Technical Points: ETHUSD Tests Above Ichimoku Cloud

The ETH/USD pair tested above the daily Ichimoku cloud on Monday, after ranging inside the cloud for a few days. This formed a bullish engulfing chart pattern, following two consecutive spinning tops. This is creating mixed signals for the pair, as we also have a number of bearish signals in the process of forming, including a long-term double top which formed at the 400 resistance level. If we get the confirmation above the cloud today, we could see the pair moving up to the 23% Fibonacci level of 338 in the next couple of weeks. The extended resistance is set at 394.

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ETHUSD Tests Above Ichimoku Cloud - Ethereum Update

Fundamental Points

The ETH/USD bullish sentiment could be attributed to the fact that Ethereum’s founder, Vitalik Buterin, said in an interview that Ethereum can replace things like credit card networks and even gaming servers in a couple of years. He believes a good blockchain application is something that needs decentralization and some kind of shared memory, and that is Ethereum. Right, now, however, the network is a bit too slow for most mainstream applications.

If Buterin is correct with his forecast, the Ethereum network could pose a real challenge to large financial institutions like Visa as soon as next year. Blockchain technologies like Ethereum are widely believed to be the next big disruptor for industries ranging from law to shipping.