From our charts, Ethereum is reversing previous losses and week over week it’s up one percent though chances of further upsides exceeds that of sell pressure. While I remain upbeat, we must take caution and note that May 11 Ethereum highs at $750 is a strong resistance line. Technically-and considering our analysis, it is a liquidation line and an upper limit of May 11 upper limit short covering. If there is elevation in Ethereum bull market participation and prices thrust above this resistance, then we can ramp up longs in lower time frames.
From the News
It’s only three days before the much publicized Tron Virtual Machine (TVM) goes live and the Tron Foundation have their baits in Ethereum waters. Without wasting time, they are quick to act and are promising developers a wide array of benefits should they want to shift building environment and migrate to Tron.
Through a Tweet, Tron declared that they were creating this easy to use, seamless development platform where Ethereum DApp developers can easily change camps. Besides effortless migration, developers were told they shall easily secure a $100,000 loan. These loans are interest free in the first 18 months and serviced in the next 18 months either in USD or TRX when due. Furthermore, Tron guarantees a blockchain that would process 10,000 TPS unlike Ethereum which is struggling with speed especially when it peaks.
On the other side, there are still many questions that lingers when it comes to BTC-ETH relationship. One of the loudest questions we keep asking is when “Flappening” will happen? Of course, we all know that most alt coins derive value not only from BTC but from ETH especially if we consider that most ERC-20 tokens ride on Ethereum and have an obligation to pay network fees in ETH. This creates demand. Growth wise, the expansion in BTC valuation has been slow whilst Ethereum token projects with Proof of Concept register double digit gains as Bitcoin value stagnates below $9,000. In my view, Roger Ver assertions are likely to come to pass. In that case, Bitcoin dominance shall wane as Ethereum slowly but surely takes the mantle.
Ethereum (ETH) Technical Analysis
On the charts, week ending May 6 is significant in our analysis. While many foresaw a situation where prices would continue edging higher after that climactic price and surge in volumes, there was a contrarian price action because ETH sellers drove prices lower. Now, for better perspective we shall bring to light recent technical developments in the last two weeks.
First, notice that both candlesticks have long lower wicks signaling ETH buy pressure. Secondly, despite incessant bear pressure by week ending May 20, sellers didn’t break past Week ending May 6 lows at $620 which by the way was near our main support at $600. These candlestick characteristics alone reveal that recent moves were actually long coverings and for buyers to be truly in charge, we need to see strong up-thrusts complete with strong volumes past $750. $750 is the edge past this lower-time frame consolidation and resistance capping price moves.
Representing those long lower wick in the weekly chart are series of bulls in the daily chart. While May 12 did reject lower prices despite high volumes, it’s the follow through that cements our bullish sentiments. Realize that after May 12, prices are still moving horizontally but within May 11 bear candlestick meaning either we might see a bullish break out at $750 or short covering liquidations at that level. So, I would like to see price reacting at $750. In case there is a break above, I recommend buys with first targets at $850.
The post Farmers are Clogging the Ethereum Network: Ethereum (ETH) Technical Analysis (May 22, 2018) appeared first on NewsBTC.
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