Ethereum Price Analysis–Jan 8
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Finally, because of the tireless efforts of developers at the Ethereum Foundation and Matter Incorporation, it has been demonstrated that a SNARKs powered Plasma—an off-chain, layer two solutions and one of the many scalability proposals—part of EIP, can be actualized. After months of experimentation, the team has rolled out Ignis Fire.
Already, this is a major milestone and a step towards maintaining Ethereum’s competitive edge months after last year’s Cryptokitties drama which saw GAS prices spike and throughput dipping after a period of increased interest from developers and entrepreneurs racing to crowdfund on the platform.
According to Matter Inc, the Ignis Fire adheres to Vitalik’s on-chain data approach. While it can be revolutionary offering a glimpse of what can happen in a future dominated by micro-transactions settled instantaneously without the risk of bloating the network, there are trade-offs that violate the very meaning of plasma.
It always has been a challenge and since every user must reconstruct the Merkle State, 9 bytes of data must be posted to the EVM from every transaction to guarantee reconstruction. Nevertheless, the cost of a transaction is drastically reduced and throughput is increased to at-most 500 TPS with output capped by on-chain data availability.
Ethereum (ETH) Price Analysis
At spot prices, ETH is up 12.5 percent in the last week and trading within a clear bear breakout pattern with liquidation at $170. Needless to say, ETH is technically bearish and as long as prices are held below $170—previous support now resistance, sellers are in firm control and we might even have a re-test printing out in coming days. On the flip side, gains above $170 would open the sluices for $250 and finally $400 by end of Q2 2019.
There are several pointers that prices will expand, cementing ETH’s position at second. Obviously, technical consideration takes center stage and as the community expects a soft upgrade to Constantinople in the next eight days, Ethereum’s road map is being executed as laid out. It is definitely a vote of confidence. Besides, rolling out of scalability solutions aside from ZK-SNARKs and Sharding points to global, dedicated contributions reaffirming Ethereum as one of the most active platforms.
Technically, buyers have an upper hand in this time frame but on a top-down approach, sellers are firmly in charge and even after two months, bulls are yet to reverse Nov losses. If bulls are in control then we must see some rapid gains above $170 before steps are taken to recoup Nov 2018 losses. That will still put sellers in control from an effort versus result perspective. In the coming days, traders should be cautious only trading breakouts accompanied by above-average trading volumes above $170.
Assuming there are gains above $170, our ETH/USD trade plan will be as follows:
Target: $250, $300
All Charts Courtesy of Trading View–BitFinex
Disclaimer: Opinions are those of the author. Do your Research.Leave a comment