Price analysis: Ethereum hovers around 100 DMA
China is still the center of attention for the crypto community following positive comments from President Xi. Joseph Lubin, Ethereum co-founder and founder of Consensys, said he would like to see more participation from China in the Ethereum ecosystem.
“I would love to help China get expertise in Ethereum technology. [...] The main idea is that Ethereum is the strongest of the blockchain technologies and it’s a very positive virus to implant in people’s minds,” said Lubin in an interview with Forbes.
Moreover, he added that China’s Central Bank Digital Currency (CBDC) should allow interoperability with public permissionless blockchains, including Ethereum.
“I assume it is going to be exactly what Chinese leadership thinks is most beneficial to Chinese leadership. Hopefully that’s also open and we can interoperate with it, but I don’t know,” said Lubin.
Lubin also believes that China will use its cryptocurrency to try to undermine the US dollar’s status in the world’s financial ecosystem.
“There are lots of reasons why American influence is shrinking and will probably continue to shrink. That may not be a bad thing but in some ways, it’ll be a bad thing. China’s particular cryptocurrency I don’t think is a major factor.”
In the meantime, Standard Chartered, a major international banking group, announced it has joined the Enterprise Ethereum Alliance (EEA). The plan is to join forces with industry leaders in pursuit of Ethereum-based enterprise technology best practices, open standards, and open-source reference architectures.
“We are excited to be a part of the EEA and look forward to opportunities where we can collaborate with other leading industry players to deepen blockchain research and application in the banking sector,” said Dr Michael Gorriz, Group Chief Information Officer at Standard Chartered.
The EEA is a member-led industry organization whose objective is to increase and improve the use of Ethereum blockchain technology as an open-standard, to ultimately empower all enterprises.
Elsewhere, Vitalik Buterin spoke on the Proof-of-Work v. Proof-of-Stake debate, sharing his two cents.
“I do think that proof of stake does better than proof of work with lower security budgets but even with proof of stake like I’m not confident that Ethereum proof a stake with zero issuance is something that it is guaranteed to be able to survive,” said Butertin.
Unlike Bitcoin, which has moved lower in the past couple of days, Ethereum has been trading within a tight trading range. For instance, Ethereum has ranged between $180 and $195 in the previous seven days. The sideways consolidation usually precedes a bigger move, hence traders should expect Ethereum to burst in one of the two directions soon.
On the upside, the bulls are targeting the 200 DMA which trades just below the $215 handle. Above this level we have a $225 horizontal resistance. However, we must first see whether the bulls have enough power to move above the mini descending trend line.
On the downside, the price action is currently testing the intra-day support, in the context of the 100 DMA, at $186.87. A daily close above this level will turn the 100 DMA from support to resistance. For bears, the level around the $150 mark continues to be the major prize.