Ethereum Foundation’s Determination is “Very” Bullish for ETH
Ethereum (ETH) up 15.8 percent
$30 million set aside for Ethereum’s ecosystem development
The Ethereum Foundation appears to be fast-tracking Ethereum 2.0 development after committing $30 million. Once Ethereum 2.0 activation, ETH bulls will benefit, and prices may soar back to their all-time highs.
Ethereum Price Analysis
Overly, Bitcoin price expansion in the last seven weeks or so was beneficial for altcoins, especially Ethereum (ETH). In May alone, the second most liquid asset rallied 55 percent after sinking to $75 in Dec 2018. However, with streams of supportive fundamentals and determination of the Ethereum Foundation to roll out Ethereum 2.0 on time could be the momentum behind Ethereum (ETH) price resilience.
Towards achieving their objectives, the Ethereum Foundation is committing $30 million over a year saying the funds will primarily cover ecosystem development with a focus on layer-2 solution Plasma, their key developers and maintenance of Ethereum 1.0.
As the race for scalability heats up, it is inevitable for Ethereum to continuously improve its source code now that recent findings reveal that albeit the low throughput, the platform has a mature ecosystem while active developers keen on ensuring the network remains decentralized and distributed as possible.
Of the $30 million, $19 million will go towards building an excellent platform, the “Ethereum of tomorrow” opening up smart contract languages and putting more research towards the eventual implementation of zero-knowledge proofs that Vitalik had said would concurrently scale Ethereum without opting for layer-two solutions or shards.
Up 15.8 percent in the last week, Ethereum (ETH) bulls are steadfast and in control. Even though we are definite, expecting prices to rally past our resistance lines at $275 towards $300, prices are consolidating within a $25 range inside May 19th high low which is bullish now that the uptrend is clear.
Therefore, unless otherwise, prices breach $275 reversing losses of late last week in a trend continuation phase complete with high participation levels hinting of underlying momentum, then conservative traders ought to stay on the sidelines until our trade conditions are valid.
Before then, aggressive traders can search for undervaluation in smaller time frames and load up on dips with stops at $230. From our last ETH/USD trade plan, any drop below May 19th low invalidates our bullish outlook giving room for a retracement, a retest, towards the $170 to $190 support zone.
As a result, our anchor bar is May 19th bull bar with 271k in volumes. Breaks or drops below $275 or $230 must be at the back of high transaction volumes above 271k or preferably 822k of May 16th.
Chart courtesy of Trading View. Image Courtesy of Shutterstock
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