- Bulls and bears playing tug-of-war with Ethereum price in the two latest days.
- The parabolic SAR and MACD indicate bullish sentiment.
Between June 26 and June 30, the Ethereum price rose from $1,800 to $2,275 – gaining $475 in its overall valuation. Due to this rise, ETH managed to flip the parabolic SAR from negative to positive. Following these five consecutive bullish days, the bears managed to take control and correct ETH to $2,105 on July 1. What followed this correction was another bullish rally.
Ethereum Price Hovers Horizontally Between $2,200 and $2,300
The Ethereum price had three straight bullish sessions between July 2 and July 4 wherein it went from $2,120 to $2,315. On July 5, ETH fell to $2,200 and then rose up again to $2,310. The 50-day SMA is preventing Ethereum from rising up any higher. The MACD indicates sustained bullish market momentum.
Image: ETH/USD daily
Looking at IntoTheBlock’s IOMAP, the 50-day SMA ($2,400) provides strong resistance. Previously, at this level, over 667,000 addresses had purchased almost 3 million ETH tokens.
EY Launches Layer 2 Tools
Auditing giant Ernst & Young (EY) recently released a zero-knowledge proof Layer 2 protocol to help with addressing rising transaction fees on Ethereum. The zero-knowledge proof (ZKP) protocol has been designed to enable private transfers of ERC-20 tokens in addition to improving overall efficiency.
The project, known as Nightfall 3, combines zero-knowledge proofs with a new model for handling transaction verification. The combined protocol, known as a ZK-Optimistic Rollup, aggregates ZKP transactions into groups, called rollups.
According to reports, EY teams have previously contributed ZKP protocols to the public domain. Optimistic Rollups are one of many Layer 2 technologies that have been adopted this year. Instead of verifying each transaction, the network assumes that all of them are correct, making users intervene if they see an incorrect transaction by submitting “fraud proof.”
Using ZK-Optimistic Rollups, the protocol can achieve a cost of approximately 8,200 gas per transaction while also maintaining privacy, the firm added.
“This is almost one-eighth of the cost needed to make a conventional, public ERC20 token transfer.”
It also reported that Nightfall 3 was designed to reduce the learning curve required by developers to implement privacy. It provides them with a standardized application programming interface (API) similar to other token transfer tools.
EY Global Blockchain Leader, Paul Brody, stated:
“Based on EY experience, ZK-Optimistic roll-ups are currently among the most effective in balancing security incentives and mathematical efficiency for running private transactions on the public Ethereum network.”
Ethereum Price Is Expected To Reach These Levels
Ethereum price has the bullish momentum needed to take down the 50-day SMA. If the buyers remain in control, ETH should take down the $2,600 resistance.