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Analysis of Ethereum Charts

Ethereum and Its Ecosystem

The Ethereum blockchain ecosystem acts as "fuel" for the projects of investors. The Ether has a built-in insurance policy to prevent it from collapsing. The red line (below which the price of Ethereum cannot fall) represents a significant investment that will always keep demand stable. As a result, the popularity and relevance of Ethereum's blockchain for large investors and the implementation of their own projects is the most essential component in the ecosystem's existence and development. Let's take a closer look at Ethereum to learn more.

The crypto community has continually contrasted Bitcoin number two — particularly, Ethereum — with the first cryptocurrency in the world since its inception. According to rating estimations, it is Bitcoin's closest competitor. It, on the other hand, serves an entirely distinct practical purpose. BTC is a decentralised virtual currency that is even closer to value storages like gold or precious stones and metals than traditional money. Ether, on the other hand, is a platform or core technology for the creation of cloud-like services based on the blockchain, as well as the realisation of projects using smart contracts.

The Ethereum price technical analysis reveals that, despite its youth, Ether has a tragic storey to tell. It's enough to recollect two hacking attacks that occurred within a year of each other: the first in 2016 and the second in 2017. However, as these difficulties attest, the Ethereum price research shows that this did not inhibit further growth of ETH, but rather led to its greater popularisation:

  • First and foremost, Ethereum drew the interest of potential users, particularly those who were unfamiliar with the crypto-industry (nothing promotes advertising like a scandal.)

  • Second, Ethereum Classic, a daughter cryptocurrency, was born as a result of this.

  • Third, the hacker invasion aided in the detection (and thus eradication) of the system's flaws, resulting in Ethereum becoming more secure. True, it was essential to suffer fewer reputational hits as a result of the transaction history rollback, which resulted in financial losses.

As a result, the Ethereum price technical analysis demonstrates that Ether is more than just a form of payment or a digital asset with a market value, as some crypto market speculators wrongly believe.

Analysis of the Ethereum Price

No one expected Ethereum to plummet this year, according to analysts. The main reason for this was the legal tightening of the ICO industry, which resulted in massive selling of Ether by scam ICOs and businesses that failed to meet their objectives. Because of the implemented lock-up function, which lasted up to one year, a fresh ICO required a reduced amount of Ether fees. Nonetheless, everyone's attention was drawn to the fact that the price of Ether would rise in an almost linear manner. Any cryptocurrency, however, is subject to volatility. A speculative user audience interested in such variations has an impact on all of this. They capture the lowest possible rates for buying and the highest possible rates for selling.

This speculative collection of people has banded together in order to damage the market via bulk dumping. This could have been done in order to cause exchange rate volatility. It's worth noting that a sizable proportion of users engage in provocative behaviours like these, which lower crypto rates, including Ether's.

According to the Ethereum price analysis, Ethereum slid $27 to $191 in recent trades, reversing most of the previous trading days' gains. This cryptocurrency's rate is still highly appealing for long-term investments, since it is around its year's low.

Indicators of an increase in the price of Ethereum

Despite the stifling effects of the overall depression, which is now spreading to the crypto business, there are good prospects for ETH's revival in terms of its behaviour. Above all, it is manifested as follows:

  • in the stable loyalty and trust of large investors and banks as well as the interest of exchanges, including new exchanges and trading pairs in playlists with the participation of the Ethereum

  • in the high operational capabilities of the ecosystem and the implementation of the Ethereum blockchain system in smart projects, which is more valuable than the exchange value of this asset

  • in a bunch of projects the Ethereum team is involved in (Plasma, Plasma Cash, Raiden, Casper, and zk-SNARKs implementation) that are solving scalability issues and the ability to use blockchain for any business or personal purpose

  • in a high degree of security, which was achieved after the identification of vulnerabilities in the process of hacker attacks

  • in the recognition of Ethereum and the trust of ordinary users and investors.

All of these markers, as we can see from our Ethereum research, offer a consistent demand for ETH. This causes the exchange rate to move in a positive direction.

Investing in Ethereum: What Are the Risks?

Any investment, regardless of the region where the money is provided, is dangerous, according to the Ethereum chart analysis. There are no assurances that any investment will be profitable. We can take the following conclusions based on a review of Ethereum's charts from the historical perspective of its existence, ignoring the ups and downs that come with any cryptocurrency:

  • The Ether becomes increasingly accurate and pervasive as it progresses through its life cycle.

  • Its rate is more appealing to both large and small dealers and speculators. On the one hand, it remains more or less stable as it grows and even when it declines through time. This up/down stability, on the other hand, results in a degree of predictability in its behaviour. This enables both types of participants to use these or other trading tactics to generate consistent revenue from trades.

  • Ethereum is working to address scalability difficulties, and one solution – Casper or PoS consensus – will lower Gas fees and limit Ether demand. It will make Ethereum more dependable and speedier, increasing demand. It's impossible to say which of these tendencies will be the most powerful.

  • External variables affecting the price of Ether, such as media excitement, fake news, and negative news about the crypto business, are less likely to effect its value.

