Ethereum Price Analysis- Ether Got Chances for Rising
Ether is trading at $607.60 on June 6, going slightly down. According to RoboForex analyst Dmitriy Gurkovskiy statements, interesting things happened, however, a bit before.
The bulls got quite engaged in Ether when it reached $570 and $572, which made the digital coin go up firmly. At the same time, technically, two bearish trends at $588 and $591 were broken out on H1. On D1, meanwhile, the local descending channel stopped, following a correction and then consolidation.
Now Ether got balanced and, in theory, may continue strengthening against the dollar with the targets at $615 and $620. The key support is at $595, the resistance is at $615. The MACD is in the negatives on D1 and is moving sideways, although ready to start rising slightly, giving a neutral signal. Meanwhile, the Stochastic is in the positives, rising, and still issuing a buy signal.
There has been not so much news for Ether lately. Still, during the latest Q&A session in OmiseGo AMA the founder Vitalik Buterin said Sharing and Plasma technologies will enable processing 1M transactions soon. Their potential is even higher, around 100M of transactions.
Such high transaction processing rate is very important in the global finance, especially regarding overseas fund transfers, where the exact transaction time is still often unknown. Currently, most decentralized networks work on making the transactions speedier by dealing with the scalability issues. As soon as such issues are over, making transaction processing faster will be an easy thing.
The scalability issue is, in its turn, related to the block size restriction set by the developers. Such restriction was in place at the very beginning of cryptos, but now it is really hard to amend this.
Last fall, Buterin explained that both Ethereum and Bitcoin process up to 6 transactions per second, with full working capacity. Meanwhile, in order to meet VISA payment needs or enable fund transfers within stock exchanges, this number should be around a few thousands per second. With this number reached, the effect of such techs will be visible and the global financial system will be taken to the next level.
Disclaimer Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.