Blockchain is a new and disruptive tech. That has been mentioned enough times now. However, Blockchain means nothing if there people don’t use it.
Ideally, like electricity is vital, some futurists project that blockchain, as it evolves from the current state, will be the bed rock of the token economy.
Adoption will spark Demand for ETH
A tech that governments and firms seeking efficiency will anchor their services on. That’s why, recently, Ethereum’s enthusiast were excited to learn that the network was performing better despite price slumps.
Less than two weeks after the value-wiping price falls of Mar 11-13, the number of Ethereum daily active addresses rose from pre-Black Thursday’s average of 250,000 to 395,000.
A 9-month highs, highlighting how active the network was. According to Santiment, this heightened activity spells positive for ETH bulls for simple reasons.
ETH Prices Maintain a Bearish Trend
Ordinarily, and as economics rules dictate, the higher the demand, the better prices become. And the higher there is on-chain activity, the higher the demand for ETH.
In the last week, ETH prices has recovered and has registered gains versus USD, adding 17% in the last week.
Although prices are trending below a critical resistance level, this could be the building blocks for further price gains and a much-welcomed recovery after Feb 2020 gains were quickly crashed in the first half of Mar 2020.
ETH/USD Price Analysis
ETH price is bearish as long as prices is below $150.
At the time of press, the coin is up 17% in the last trading week, and remains in consolidation. Although bears are in control, there is a chance for ETH bulls in the immediate term.
First, Mar 24 didn’t print a bearish bar meaning gains of Mar 23 are intact. From an Effort versus Result perspective, bulls will only regain control once Mar 12 losses are completely recovered.
However, before risk-averse traders can initiate longs, the correction and therefore ETH price recovery will be activated once there is a sharp close above $150 as the under-valuation of Mar 13 is corrected. This could trigger short term bulls aiming at $200.
On the flip side, losses below $110 or Mar 13 lows spark more selloffs towards $75 or Dec 2018 lows.
Chart courtesy of Trading View – Coinbase
Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.