Priced In? Ether Sees Cautious Boost as Blockchain Upgrade Underway

Despite an apparently smooth technical upgrade, the price of ether is flat at press time, continuing to trade in the $350 range.

Oct 16, 2017 at 12:15 p.m. UTC
Updated Sep 13, 2021 at 7:02 a.m. UTC
Layer 2

Ether prices rose to a six-week high of $350 today as ethereum, the second largest blockchain by total value, appears to have successfully executed a widely anticipated software upgrade.

The first part of a larger technology update called "Metropolis," the "Byzantium" code was enacted this morning Eastern Standard Time with minimal contention as anticipated by developers. For now, this means ether's price has put a serious headwind behind it – the next so-called hard fork, a risky software upgrade that opens up the possibility new blockchains will be created, isn't expected until 2018.

In response, the ether-US dollar (ETH/USD) exchange rate surged in value in the run-up to the event.

Prices rose from $298 to $345 on Oct. 13 reportedly due to a high degree of confidence among investors, though the record rally in bitcoin could have pulled ether prices higher as well.

At press time, however, indications are the upgrade is unlikely to be winning new market interest. Despite the smooth implementation, ether prices are struggling to break above $350 levels. The loss of bullish momentum indicates the market may have priced-in the implementation.

Furthermore, ETH bulls might be staying on the sidelines in search of more evidence the software has achieved stability.

Still, the price action analysis favors upside in ether. At press time, ether is trading at $342; up 5.5% in the last 24 hours. Week-on-week, the cryptocurrency is up 13.15%, while month-on-month, it is up 30%.

Daily chart

CoinDesk - Unknown

The chart shows:

  • Dip demand: Sunday's candle had a long lower body (also known as lower shadow or wick). Prices usually move in the opposite direction after a long wick makes an appearance. No wonder, ether rose to $350 levels today.
  • Bullish break of the sideways channel.
  • Bullish 14-day relative strength index.

View

  • The outlook remains constructive – it may be only a matter of time before ether breaks above $350 and extends the rally to $370-380 levels.
  • On the downside, only an end of the day close below $320 (previous day's low) would abort the bullish view on the daily chart.

Golden gears via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Defining Cryptocurrency Regulation Important for the Industry to Grow: Morgan Stanley

Disagreement on new legislation would be negative and lead to an extended period of uncertainty, the bank said.

Disagreement on new legislation would be negative and lead to an extended period of uncertainty, the bank said.

CoinDesk - Unknown
2
CoinDesk - Unknown
'Not About Playing It Safe': Krista Kim on How Artists Inspire the Metaverse

As contemporary artist Krista Kim sees it, there are too many corporate executives conceiving these new virtual worlds and not enough genuine creatives.

As contemporary artist Krista Kim sees it, there are too many corporate executives conceiving these new virtual worlds and not enough genuine creatives.

CoinDesk - Unknown
3
CoinDesk - Unknown
StarkWare Reaches $8B Valuation Following Latest $100M Funding Round

The blockchain scaling solution last raised funds in November at a $2 billion valuation.

The blockchain scaling solution last raised funds in November at a $2 billion valuation.

CoinDesk - Unknown
4
CoinDesk - Unknown
Wormhole Bridge Expands to Cosmos Ecosystem

The Jump-backed cross-chain connector will integrate with Injective, an EVM-compatible chain in the Cosmos ecosystem. It becomes Wormhole’s 11th chain.

The Jump-backed cross-chain connector will integrate with Injective, an EVM-compatible chain in the Cosmos ecosystem. It becomes Wormhole’s 11th chain.

CoinDesk - Unknown