Ethereum [ETH] Price Analysis: Bulls Are Sold Out But Is The $ 500 Valid?
Done: Ethereum is the most active smart trading platform and a certified Launchpad for most DeFi dApps.
The truth is, if an open finance protocol wants to get some kind of traction, the best way to boost participation and get maximum capital is by launching directly from Ethereum.
The tools, infrastructure and activity on Ethereum are unmatched
Ethereum is a well-developed ecosystem, with a completely robust infrastructure with superior tools, and well, yes, developers. This is imperative considering that Ethereum is an open network, which means that the community maintains its code.
Compared to even the most valuable network, Bitcoin, Ethereum developer activity is denser. It is even more emphatic now before the planned Eth2 migration, where the Beacon Chain mainnet will allow coin holders to stake their coins.
Smart hiring peaks
To measure how active Ethereum is, you have to look at the amount of smart contracts implemented.
As the trackers indicate, more than 300 smart contracts are launched every other day on the pioneer network. Consequently, this has pushed Ethereum's smart trading activity to an all-time high, pointing to increased functionality, ecstatic development, and perhaps traders are positioning themselves for a further moon jump if Beacon's mainnet It comes at a tentative point in November as speculated.
It seems that participants are unfazed by the high average transaction fees.
This is due to the priority of Vitalik and the rest of the co-founders to secure and decentralize the network on scalability.
The problem of high fees, as reiterated, will only be solved by switching to a new scalable network or migrating intensive network activities to Layer 2 solutions like ZK-Rollups; or temporarily scaling Ethereum through other scalable networks like Matic.
Ethereum price analysis
He Ethereum price is over. While traders are bullish in expecting a moon shot due to fundamental factors, the bears are currently in charge, slashing revenue from the past few days.
In the past 24 hours, the price of Ethereum is down three percent against the dollar and BTC. However, from a global approach, the ETH bulls are still in charge, adding five percent in the last trading week against the USD.
From the daily chart, the ETH price is still consolidating below the average BB, but is trending above $ 360. These are bullish blinks.
Still, what is needed for the continuation of the buy trend and a retracement to the trend considering the encouraging reaction from the 61.8 percent Fibonacci retracement level of the June-September 2020 rally is a complete reversal of losses. September 5.
From an effort versus outcome perspective, the bears are in charge unless there is a high closing volume above the average BB and $ 400. This will open doors for $ 480.
If prices fall below $ 360 and $ 300, the odds of a more pronounced correction will only increase.
Graphic courtesy of Trading View
Disclaimer: Points of view and opinions expressed are those of the author. This is not investment advice. Do your research.
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