Ether Price Analysis: The Impact of Capacity Expansion Solutions

nRunaway Comment: This week the ether (ETH) fluctuated within a narrow range near the highest point. The current market capitalization of 43.89 billion US dollars, in the past 24 hours 1.26 billion US dollars trading volume. The number of holders rose 58% from the previous month. High trading volume and decentralized applications “CryptoKitties” is not a small relationship. The surge in transaction volume puts pressure on the network, so Ethereum must take steps to address the issue of network capacity in order to maintain its momentum of continued growth.n
nTranslation: Annie_Xun
This week the ETH fluctuated within a narrow range near its highest point. The current market capitalization of 43.89 billion US dollars, in the past 24 hours 1.26 billion US dollars trading volume. The number of holders rose 58% from the previous month.n

Recent daily trading volume hit a record high of 791,000, not a big deal with the “CryptoKitties” centering application. The $ 8,000,000 ETH was used to buy this “Reproduction Peas”.n

The surge in transaction volume led to delays and higher transaction costs. Currently transaction costs, 41 gwei for transactions less than 2 minutes and 10 gwei for transactions less than 60 minutes.n

Hash rate also broke new record, block bonus reduced from 5 ETH to 3 ETH, the difficulty is reduced. Block time increased from 23 seconds to 26 seconds, making the problem more complicated.n

At present, 870 decentralized applications are in different stages of development. Ethereum network must be expanded with the release of these applications at the same time, otherwise it will be their own success. CryptoKitties conducted a very good compression test on the current system, trading in excess of 20% of the total network traffic.n
Vitalik Buterin, Vlad Zamfir, and other Ethereum developers are currently working on multiple capacity expansion solutions. One of the biggest changes is the transition from proof of work (PoW) to proof of rights (PoS). After the agreement is adjusted to Casper, the ether will be locked in the smart contract, and the user can get interest. This process consumes less power and does not require mining software and hardware.n
More expansion includes the already implemented Raiden Network, which is similar to bitcoin’s Lighting Network and can support chained transactions. Plasma upgrades to be implemented in the future will address the expansion of smart contracts and the development of “Sharding” (shard) database partitions to solve the problem of increasing block size. Despite more work on capacity expansion, Vlad Zamfir said that Ethereum could not scale up and be confident of the future.n
Ethereum has always been the platform of choice for ICO. The SEC continues to be wary of obvious ICO scams, most recently PlexCorps. With the SEC accepting the technology, the number of securities fraud cases will increase, but “false promises of 13 times profits in a month” should be a warning for any participants.n
The volume of ETH transactions is driven by bitcoin (BTC), U.S. dollar and Korean dollar trading on the Poloniex, GDAX and Bithumb exchanges. The spot-to-spot Ether Exchange was established in October, but there is no complete volume data yet.n
The increase in GDAX’s trading volume and liquidity is due to the participation of retail and institutional investors through its parent company, Coinbase. As an early entrant to the U.S. market, Coinbase grew to be the number one choice for U.S. investors. Gemini, Bitstamp and Kraken also target U.S. clients, but their popularity is not that high and they are not retail-specific.n
Bitfinex no longer offers trading services to retail investors, although the exchange is still the dominant USDT volume. Although USDT trading is usually traded in USD, Bitfinex seems to be the market leader and USDT is the USD mimicking USD. The company behind the asset says one dollar corresponds to one USDT.n

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technical analysis n
Break through the rising triangular resistance for several months, the price stays in the support line. The active multifocal fractal stop loss level is currently $ 403.9. On the K chart, this lag indicator appears after two pull-ups or one pull-up. In the up trend, the price will not break the horizontal position of the bearish fractal.n

The Ichimoku Cloud on the daily chart shows all the charts are bullish. The price rebounded strongly on the daily benchmark (Kijun) (50% retracement) and is currently trading in a tight range.n
This period of volatility suggests a strong possibility of continued strength, a situation known as the buoyant flag, with an extension of 1,618 Fibonacci at the top and bottom respectively of $ 650 and $ 580.n

In the 4-hour K-chart, a head of balanced signals sent long buy signals and strong bullish sentiments. K chart closed above the cloud chart, late with the cloud chart above, there will be long to buy.n

The formation of the price range, cloud signal may not appear, but not lacking in kinetic energy. The risky bulls are likely to buy when the current peak is broken, at about $ 500.n
ETH / BTC exchange rate breakthrough key support points continue to decline. After breaking the descending triangle, the price enters the bearish harpoon line. The indicator presents a diagonal trend with three anchors. Harpoon line (red) represents the trend, while the top and bottom sections represent overbought or oversold ranges, respectively. The current price has exceeded these two intervals.n

Buying a long trade pair will continue the risky trade until the price breaks the bearish range. The current price is very close to the average of the downtrends.n
The recent bullish harmonics on the K-chart on the Ehr / BTC six-hour chart have broken the 1.272 Fibonacci extension at 0.025BTC. The lowest expectation of this harmonic is 0.0457BTC.n

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in conclusion n
CryptoKitties a great success, the media reported a large number of recent cryptocurrency is likely to release more decentralized applications. The popularity and popularity of the project is likely to be underestimated.n
Technical indicators analysis, the trend continued to move to 650 US dollars and 800 US dollars. ETH / BTC is also close to the bottom, but still remain in a strong decline in the interval.n

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