Based on the Ethereum price research, we may conclude that Ethereum's nature shows an inflationary tendency, as the system has no constraints on the issuance of tokens. The community's trust and long-term stability, on the other hand, are inherent defences against inflation.

Technical Analysis of Ethereum Classic

The Ethereum Classic ecosystem has the potential to satisfy everyone: speculators (high volatility), investors (possible large returns), and miners (by the fact that they can leave collective farms, which are pools, and earn independently).

This crypto asset has a lot of potential based on its own principles. Based on the technical analysis of the Ethereum price, we compiled a list of its advantages, which includes:

  • Consistency: adhering to a commitment to decentralisation and financial democracy on a regular basis.

  • reliability: a high level of ecosystem protection that has been shown to be effective in fending off cyber-attacks and hacking. There hasn't been a single successful attempt to get around the security system.

  • demand: trading volume with this crypto asset was slightly higher than trading volume with the leading cryptocurrencies, such as Ethereum.

  • Stability: as a result of adhering to the decentralisation principle, which is at the core of the blockchain. The founders of ETC, as well as big investors, adhere to this philosophy.

  • universality: Through the mother platform, Ethereum, and its developments, the Ethereum Classic project has promise for any sphere of activity (smart contracts).

Without performing a split and by eliminating external manipulations in the blockchain, which is the cornerstone of decentralisation, the new Ethereum Classic ecosystem has kept all of Ethereum's advantages. Furthermore, the ETC project began so well that it was almost immediately included in a list of the top new projects, facilitating ETC's entry into trading on exchanges like as Bittrex and Kraken.

This is unsurprising given ETC's 250 percent gain since the beginning of the year. Competitors couldn't help but notice, and they extended their hands toward Ethereum Classic. When the most astute investors understood that the deal quickly converted ETH tokens into brand-new ETCs, they were rewarded handsomely. Over the course of a few days, they got a three- to four-fold surge in deposits. Take a look at the following Ethereum chart analysis:

The Ethereum Classic developers were fortunate, and not just because their project arrived on time. It was founded on the correct ideology, which we'll go through later. The market capitalization of Ethereum Classic is now at one billion dollars.

An ecosystem's ideology does not have a set structure; it is made up of individual concepts and values that influence developers. This can be stated in the following way:

  • Belief in decentralised platforms that should be open to everyone without limitation. They must also be protected from outside meddling and censorship.

  • Principles. The DAO debacle resulted from the abandonment of principled positions. Furthermore, the majority of the Ethereum Foundation replied ineptly to this issue, attempting to salvage DAO via another hard fork. In contrast to the opposition minority's opinion, this resulted in a further deformation of Ethereum's essential principles.

  • Mission. The Ethereum Classic ecosystem's purpose is to keep the Ethereum blockchain in its original state. Only original ideas have a chance for ongoing development, even if a small number of followers continue to implement them outside of the original platform.

What is the best place to buy Ethereum Classic?

Many exchanges offer Ether purchasing options, but the choice should be made independently of the popularity of a certain resource. Both the security of the service and the profitability of the purchase are critical variables. You must select exchanges that give services for exchanging one cryptocurrency for another, as well as servants for purchasing ETC tokens with regular currency. These criteria can also be used to determine whether you want to store your money in a mobile wallet or an online wallet, depending on your preferences.

Predictions for the Ethereum Price

Any cryptocurrency is vulnerable to unpredictably high volatility or fluctuations, which can result in the loss of up to half of its value in one direction or the other. Also exerting pressure is the rate of crypto assets in general, and the Ether in particular. External voltage, such as unfavourable occurrences in the crypto business, economics, and politics, as well as internal changes, such as system updates, can cause this (hard forks, changes in user audience, etc.).

According to Ethereum technical analysis, the price of an Ether is determined by a number of factors and conditions, including:

The quantity of tokens in circulation now and in the future. They currently number around 100 million, or 96 million to be exact. Although there is a natural rise, developers keep the circulation of tokens at roughly the same amount to keep inflation at bay. Ethereum employs a continuous inflation model, which means that there is no upper limit to supply. This is also a significant advantage in terms of long-term perspective, since it enables for price volatility to be limited.

Mostly using smart contracts on the Ethereum blockchain to update existing and new/developing applications. To begin with, they are automatically executed; all that is required is the execution of a smart programme. Second, the larger the demand for Ether currency, the more applications that use the ETH blockchain infrastructure. This indicates that the value of the asset is increasing. Third, in the not-too-distant future, the number of apps based on this ecosystem should increase by a factor of two or three, favouring ETH price growth.

The demand for Ethereum currency is growing in two directions in this ecosystem. This is due to the fact that it is both a crypto asset and a technology tool for developing your own decentralised smart contracts. The second path is the most valuable since it is the most appealing for investment. This is of particular importance to large business, which is unconcerned about an ecosystem's internal structure or the specific peculiarities of a particular blockchain since it requires ready-made solutions. These solutions are available in Ethereum's upgrades and hard forks.

