- ETH/USD stays below $230 after a short-lived breakthrough.
- Ethereum developers demonstrate strong support for the platform.
Ethereum, the second largest coin by market value, is capped by a critical $230 handle, trading at $229 at the time of writing amid weak momentum. The coin is 1.6% higher on a day-on-day basis, but unchanged since the beginning of Tuesday. Ethereum’s current market value is $23.4B, while the average daily trading volume is registered at $1.47B, in line with long-term average figures.
What’s going on
While it’s been a tough year for Ethereum, the network is still the choice No.1 for dApps developers and smart contract-based projects. About 1,000 developers participated in the hackathon that took place in San Francisco from October 5 to October 7. Moreover, developers have been flocking to Ethereum platform despite price decrease with the number of users downloading ETH application for developers increased substantially by the end of the first quarter.
Many people blame Ethereum for the ICO market bubble and a lot of scams related to the initial coin offerings, but the revolutionary potential of the “World’s first decentralized computer” still fascinates the tech guys and motivate them to work on viable real0life use cases for Ethereum’s technology.
Ethereum’s technical picture
ETH/USD escaped from a short-term triangle pattern with bullish breakthrough; the price touched $232, but a strong selling interest located above critical resistance, pushed the coin back inside the range.
Currently, the coin is supported by the former resistance area $225. It is strengthened by a confluence of SMA levels (1-hour chart) and a short-term upside trendline from October 3 low at $214. Once this area is cleared, the sell-off may continue towards the above-said October 3 low and psychological $200.
The upside is capped by $230 handle and $238 (DMA50). This hurdle needs to be cleared to unlock the way towards the long-term resistance of $250.00.
ETH/USD, 1-hour chart
Get 24/7 Crypto updates in our social media channels: Give us a follow at FXStreet Crypto Trading Telegram channel