Ethereum (ETH) is well on track to proceed with its ongoing rally despite concerns over Plasma which were recently addressed by developers.
At the annual Ethereum [ETH] developer’s conference Devcon4 held in Prague from 30th October to 2nd November, Vitalik Buterin, co-founder of Ethereum, spoke about how the Ethereum 2.0 will revolutionize the token’s blockchain. He said that with its implementation, transactions will become considerably faster when compared to its predecessor.
Ethereum investors recently bought the dips and also booked the profits in the recent rally. It is currently trading above strong support levels and broke the resistance at $224 which gives enough room for growth and a rally from this point forward.
The weekly chart for ETH/USD
The weekly chart below for ETH/USD shows that Ethereum (ETH) has been following a particular pattern over and over again. That pattern involves previous support turning into the next resistance.
- If we look at the first trend line on the above chart that extends from way before 2016 and all the way to April 2017, we can see that it was broken around October 2016.
- Later on, that trend line serves as the next resistance and is tested in April 2017.
- The price is initially rejected by this resistance but soon afterwards, it pierces through this resistance and rises to a new all time high.
- This is not the only time this happened. If we look at the price between January 2017 and November 2018, we can see that the price broke below the trend line around August 2018.
Ethereum to reach New All-Time High in mid-2019
If history is to repeat itself, we should see the price running back into the broken support, now turned into resistance. This is expected to happen around early 2019. Initially, the price is expected to be rejected by this resistance, but will eventually have to break above it in order to reach a new all-time high. If ETH/USD follows this trajectory, it is expected to reach an all-time high around mid-2019. Experienced investors following the market for long, must have noticed a lot of things are already changing in this market. A few years back, we were at the experimental stage.
Back then, the future of Ethereum (ETH) was not very bright. It was just a community of some tech geeks trying to experiment with a new technology. The number of people who actually understood the concept and what the team was trying to build was very small.
Still, the large majority of people do not really understand the tech behind Ethereum (ETH). They are more interested in it as an investment rather than as a technology. However, Ethereum (ETH) today is far bigger and better than it was a few years back. The adoption it has seen is just a drop in a bucket compared to where it can go from here.