Casper, Plasma, Plasma Cash, Raiden, and zk-SNARKs are all in the process of being implemented and tested. In compared to existing networks, these technologies will help Ethereum to become more scalable, adaptable, and secure. In terms of security, Ethereum will not be able to compete with Bitcoin because of its flexibility. That is, a security flaw can be created within a Smart Contract (rather than the blockchain itself), therefore it is difficult to assume that it will be faster than IOTA's tangle. However, Ethereum's scalability will be sufficient to replace a number of payment methods, applications, and even certain cloud providers.

Capitalization, which is a success indication for any cryptocurrency, is one of the most crucial determining aspects of Ethereum price. This assertion is correct since the degree of a token's good outcome is determined by the amount of money invested in the project, not by its price on the exchange.

If we follow this reasoning, we believe it is quite reasonable to create forecasts — not in terms of value parameters, but in terms of capitalization of criteria. The ETH is currently valued at $56.5 billion US dollars, but many analysts anticipate that during the next two years, the Ether's market capitalization could approach a hundred billion dollars. By gross standards, the price will rise to $2,000, with the possibility of going up to $5,000. Then we'll be able to make a forecast based on precise calculations.

on-exchange ethereum pricing

The price of Ethereum is perfectly in line with the present capitalisation dynamics.

The challenge with user consensus is the next factor that keeps Ethereum from reaching the top. To put it another way, creating your own Ethereum-based project is not difficult. It's a lot more difficult to get user buy-in for its implementation. Because of the inevitable variances that develop during implementation, this is a difficult undertaking. Instead of establishing multiple distinct initiatives, it would be a great idea to create a single cryptocurrency and set it up according to basic specifications. However, given the ferocious rivalry in the crypto business, developers are likely to have already devised a solution to the scaling and consensus issues.

When we look at the events that surrounded the rise of ETH, we can see the following:

In late February 2017, EEA (a business alliance) was formed for the development of initiatives on the Ethereum platform. The greatest financial institutions, including JP Morgan and UBS, as well as well-known firms such as Microsoft and Intel, have agreed to join this partnership. According to the alliance statement, businesses aren't interested in learning the fundamentals of blockchain; instead, they want ready-made solutions with open codes. We can see proof of Ether's quick rise if we look at the price charts after this incident.

Following the September 2017 hacker attack, the system was updated with the help of a hard fork in November. As a result, the attack's consequences were eradicated, as well as the ability to carry out such attacks in the future.

Side chains at the enterprise scale, such as JP Morgan's Quorum, the old R3 consortium Corda, the Loom network, or pure PoA Ethereum, are possible with Ethereum. The introduction of side chains for business purposes currently adds value, but Raiden (Ethereum sharding) will usher in a new financial/value Internet built on Ethereum's infrastructure.

Dependency on Bitcoin

Bitcoin remains the crypto industry's main engine. The project's accomplishments drew the attention and interest of the crypto community, not only to this coin, but also to other digital assets. This resulted in a quick increase in its rate, driving up the prices of the remaining cryptocurrencies. The collapse of Bitcoin, on the other hand, had a detrimental impact on the crypto business, as numerous crypto coins, including Ethereum, saw their prices plummet.

Simply put, as Bitcoin prices rise, so will the price of Ethereum, and as Bitcoin prices fall, so will the price of Ether. Ethereum has its own capacity for periodicity in its recovery, stabilisation, and depreciation phases, despite being linked to Bitcoin through hidden connections.

Summary The demand for virtual money is increasing all the time, and the possibilities for its use are already being debated by world leaders. Cryptocurrencies, unlike fiat money, have extremely high growth rates, and even a single investment made against the backdrop of a dramatic increase in the exchange rate can result in massive rewards for the owner.

Ether comes in second position in search engine rankings for cryptocurrency queries, close after Bitcoin. The desire to earn money without making huge investments or obtaining economic expertise, as well as the overall simplicity of the method, are driving this interest. Anyone can spend a few hundred dollars during a rapid decline in the currency, or just buy as much Ether as possible and wait for a good course of sale if they so wish.

Many analysts expect that the price of Ethereum will continue to climb in the future years, which implies that market participants will have more opportunities to make money. Its price has fluctuated dramatically since October 14, as shown in this graph.

Traders profit handsomely from cryptocurrency sales on exchange services. The currency's rapid ups and downs could be attributed to activity in the primary capital custodians' markets. A significant number of asset sales will unavoidably result in a decline in value, although this can be swiftly stabilised and followed by further increase.

At the moment, Ethereum is concentrating on improving its key functionality, such as token production and the development of decentralised applications. After doing a thorough Ethereum study, we can see that the price chart will be crucial for anyone looking to invest in the Ether market. Small investments in cryptocurrency systems few years ago yielded big returns. Blockchain technologies are being introduced to many facets of our lives, such as payment systems, because to their novelty and rapid development. This announcement generates interest in virtual-fund services through large-scale campaigns, which might potentially take over the entire industry, as Bitcoin did.

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