USD/ETH is Trading Steady at $1,700+ as Weekend Ensues
Looks like a boring weekend ahead for lovers of cryptocurrencies, at least in terms of Ethereum. The world’s second largest cryptocurrency continues to hang around the $1,700 mark, with the occasional minor drop here and there only to ultimately move back to around the same level.
The Key Breaker: Painful Resistance Ahead?
Could this just be a mere hangover from the recent frenzy of activity or is a bigger correction looming in store for ETH/USD? As regards technical analysis, resistance lies just ahead for Ethereum, around the $1,750 level.
What does this mean? Well, effectively it means that the bulls remain in control, but to make any clear advances above the $1,750 mark will require plenty of buying pressure. How likely is this to happen? Well, it’s tough to say.
Gas Fee Issue: Mo’ Money, Mo’ Problems
For Ethereum to make any significant gains the daily transactions on the Ethereum blockchain will need to increase. This is due to the fact that Ethereum uses a transaction fee system called “gas” to verify transactions on the blockchain.
Unfortunately, gas prices are still quite high, and this might deter users from transacting on Ethereum’s blockchain. This is bad news if Ethereum is to move up in price.
Positives and Negatives: Is Now the Time?
Ultimately, Ethereum’s price is determined by the activities of buyers and sellers – and the consensus is that there is still an appetite for Ethereum.
The positives that are still surrounding Ethereum are that:
- It is still the second largest cryptocurrency. Furthermore, Ethereum remains a prominent figure in the blockchain industry with its usage extended beyond just cryptocurrency.
- The network continues to run well. Even with current daily transactions still high, the Ethereum blockchain is holding up well, with the occasional blip expected from time to time.
The negatives and risks to consider are:
- The gas fee issue. This remains the biggest impediment for Ethereum returning to its all-time high.
- The inflation bug. Ethereum has yet to implement its upgrade of switching to a proof-of-stake model, and this could lead to issues with inflation.
Final Word: Time to ‘HODL’ or Sell?
So, is it time to buy or sell Ethereum? The answer is not so simple, but if you’re looking for a long-term play then you may want to hang on to Ethereum – let’s call it ‘HODLing’. If you’re looking for something more near-term then, unfortunately, the current range-bound market may be more fitting.
Happy weekend everyone!
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