $177 on the hourly chart of ETH/USD.
It is possible that the pair could even go lower, but fall remains supported near $178 and the 100 hourly simple moving average.
Ethereum should definitely surpass the 100 hourly simple moving average for a fresh rally against the US Dollar. ETH price stood above the $170 level and it did break the 100 hourly SMA.
The bulls again gained control and they were able to clear a couple of important hurdles near the $175 and $180 levels.
The price also went above the 61.8% Fib retracement level of the main drop from the $190 swing high to $165 low.
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