A clear divergence exists between the price of Ethereum and Fundamental Developments. It is true that governments are bullish on blockchain technology. In fact, the presence of some forward-thinking agencies in progressive states like Austria and Singapore which at some point utilizes the DLT technology, has been noticed.
Presently, people familiar with the developments in the state claim that Ukraine’s Economic Development and Trade Ministry is keen about legalizing cryptocurrencies and other similar activities such as ICOs.
Ethereum (ETH) Price Today – BTC / USD
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Austria, to auction off more than $1.3 Billion in government bonds, will be making use of the Ethereum blockchain. To achieve this, the state is set to introduce and implement favourable policy that will promote at the legislative level, blockchain development and cryptocurrency activities.
This implementation strategy that should take place in two phases will be concluded by 2022, after then Ukraine will eliminate uncertainty, giving blockchain businesses the opportunity to implement their objectives under “understandable conditions”. This progress seems to confirm a Facebook post made by Alexei Mushak making known their intention to formulate fair laws that spur mass adoption while keeping in check criminal activities.
If this happens, then it confirms comments made by Joseph Lubin about digital assets not being on the edge. Joseph, who is the founder of ConsenSys as well as the co-founder of Ethereum in an interview with CNBC, remained upbeat about Ethereum’s potential and similar distributed ledger technologies. He points to a surge in blockchain projects and cyclic “boom and bust” which tempers the market.
Price Analysis: Ethereum (ETH/USD)
ETH/USD despite upbeat projection, is fading the herd as prices dip below psychological tags. In the last week and day, the price of Ethereum went down by 3.5% and 1.1% respectively.
Bearish Trend
ETH/USD broke lower after two weeks of horizontal consolidation. But, this seems to have been the path of least resistance. A simple trend line connecting recent highs is negative sloping. Asides this, other bear pointers can be seen. If we recall, in past two months, Aug 7-8, Sep 5 and Oct 11 bars stand out. All have strong volumes and wide trading ranges leading to more draw downs.
Decreasing Volumes
Although sellers seem to be in control, volumes of 15th October are very high (967k), which is even higher than those of 11th Oct (657). Average volumes stood at around 55K between 16th October to 29th, only rising yesterday to 172k as ETH/USD print lower.
Bear Breakout Pattern
In Technical terms, the events of September’s first two weeks explains the price action seen recently. On 5th of September, in a bear break out pattern, ETH/USD broke below $250. Since then ETH/USD prices have been oscillating within the tight $120 range between $250 caps and $160 support. While traders remain upbeat, bulls could only be confirmed if there were solid moves above $250 previous support now resistance.
Conclusion
ETH/USD is trending at a precarious position in a market that is largely ranging between $250 and $160. There are low Volumes and candlestick formation point lower. Due to this reason, as we wait for solid, high volume losses below $190 confirming bears seen on 11th October, it is advisable that a neutral stand is taken. From there, traders can take small position sells.
