2021-03-09 23:35:38

Ethereum continues to disrupt the global financial system but ETH price shows weakness

  • Ethereum price is holding new highs, but the recent breakout is lacking investor commitment.
  • Meanwhile, Vitalik Buterin discusses smart contracts and the transparency of the Ether ecosystem.
  • According to Buterin, Bitcoin is like a spreadsheet, but Ethereum is like a spreadsheet with macros.

The Ethereum network is growing stronger over time while prices show that bearish momentum is building up despite its recent breakout. 

Wall Street, bankers, judges, and lawyers replaced by smart contracts

Vitalik Buterin, the founder of Ethereum, said in a recent podcast that smart contracts are getting far more complicated over time. Now, they can actually be used not just to create financial applications but go beyond that. 

According to Buterin, one of Ethereum’s most exciting properties is called comparability, where developers can use the protocol almost like Lego blocks. Each block builds on the rest, and the final product in DeFi ends up very advanced in the traditional world.

So the infrastructure that gets built in DeFi and Ethereum, although it’s very difficult to build, and it’s complex, once a piece is built, it is available to everybody and sort of stacks on to each other almost to create one of those Japanese style Voltron robots that just gains in power.

The Russian-Canadian programmer states that cryptocurrencies like Ether are inherently designed to be “sovereign resistant” because they are stateless, so geographic redundancy is key. Even though some countries like China and India have tried to ban this new asset class, Buterin says that cryptocurrencies are here to stay. 

He also highlighted that the Ethereum ecosystem is transparent, making it easier to understand the rules and be very egalitarian. An environment that is just inherently more open and honest than the traditional financial system.

Ethereum price points to further price consolidation

The near-term outlook for Ethereum price based on the weekly chart is neutral. Volume has not been supportive of the recent breakout, and the Relative Strength Indicator (RSI) is showing a bearish momentum divergence with the most recent price peak.

ETH/USD Weekly Chart

Key to the neutral outlook for Ethereum price is the strength of the 10-week moving average, which currently sits at $1,545. This trend-following indicator has served as key support since October 2020. 

If it were to fail, then the $1,420 price level will be in play and possibly the 50% retracement level of the advance from the March 2020 lows.

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