Investors Await Updates on Ethereum Protocol, at Devcon3

Investors Await Updates on Ethereum Protocol, at Devcon3

 
Barring a few days in the past two months, the ETHUSD pair had remained range bound between $280 and $300. The ban on Bitcoin exchanges and ICO’s (Initial Coil Offerings) in China were largely responsible for the range bound movement. Further, investors’ interest towards Ethereum declined in South Korea, a major crypto currency market, after crypto currencies such as Z cash and Qtum rose to prominence. However, as discussed underneath, the positive developments related to Ethereum are expected to propel the ETHUSD pair in the week ahead.

The popularity of Ethereum is rising in non-traditional crypto currency markets such as the US. Last week, the US Ethereum market pipped South Korea to become the largest Ethereum market with a 33% market share. As crypto currency investors may be well aware off, exchanges in South Korea dominates the crypto currency industry. Even though the US has pushed South Korea to the second place, still, the demand for Ethereum continues to rise in the South Asian nation. The success of the Byzantium hard fork has also contributed to the popularity of the Ethereum in the US market.

JP Vergne, a professor at Ivey Business School, said the developer activity is one of the crucial indicators for estimating the price trend of crypto currencies. The activity of Ethereum community has been commendable in 2017. Innovations such as second-layer Plasma solutions have provided a suitable platform for developing decentralized applications. The Enterprise Ethereum Alliance, which includes institutions such as Sberbank of Russia, have started creating applications around the Ethereum network. That has increased the prospects of an increase in the price of the Ethereum coin, whose market capitalization increased from a mere $72 million to $28 billion in 2017. The platform created by Sber bank is expected to influence the growth in the corporate sector.

Later this week, crypto currency developers across the world are expected to attend Devcon, an annual event held in Cancun-Mexico, to discuss the developments in the crypto currency arena. Investors would be closely watching the event for updates on Ethereum protocol. The four-day Devcon3 event, which was sold out in July, features 128 sessions in total. Several top Ethereum platform technologists, including the creator Vitalik Buterin, Cornell University professor Emin Gun Sirer, and Ethereum Name Service (ENS) developer Nick Johnson are scheduled to address the top issues faced by the network. All the facts discussed above have stirred interest in the Ethereum coin again.

In the US, there is severe criticism and opposition to some of the changes that are planned to be brought about through the tax reform. The National Association of Home Builders has vowed to defeat the tax reform as it is expected to affect the use of home mortgage deductions. Likewise, changes to individual retirement savings are facing increasing criticism from the opposition. Thus, concerns over a possible delay in the tax overhaul has turned the US dollar weak against the Ethereum.

The ETHUSD pair is trading above the strong support level of 294. Further, the stochastic oscillator has started rising from near the oversold region. Thus, we forecast a continuation of the current rally. The next major resistance for the crypto currency is at 346.

ETHUSD - Technical Analysis - 2nd November 2017

In order to benefit from the impending rally, we are considering buying a call option from a binary broker who is willing to offer a weekly expiry period. Provided we find a suitable contract, the investment will be made when the ETHUSD pair trades near $297 in any of the major crypto currency exchanges such as Bithumb, Coinone, Bittrex, etc.

Disclaimer: The trading analysis offered here is our opinion. It is not provided as trading advice, merely an indication of our trading plan. We cannot guarantee success and we encourage traders to incorporate a strong money management strategy to limit losses. Please use this article as part of your own research before formulating strategies prior to trading.


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