technical analysis ethereum

Ethereum Prefered For dApps, ETH Prices and User Activity Correlate

Avatar Dalmas Ngetich 3 months ago
  • Ethereum (ETH) prices unchanged
  • Developers prefer Ethereum as the smart contracting space heats up

A latest dApp research report backs Ethereum. Despite limitations, Ethereum is a top-choice for developers. Meanwhile, prices are stable. Because of June 26-27 candlestick arrangement, there is a chance of ETH prices printing lower in days ahead.

Ethereum Price Analysis

Fundamentals

Tokenization is possible because of smart contracts. Ethereum showed the way, and now the space is congested. With various platforms promising ultra-high throughput sometimes in the tune of millions, Ethereum’s position could be under threat according to neutrals.

However, convincing as it is, that is not the case. A raft of changes and code enhancement mean the platform is a top choice for many developers. Compared to EOS and Tron, for example, Ethereum is more active from the development front that even the world’s most valuable network in Bitcoin. That is despite existing challenges like scalability concerns.

Regardless of criticism, Ethereum is better decentralized than Tron and EOS, and chances are a new derivative product could be given the thumbs up by the CFTC.

Endorsing Ethereum, a new Dapp.com research report reads:

“484 new dApps were added to the market this quarter, and Ethereum is still the first choice for developers, followed by TRON and EOS. Newly launched blockchains like TomoChain and IOST are quickly expanding, but the first tier blockchains have already gone way ahead. User activeness has a strong correlation with ETH price – the higher the price, the more Ethereum dApp users. More token holders have also been converted to dApp users, as the price has increased since mid-May 2019.”

Candlestick Arrangement

Ethereum ETH

Presently, ETH is stabilizing but trending below $300. Technically, the level is critical as far as trend maintenance is concerned. Moving on, it is imperative that ETH bulls reject lower lows.

That means reversing losses of June 27. Preferably, behind this upswing must be a buildup of high trading volumes as buyers snap back to trend. For now-and, as prices consolidate under bear shadows of June 27, aggressive traders can ramp up as long as prices are above May high.

Note that ETH is trading within a bullish breakout pattern against the USD while the $230-$250 zone acts as support.  Therefore, any retest of this level is an opportunity for risk-off traders to ramp up while aiming at $350 and $400.

Conversely, if prices crumble, sliding below $230, there is a high likelihood that ETH could retest $230 and even $190.

Technical Indicators

Anchoring this trade plan is June 26 candlestick. With high volumes as indicators, any surge above $350 or meltdown below $230 ought to be with high participation exceeding 554k of June 26.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

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