Ethereum Price Prediction: ETH Has Five Straight Bearish Days
Daily Ethereum ETH Technical Analysis
- The MACD for Ethereum price shows increasing bearish momentum.
- ETH has a lack of strong support walls on the downside.
Over the last five days, the Ethereum price has dropped from $1,805 to $1,580, losing almost $225 in its overall valuation. During this time period, the 20-day and 50-day SMAs have reversed from support to resistance,
Ethereum Price In Full Bearish Control
There are two negative signals that you should look at when studying the daily Ethereum price chart:
- The MACD shows increasing bearish market momentum.
- The parabolic SAR has reversed from positive to negative.
Image: ETH/USD daily
On the downside, there is a dangerous lack of strong support walls on the downside. Previously, at $1,550, over 355,000 addresses had purchased 1.46 million ETH tokens.
Ethereum’s Hermez Goes Live
Ethereum Layer 2 scaling solution Hermez Network has recently gone live on the mainnet, helping users make transfers at lower gas costs. Hermez uses ZK-Rollups technology for scalability. According to The Block report, Hermez's tech lead Jordi Baylina said:
People should save around 90% of gas costs.
With around 90% savings, the average gas fee would come down to about $1.5 per transaction from the current levels. Apart from lower gas fees, Hermez also has a higher throughput than Ethereum. Ethereum currently processes around 15 transactions per second. Baylina said Hermez multiplies the capacity of Ethereum by 100 times.
Hermez uses ZK-Rollups for scalability, which helps group hundreds of transfers into a single transaction. This helps in reducing data storage and gas fees for validating transactions. Ethereum co-founder Vitalik Buterin recently said that ZK-Rollups "will win out in all use cases" in the medium to long term as ZK-SNARK technology improves.
Tether is one of the first projects to integrate with Hermez. With Hermez's mainnet launch, Tether's USDT stablecoin is now available on the network. Besides USDT, Hermez is also supporting Ether (ETH), Wrapped Bitcoin (WBTC), Dai (DAI) and Hermez token (HEZ). Baylina added:
We will add many other tokens very soon. Hermez is open to any ERC20 token.
Baylina also noted that the team is working to make Hermez "fully decentralized."
During the upcoming weeks, we need to fine-tune some parameters, and we hope to have very soon a fully decentralized governance less system.
Vitalik Buterin Is Bullish On NFTs
Vitalik Buterin, the co-founder of Ethereum, recently shared his thoughts on non-fungible tokens (NFT). He said that NFTs could be applied to socially relevant causes like charities and funding public welfare. However, this won’t happen while people view the technology as a “casino that largely benefits already-wealthy celebrities” he added.
In a blog post titled “The Most Important Scarce Resource is Legitimacy,” Buterin said public attention and resources are often allocated to things most people perceive to have legitimacy.
Which NFTs people find attractive to buy, and which ones they do not, is a question of legitimacy.
Buterin noted that the attention brought to NFTs by Twitter CEO Jack Dorsey was laudable. He referred Dorsey’s decision to auction off his “first tweet” NFT to charity for $2.9 million. But, if the focus remains on famous people, then the potential for NFTs to have any real social impact could be lost, Buternin added.
If NFTs simply become a casino that largely benefits already-wealthy celebrities, that would be a far less interesting outcome.
The Ethereum co-founder suggested two potential ways to help make NFTs more “legitimate” for social causes. First, he recommends the establishment of a decentralized autonomous organization. This entity could “sanction” certain NFTs and a part of the sales revenue from these NFTs would go to charitable causes.
Second, Buterin suggested that social media platforms could integrate NFT displays into users’ profiles, letting them show off the thing they invested their money in. According to him, this approach would help “nudge users toward NFTs that contribute to valuable social causes.”
Ethereum Price Is Expected To Reach These Levels
Ethereum price will likely drop to the $1,550 support wall. A further break will take it to $1,500.