Ethereum Price Analysis: ETH/USD settles above SMA200 daily

By February 1, 2020 Ethereum
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  • The switch to Ethereum 2.0 won't be detrimental to business solutions.
  • ETH/USD may extend the correction within the bullish trend.

Ethereum, the second-largest digital asset with the current market capitalization of $19.8 billion, hit $186.72 during early Asian hours and retreated to $180.32 by the time of writing. Despite the retreat, the coin has gained nearly 3% in recent 24 hours, moving in sync with the market.

Ethereum 2.0 won't kill ETH-based enterprise solutions

Ethereum blockchain facilitates the development of enterprise solutions. The ecosystem often referred to as the "world's computer" is often promoted as the best option available for enterprises. This view is shared by Beiko, Core Ethereum Developer. Speaking in a recent interview with BlockTV, he noted that the Ethereum community has the strongest and most talented developers and demonstrates the fastest growth of innovations.

“A lot of the new ideas and concepts are developed in Ethereum for example, like smart contracts, stablecoins, and most recently DeFi.”

He also mentioned that the switch from Proof-of-Work to Proof-of Stake would not affect the enterprise solutions based on Ethereum blockchain mainnet. He explained that the switch would be gradual and the fears were ungrounded.

“There will be different stages of phases and as that happens, it will become easier and easier to switch over until the very last stage when it is completely automatic.”

ETH/USD has settled above SMA200 daily (currently at $175.50) for the first time since September 2019. In the short-run, the coin needs to settle at least above $180.00 for the upside to gain traction and retest the recent high at $186.72. Once it is out of the way, ETH may move further upwards towards $190.00 and to the ultimate resistance at $200.00.

On the downside, the initial support is created by the above-mentioned SMA200 at $175.50. If it is broken, the sell-off may be extended towards $160.00 and to SMA100 daily at $157.20. This is critical support that needs to be protected at all costs. Once the price is above this area, the trend remains bullish, while the downside move qualifies as a correction.

ETH/USD daily chart

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