The optimism around institutional involvement and price reversal is yet to filter through. In fact, at the moment, sell pressure though waning, influence price. ETH is down roughly one percent in the last week but up the same margin in the last day. Nonetheless we retain a neutral outlook until after there are clean thrusts above $250 or $300.
Latest Ethereum News
In a recent Medium article, Vlad Zamfir–an Ethereum developer, elucidated his vision on the hallmarks of a perfect blockchain and what the community should try to avoid to avoid potential corruption in a chain that is specifically designed to act as a public utility. Topping the list is prospect of capturing and censoring blockchain governance and later creating autonomy out of it.
Taking his stand against creation of an autonomous blockchain, Zamfir said “ethics and decentralization are independent” but the path towards decentralization is dangerous. This he says stems from the possibility of treating blockchain governance as a social obligation.
He further asserted his view saying that any form of blockchain governance capture shall erode the purpose of blockchain creation since it will take centralized efforts to revers the harm caused from decentralized approaches.
An autonomous blockchain according to Vlad will automatically lead to internet censorship which the community could end up regretting should it be allowed to proliferate. Such developments lead to “weaponization of autonomous blockchains”.
To avert such, he proposes a system where the overall blockchain governance is executed under global cooperation with applicable laws ensuring ethics and neutralization of possible governance centralization.
Ethereum (ETH) Price Analysis
ETH Weekly Chart
All things constant, ETH prices are stable. So stable are they that prices have been moving within a narrow $40 range in the last two weeks and shaving less than one percent in the last week. Of course, as it is, the community is expectant of price surges. And for good reasons.
First, there is a clear rejection of lower lows thanks to volume spikes of week ending Sep 23 lifting price with it. Secondly, the follow through has been positive for bulls as they continue to print higher highs in the last two weeks.
Needless to say, traders need to see strong buy or sell signals before loading up. As we mentioned before, bulls would be in charge once there are rallies above $250 and $300. Before then, there is a risk of prices sliding towards $200 because of the overbearing week ending Sep 9 bear bar.
ETH Daily Chart
Back to the daily chart and the trajectory is clear. ETH bulls have been successful in maintaining an upward trajectory in the last month but are still trading below $250.
When we paste a Fibonacci retracement between last month’s high low, then we the 61.8 percent retracement level coincides with our immediate resistance and bull trigger at $250.
That’s how important that price level is in our analysis. To reiterate, we shall take a neutral position. However, any bear moves below the minor support trend line of the last month could usher in the next wave of sell pressure aiming for $150, and lower.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.