- Ethereum (ETH) up 5.3 percent
- Monthly active developers in Ethereum high at 216
On average there are 216 monthly active developers working on improving Ethereum (ETH) better. That is bullish now that the aim is to transition from Proof-of-Work to a staking system in Serenity. In the long term, ETH is bullish. Meanwhile, prices must close above $190 in a breakout trade.
Ethereum Price Analysis
The crypto space is vibrant and back to green. Even so, we should note that there is a degree of decoupling between Bitcoin, the market leader and altcoins, including Ethereum. Note that despite Bitcoin (BTC) surging, Ethereum (ETH) prices are not responding as per traders’ expectations. In the last day, ETH is down 0.8 percent, struggling to breach $170 and up a mere 5.3 percent from last week’s close.
All the same, it is the rate of development that is interesting, hinting of bulls. Ethereum (ETH) is a trigger of innovation thanks to their smart contracting capabilities. However, competitors are catching up. Regardless, the number of monthly active users surpasses those contributing to Bitcoin and Tron or EOS, projects that the Chinese CCID ranks higher and lauded for their lightning speeds.
Although many may attribute this to the release of Ethereum 2.0 TestNet for the Beacon blockchain by Prysmatic Labs, that has been the norm. Developers are flocking to the network despite the requirement of coding using Solidity and shunning others.
It may be the challenge, but if Ethereum is to be 3.0 creating another layer on top of the blockchain (web 2.0) and Internet (Web 1.0) as the network upgrades from the current “investment” state made possible by web 2.0, then there must be developers contributing to Ethereum repositories. That’s what is happening, and this is bullish for Ethereum (ETH) in the long term.
Fundamentals are “very” bullish, and as Ethereum development pick momentum, it is likely that prices will follow suit. However, that is all dependent on whether ETH bulls will clear immediate resistances at $190, marking Apr-2019 highs. If not, then we expect the current consolidation to continue.
Presently, prices are consolidating within a $20 range inside May-6 high-low despite the reaction at the 78.6 percent Fibonacci retracement level off Apr-2-8 high low. Like in our ETH/USD trade plan, there is an opportunity for buyers to step up and load up on dips.
However, for risk-averse hodlers trading for value, a better signal will be to initiate longs once prices rally above $190 complete with above average volumes.
Accompanying this accumulation is an expansion of participation. With averages at 108k, volumes are up from Apr-25’s 99k meaning bulls are in control. Even so, that will only be true if there is a surge above $190 with a sharp increment in volumes exceeding 160k confirming buyers of Apr-2-3.
Chart courtesy of Trading View