Ethereum analysis for 16/08/2018
Co-founder of Ethereum and the president of ConsenSys Inc., Joseph Lubin, admitted in an interview to Bloomberg that he is not worried about the decline in the cryptocurrency. He does not see in them a threat to the further development of the project.
Lubin does not make up for the last, huge ETH increases of any ideology last year. He considers them to be another bubble. However, he admits that each successive bull market is more spectacular. Lubin thinks that the peaks of past periods of the boom now look like “pimples”. Although the price increase alone does not impress him, he admits that a very good part of the whole phenomenon is a large jump in the level of activity of the cryptocurrency community. The group of people supporting ETH can be even twice as big as it was before the bubble today. He also emphasizes that “there is a strong correlation between the rise in prices and the increase of basic infrastructure in the ecosystem and the growth [of] the development of the ecosystem.”
Moreover, Lubin emphasizes above all that the price does not have a big impact on the project development itself. He claims that ETH is still on the “good road” and the bubble “is not so unexpected.” Of course, it can be assumed that as a co-creator of the second cryptocurrency, which is the capitalization, he says so only to calm the moods on the stock exchanges and stop the falls. By saying that the bubble is not and was not so “unexpected” also great confidence in the future of the project.
Will this be the case and Ethereum will have a bright future? Let’s take a look at the ETH/USD technical picture at the daily time frame chart. At present, the currency has already fallen to USD 288. It is the place on the chart when the price was recently (ie below USD 300), beginning of November 2017. On the other hand, ETH declines are part of the general downward trend in the cryptocurrency market, so they might last longer than anticipated.