Ethereum: USD/ETH (ETH=) ecosystem is strengthening in more ways than one

Ethereum: USD/ETH (ETH=) ecosystem is strengthening in more ways than one

Ethereum: USD/ETH (ETH=) ecosystem is strengthening in more ways than one

Ethereum: Greater Than The Sum …

The latest report from blockchain industry leaders ConsenSys has broken down the current state of the Ethereum network to provide more insight on its status. There has been no end of ETH bashing this year, from Bitcoin maximalists to leaders of rival platforms, all have taken a swipe at the world’s second largest crypto asset.

Most of this angst revolves around its stagnant market action in terms of price, and delays in rolling out updates to improve scalability. The price argument is really unjustified as all altcoins have been on the floor and there has been only one dominant digital asset this year.

The technical aspect however is currently being addressed and just like Rome, Ethereum cannot be built in a day. The report has highlighted some of the key numbers for the Ethereum ecosystem and includes live mainnet nodes which is currently over 8,930, unique addresses which tops 75 million, and average hash rate which is over 100 TH/s.

Total decentralized applications now number 2,600 with almost 17,000 daily users. As of June this year there were 1243 monthly active Ethereum developers which is way more than any rival platform can boast. The developer growth rate is 34% according to the report which is a good sign for the future of the platform.

The decentralized finance ecosystem is still embryonic but is clearly dominated by Ethereum. Over $1.5 million in ETH is now locked in MakerDAO smart contracts and Compound is rapidly growing as the second most popular DeFi platform for ETH.

Looking at Ethereum 2.0, there has been a successful recent test of network syncing between clients. The latest upgrades in the Serenity rollout are scheduled be deployed in the coming months and early into 2020 according to the roadmap.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 236.92.

The projected lower bound is: 197.29.

The projected closing price is: 217.11.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.3056. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 68.53. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 137.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 19 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 17 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -3.140 at 217.120. Volume was 53% below average (consolidating) and Bollinger Bands were 4% narrower than normal.

Open     High      Low     Close     Volume___
220.260 223.390 215.360 217.120 32,428
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 197.57 193.66 205.70
Volatility: 54 65 84
Volume: 67,877 63,530 61,558

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX ETH= is currently 5.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into ETH= (mildly bullish). Our trend forecasting oscillators are currently bullish on ETH= and have had this outlook for the last 7 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.