The price of the second largest cryptocurrency, Ethereum, is currently standing around the $570 region, as it has been limited to the $553 and $580 regions for some time now. Ethereum price has gone up by 1.5% over the past 24 hours despite a slight decrease in its trading volumes. Its price seems to have followed that of industry leader Bitcoin, which has gone up from the $7,300 level to currently trade at $7,546 per coin.
A look at the ETH/USD chart indicates that the $600 mark remains a strong resistance where fresh selling interest has accumulated. If that resistance is broken, then the Ethereum price would pump high to another resistance, created by 100-DMA currently at $626 50-DMA at $644, and 23.6% Fibonacci at $652. On the downside, the potential is limited to the $500 support at the moment and a dip below that would see Ethereum sink to the $400 and $362 levels.
Some of the price movement has to do with the comment of Chinese President Xi Jinping regarding the blockchain technology which he describes as a breakthrough technology.
According to CNBC, he stated;
A new generation of technology represented by artificial intelligence, quantum information, mobile communications, internet of things and blockchain is accelerating breakthrough applications.
China isn’t the only country in the world to realize the potential in blockchain, even though the country still maintains its tough stance on cryptocurrencies.
The price of Ethereum, even though currently up, seems to be affected by the upcoming EOS MainNet launch which many claim would be a fierce competitor to the Ethereum network. Some developers might decide to move their project to the new EOS network which would be completed sometime next month. If that happens, which most likely it would, then it would not only affect the Ethereum network but also the Ether (Ethereum’s cryptocurrency).
Since most cryptocurrencies take a cue from the price movement of Bitcoin, it is most likely that Ethereum price will dip in the coming hours. The low trading volumes mean that the little surge in price cannot be sustained and this will lead to a dump.