Strong Fundamentals Plus Record Trading Volumes Sees Ethereum Still Bullish

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Ethereum Bullish

Not surprisingly, the mighty Bitcoin has been receiving all the attention lately as it has doubled in price since early April. The considerable move has shifted total market capitalization over $250 billion for the 1st time in 10 months. Ethereum has been a little slow to catch up but it has finally done this and is now approaching a critical point. Which way will ETH go?

Ethereum’s Bull Pennant

ETH has operated in a steady uptrend for the past four months, over doubling from a February low of just over $100 to its current price. It did stall at around $170 for the best portion of April, however, as Bitcoin roared away with all the gains, improving its dominance to a 17 month high of 60 percent.

For the last ten days or so Ethereum has at long last lifted off breaking through that resistance at $180 and climbing to a 2019 high of $270 on Thursday last week. Daily volume spike to an all-time high of just about $19 billion and ETH trade was booming.

Last week Coinbase captured the highest weekly Ethereum trading volume since 2017. In the exchanges’s two most well-liked ETH markets (ETH/BTC and ETH/USD) a combined total of 3,675,570 units of ETH was traded from May 13 to 19, which at current market prices around $250 has a notional value of over $918 million; its highest total in a week ever since mid-December 2017.

Since last week ETH has continued to be over $230 and has pressed back up to $250 where it has been trading for the last couple of days. The difference this time is that Ethereum is not being used for ICO investment but being built up by investors. Long time crypto trader ‘CryptoFibonacci’ has been taking a look at the charts noticing the formation of a bull pennant;

To follow previous patterns, a break out normally occurs when the end of this triangle is reached and taking a look at the longer term trend, it is more than likely to be to the upside. However, the bigger picture shows ETH at the top of a rising wedge which may indicate some heavy resistance at this level.

What About Fundamentals?

Competing projects such as EOS and Tron, along with Bitcoin maximalists, like to regularly bash Ethereum. In the opposing corner are altcoin aficionados like ‘Ambroid’ who recently updated a tweet pointing out;

“Updating thread after 5 months. A total of 187623 $ETH Token Contracts found. That’s an 18% increase from 158265. Slowing down in %, but the absolute numbers are still massive. Uncontested leader.”

The issue of scalability has been a thorn in the Ethereum network side for some time, however that will finally be put to bed in the Serenity upgrade which will bring in sharding, proof of stake, and of course a new virtual machine. According to the roadmap, the phased update will commence later this year.

It would be highly unlikely for Ethereum prices to remain this low for long, especially when you consider all the innovations and learn what is in store for the project technically.

Image from Shutterstock

The post Ethereum Still Bullish With Record Trading Volumes and Solid Fundamentals appeared first on NewsBTC.

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