Ethereum (ETH) Price Analysis – January 18

  •  The ETH price had been fluctuating above the $120 price level in the last week.
  •  If the bears break the $120 price level, Ethereum will further depreciate.

Ethereum, ETHUSD, CryptoCompare chartEthereum Chart By Trading View

ETHUSD Medium-term Trend: Bearish

  • Resistance Levels: $230, $240, $250
  • Support Levels: $110, $100, $90   

Yesterday, the ETHUSD pair was in a bearish trend zone as the crypto ranges above the $120 price level. In retrospect, on December 15, the ETH price commenced its bullish trend and the bulls took teh price to the bullish trend zone. On January 6, the crypto reached the high of $165.86 but the bulls were resisted and the crypto commenced its bearish trend.

On January 10, the bears broke the 12-day EMA, the 26-day EMA and the price fell to the low of $129.50. In the last week, the crypto’s price had been fluctuating above the $120 price level. If the bears break below the $120 price level, Ethereum will further depreciate.

Meanwhile, the stochastic indicator is still in the oversold region but below the 20% range which indicates that the price of Ethereum is in a bearish momentum and a sell signal.

ETHUSD Short-term Trend: Bearish      

Ethereum, ETHUSD, CryptoCompare chartEthereum Chart By Trading View              

On the 4-hour chart, the price of Ethereum is in a bearish trend zone. From January 10, the price of Ethereum fell to its low and it commenced a range bound movement. The crypto’s price was below the EMAs and it had been trading above the $120 price level. After the range bound movement, a price breakout is being expected.

Meanwhile, the stochastic indicator is out of the overbought region but above the 25% range. This indicates that the price of Ethereum is in a bullish momentum and a buy signal.

 

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Steemit Moves to Limit Justin Sun’s Influence after Its Acquisition

Justin Sun, the founder of TRON, has announced he was going to acquire Steemit earlier this month, and shortly after those currently running the Steem blockchain executed a soft fork to limit his voting influence.

In a blog post describing the move, Steem’s witnesses [similar to bitcoin miners or EOS block producers] detailed that while it’s exciting to see a well-resourced entity get involved with Steemit, the witnesses are now moving to ensure the security of the Steem blockchain. The blog post reads:

To this end, we have updated to a temporary protective protocol to maintain the status quo currently established in regards to Steemit Inc's stake and its intended usage.

Steem is a delegated proof-of-stake (DPoS) blockchain, similar to EOS, in which a small number of entities – the witnesses – work to protect the blockchain and represent the community. The soft fork was deemed necessary because Steemit owns a large amount of STEEM tokens that could be used to take over the blockchain.

Given Justin Sun’s move to acquire Steemit, it’s believed he now owns those tokens and could use them to move Steemit in a specific direction. The soft fork blocks STEEM held by specific accounts from voting on who governs the network and from participating in ways that could see it seize control.

While the tokens have always been there, when co-founder Ned Scott ran the platform the community was comfortable with his approach to governance. Justin Sun has responded to the soft fork with an open letter to the Steemit community, in which he explains some of his potential plans for the Steemit platform itself.

The post reads:

We have so much to work to do to make Steemit.com the power that it really can be. And there are many ways we can get it there, from bridging TRX, TRC10’s and TRC20’s into Communities to marketing and growing Steemit.com. From invitations and referrals to simpler and instant signups.

Sun added his plans would also include listing STEEM on other major cryptocurrency exchanges and attracting large influencers to the platform, which is a mix of Reddit and Medium. He added he is organizing a summit called STEEMit 2.0 Town Hall, where he’s inviting the top 50 witnesses to participate.

It’s worth noting the Steem blockchain has several decentralized applications built on top of it, with Steemit being the most influential one.

Featured image by Ludovic Charlet on Unsplash.