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%.
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.
- 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.
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