Ethereum Price Rallies 15% In Two Days, Nears Resistance Zones

Colin Muller

Ethereum (ETH) is starting 2019 with some welcome gains, climbing about fifteen percent since the new year to $152 at time of writing. ETH has also regained its number two spot in terms of market capitalization rankings, after being recently knocked off by XRP.

Ethereum Price, ETHUSD CryptoCompare Chart

The climb above $150 comes after a brutal fall to double digits during December, when the price of ether dove as low as $80. It has taken only about two weeks to complete the roughly 90% climb back into triple digits.

Ethereum’s rally could face resistance between $170-185, which zone served as support in November during ether’s trip down to double digits.

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Ethereum Winter

Ethereum, both as a project and as a digital asset, has taken a shellacking during 2018 along with the rest of the cryptoasset industry. The price of ether declined almost 95% during the year, from roughly $1400 during January 2018.

Consensys, the Ethereum dApp incubator, has recently restructured its management strategy in a bid to be more productive and deliver useful (and profitable) Ethereum dApps. The company also fired thirteen percent of its quite large workforce - at one time numbering over 1000 - presumably feeling the pinch of collapsing ether prices.

Vitalik Buterin, Ethereum’s boy-genius creator, recently took to Twitter to muse on being thankful for things he’s usually not thankful for. He cautiously praised both the fiat monetary system for doing “a reasonably good job of being stable,” and Donald Trump for supporting progressive criminal justice reform in the US.

Here Is What You Need to Know About Upgrade to Multi-Collateral DAI (MCD)

MakerDAO is set to launch multi-collateral Dai today, and the move is going to bring in quite a few changes Ethereum users need to be aware of to keep up with what’s going on.

According to a blog post published by MakerDAO, the release of multi-collateral Dai is going to bring in various new features, terminology changes, and some new potential to the decentralized finance (DeFi) space.

It’s important to start off with the new terminology. Dai’s collateralized debt positions (CDPs) are now going to be named “Vaults,” while current Dai is going to be renamed to Sai (Single-Collateral Dai). Multi-Collateral generated Dai will be known as Dai.

How to Upgrade Sai to Dai

MakerDAO is providing users a Migration app that’ll allow them to convert their Sai to Dai using their Ethereum wallets. Users are advised to migrate as soon as possible as  when the cryptocurrency community deems Sai isn’t manageable anymore an Emergency Shutdown will be triggered.

Users that keep their funds on cryptocurrency exchanges will likely have to do nothing, assuming their trading platform supports the move. Some of the exchanges that supports Multi-Collateral Dai include Coinbase, Bitfinex, Crypto.com, Kraken, and Bittrex.

Multi-Collateral Dai’s Advantages

Holders of MarkerDAO’s MKR token have approved Multi-Collateral Dai and this essentially means any tokenized asset can be made available as collateral for Dai. MKR voters have selected seven cryptocurrencies to evaluate initially, including Brave’s Basic Attention Token (BAT), 0x (ZRX), OmiseGo (OMG), and Augur (REP).

The current Single-Collateral Dai system sees stability fees be paid in MKR, while the new system will see Vault owners pay for their stability fees in the stablecoin. Dai itself will differentiate itself from other stablecoins by providing holders with the potential to earn interest.

This through the Dai Savings Rate (DSR), a feature that’s going to be “accessible to anyone who holds Dai,” that will have almost no liquidity impediments, and will “from a counterparty risk perspective, be no riskier than simply holding Dai.” MakerDAO’s blog post adds it will even help maintain Dai’s peg to the U.S. dollar:

[The DSR will] Be sourced from the Stability Fees paid by Maker Vault owners; therefore, it will act as another mechanism to help balance the entire system.

The DSR is going to be a smart contract in the Maker Protocol, which means decentralized applications will be able to use it.