Ether prices rose to a
six-week high of $350 today as ethereum, the second largest blockchain by total
value, appears to have successfully executed a widely anticipated software
upgrade.
The first part of a larger
technology update called "Metropolis," the "Byzantium" code
was enacted this morning Eastern Standard Time with minimal contention as
anticipated by developers. For now, this means ether's price has put a serious
headwind behind it – the next so-called hard fork, a risky software upgrade
that opens up the possibility new blockchains will be created, isn't expected
until 2018.
In response, the ether-US
dollar (ETH/USD) exchange rate surged in value in the run-up to the event.
Prices rose from $298 to $345
on Oct. 13 reportedly due to a high degree of confidence among investors,
though the record rally in bitcoin could have pulled ether prices higher as
well.
At press time, however,
indications are the upgrade is unlikely to be winning new market interest.
Despite the smooth implementation, ether prices are struggling to break above
$350 levels. The loss of bullish momentum indicates the market may have
priced-in the implementation.
Furthermore, ETH bulls might
be staying on the sidelines in search of more evidence the software has
achieved stability.
Still, the price action
analysis favors upside in ether. At press time, ether is trading at $342; up
5.5% in the last 24 hours. Week-on-week, the cryptocurrency is up 13.15%, while
month-on-month, it is up 30%.
Dayli Chart
The chart shows:
Dip demand: Sunday's candle
had a long lower body (also known as lower shadow or wick). Prices usually move
in the opposite direction after a long wick makes an appearance. No wonder,
ether rose to $350 levels today.
Bullish break of the sideways
channel.
Bullish 14-day relative
strength index.
View
The outlook remains
constructive – it may be only a matter of time before ether breaks above $350
and extends the rally to $370-380 levels.
On the downside, only an end
of the day close below $320 (previous day's low) would abort the bullish view
on the daily chart.
Source: Coindesk
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