Ethereum analysis for 31/07/2018
Vitalik Buterin, co-founder of Ethereum, said that payment cards powered by cryptocurrencies would contribute more to the adoption of virtual money on a large scale than the inflow of funds from institutions to ETFs, in the light of the last SEC decision. “I think there is too much emphasis on BTC, ETH or any ETFs, and too little pressure to make it easier for people to buy things from $ 5 to $ 100 through cards in small stores. This first option is good for pumping prices, but the latter option for actual adoption, “said Vitalik.
While the last proposal put forward by the Winklevoss brothers was rejected by the SEC again, there is another chance for a breakthrough in this matter. On August 10, the committee is to decide on the CBOE ETF. However, critics say that this factor will only increase Bitcoin’s price in the short term.
On the other hand, such price jumps are more damaging for cryptocurrencies because they additionally confirm the impression that they have variable and speculative character. For traders, there would be a chance to pump the coins again towards higher levels, some see a BTC return of up to $ 25,000 after the ETF starts.
Let’s now take a look at the Ethereum technical picture at the H4 time frame. Despite the recent breakout above the longer-term trend line, the bulls are too weak to rally higher and continue the uptrend. The price is now trading inside of a channel and did not manage to retrace event 38% of the previous swing down. The market conditions are starting to become oversold soon and the momentum is clearly weak and negative, with the indicator at the H4 time-frame pointing down. The next technical support is seen at the level of 436.40 and in a case of a breakout, the next support is seen at the level of 413.48. The nearest resistance is seen at the level of 481.44.