Hello everyone and welcome to yet another idea of mine, if we look at ETH over the past month you would olmost say it is dieying out
But dont get fooled eth is still by far the number 2 in total value aswell as volume & transactions
Now before we start with the analysis you will have to understand the reason why ETH is losing its value so much.
To start of
ICO's
*Sec and other security instances are not happy with ico's and the amount of scam ico's they will there for try to solve this,
the impact of this is in some sort of way negative news as a result of a continue sale off of ico tokens aswell as ETH.
*The effects of an ending hype is also part of the prices dropping more can be found in this article about it
www.coindesk.com/are...event-many-think-so/
ETH Issues
Although the Ethereum blockchain is the second most popular in the cryptocurrency industry, it actually has a few issues regarding scalability. (Scalability refers to the number of transactions a blockchain can process per second.)
Ethereum is only able to process 15 transactions per second. In the early days of the project this was not a problem, as not many people were using it. However, as Ethereum has got more popular, it has become the biggest issue the Ethereum blockchain faces.
To give you an idea of how limited it is, the NEO blockchain (which can also process smart contracts) can reportedly process up to 10,000 transactions per second. Unless the Ethereum developers resolve their scalability issue, then organizations might consider using other blockchains to host their smart contracts and dApps instead of Ethereum. If this happens in the future of Ethereum, its price is likely to crash. (as shown how the past weeks been)
So, as you can see, this issue is of paramount importance.
ETH solutions
*Casper*
there are solutions to scaling like Proof-of-Stake (Casper) Although the Casper upgrade was first discussed in mid-2017, the team are yet to finish working on it. It is believed that it will be installed during 2018.
*Plasma*
The Plasma project was first announced by Vitalik Buterin in August 2017 and is being developed to solve Ethereum’s scalability problems. Essentially, Plasma is a protocol that will allow the Ethereum blockchain to remove the need to process unnecessary data. It will do so by creating a second layer on top of the main blockchain.
It will still be able to process smart contracts, however it will only post them to the blockchain once the contract has been completed. This will significantly reduce the amount of computational power the blockchain needs to confirm transactions and it will also save lots of memory.
The Plasma protocol will also speed up transaction times, which will allow the network to host dApps without slowing the system down.
Plasma development is still in its very early days of production, so we are not yet sure when it will be installed on top of the Ethereum blockchain.
*sharding*
Just like in the case of the Plasma protocol, Sharding is also being developed to solve the issues of scalability. Before understanding what Sharding will do, let’s try and understand what the actual issue is.
At the moment, every node that is connected to the Ethereum blockchain needs to verify every single transaction that goes through it. For example, if there are 4,000 transactions that need to be verified in the next block, then every node must verify all 4,000 transactions.
Although this is really good for security, it also means that the network is only as quick as the individual nodes that are connected.
to make the story short, doom thinkers this is not the end of ETH like any other blockchain it has its issues and will adopt over time.
Techical analysis: mid term (2 months)
So far we seen mostly red on the boards of ETH past weeks if not months with no real corrective move however i think ETH is finding a bottom or (temorary bottom) soon
This is becuase ETH is finding some strong supports between 190 and 150 USD the long targets would depend on how long it takes to go up as we have descending resistance lines
therefor changes daily, if it comes to fibbonaci we can find targets at 327, 423, and 498 USD i am bullish becuase of indicators and the upkoming update in oktober, we have yet to see what it brings to us, but the fact its trying to solve issues is in my opinion a bullish thing
i hope you enjoyed the explaination & technical analyses, if so please make sure to follow me and give it a like as appreciation! will regulary update this idea along the way!
thanks again!
But dont get fooled eth is still by far the number 2 in total value aswell as volume & transactions
Now before we start with the analysis you will have to understand the reason why ETH is losing its value so much.
To start of
ICO's
*Sec and other security instances are not happy with ico's and the amount of scam ico's they will there for try to solve this,
the impact of this is in some sort of way negative news as a result of a continue sale off of ico tokens aswell as ETH.
*The effects of an ending hype is also part of the prices dropping more can be found in this article about it
www.coindesk.com/are...event-many-think-so/
ETH Issues
Although the Ethereum blockchain is the second most popular in the cryptocurrency industry, it actually has a few issues regarding scalability. (Scalability refers to the number of transactions a blockchain can process per second.)
Ethereum is only able to process 15 transactions per second. In the early days of the project this was not a problem, as not many people were using it. However, as Ethereum has got more popular, it has become the biggest issue the Ethereum blockchain faces.
To give you an idea of how limited it is, the NEO blockchain (which can also process smart contracts) can reportedly process up to 10,000 transactions per second. Unless the Ethereum developers resolve their scalability issue, then organizations might consider using other blockchains to host their smart contracts and dApps instead of Ethereum. If this happens in the future of Ethereum, its price is likely to crash. (as shown how the past weeks been)
So, as you can see, this issue is of paramount importance.
ETH solutions
*Casper*
there are solutions to scaling like Proof-of-Stake (Casper) Although the Casper upgrade was first discussed in mid-2017, the team are yet to finish working on it. It is believed that it will be installed during 2018.
*Plasma*
The Plasma project was first announced by Vitalik Buterin in August 2017 and is being developed to solve Ethereum’s scalability problems. Essentially, Plasma is a protocol that will allow the Ethereum blockchain to remove the need to process unnecessary data. It will do so by creating a second layer on top of the main blockchain.
It will still be able to process smart contracts, however it will only post them to the blockchain once the contract has been completed. This will significantly reduce the amount of computational power the blockchain needs to confirm transactions and it will also save lots of memory.
The Plasma protocol will also speed up transaction times, which will allow the network to host dApps without slowing the system down.
Plasma development is still in its very early days of production, so we are not yet sure when it will be installed on top of the Ethereum blockchain.
*sharding*
Just like in the case of the Plasma protocol, Sharding is also being developed to solve the issues of scalability. Before understanding what Sharding will do, let’s try and understand what the actual issue is.
At the moment, every node that is connected to the Ethereum blockchain needs to verify every single transaction that goes through it. For example, if there are 4,000 transactions that need to be verified in the next block, then every node must verify all 4,000 transactions.
Although this is really good for security, it also means that the network is only as quick as the individual nodes that are connected.
to make the story short, doom thinkers this is not the end of ETH like any other blockchain it has its issues and will adopt over time.
Techical analysis: mid term (2 months)
So far we seen mostly red on the boards of ETH past weeks if not months with no real corrective move however i think ETH is finding a bottom or (temorary bottom) soon
This is becuase ETH is finding some strong supports between 190 and 150 USD the long targets would depend on how long it takes to go up as we have descending resistance lines
therefor changes daily, if it comes to fibbonaci we can find targets at 327, 423, and 498 USD i am bullish becuase of indicators and the upkoming update in oktober, we have yet to see what it brings to us, but the fact its trying to solve issues is in my opinion a bullish thing
i hope you enjoyed the explaination & technical analyses, if so please make sure to follow me and give it a like as appreciation! will regulary update this idea along the way!
thanks again!