Ethereum is about to become the first block chain to process $1 trillion this year
ETH price trades in the green zone with 8.7% as buyers work to achieve the highest weekly closing since August
A withdrawal to $395 would provide an opportunity to buy ETH at a solid risk-return level
The Ethereum (ETH) share price is on its way to securing the largest weekly gains in more than 2 months after the world’s second largest digital asset broke through the intra-weekly resistance line.
Fundamental analysis: The first block chain to process $1 trillion this year
Ethereum is on the verge of becoming the first block chain to process $1 trillion this year, with transaction volumes twice as high as Bitcoin. The rolling 30-day average of the transaction volume is at present with approximately 7 billion dollar and thus clearly higher than the 3 billion dollar of Bitcoin, so the offerer of cryptographic data Messari.
If it succeeds to maintain this rate, Ethereum will probably become the first block chain, which processes transactions in this year at a value of 1 trillion dollar, said Messari. Bitcoin is expected to process approximately $800 million this year, the best result after 2018.
Except for this year, Ethereum’s best performance in terms of transaction volume in 2018 was when the company processed approximately $500 million, compared to Bitcoin’s $849 million this year.
However, this is not a direct comparison between the two largest block chains in the world, as Bitcoin mainly reflects value transactions denominated in Bitcoin, while Ethereum handles transactions for an entire sector.
Messari’s Ryan Watkins said that much of Ethereum’s volume is due to a significant increase in the volume of ERC-20 Stablecoin, with much of the tether (USDT) transfers now being made to Ethereum and the demand for Dai-Stablecoin from MakerDAO increasing supply by over 600%.
He also pointed to the soaring on-chain liquidity of decentralized exchanges, with uniswap and curve together securing over $20 billion last month. DEXs currently account for over 13.6% of the total exchange volume.
Nevertheless, Messari said that “the next twelve months may come to define the platform wars,” and described Ethereum’s persistently high fees as a problem that rival block chains will try to solve, along with “the rise of parallel defi ecosystems.
Technical analysis: ETH price breaks higher
The price of Ethereum (ETH) is currently trading in the green zone at 8.7% as buyers are working to achieve the highest weekly closing since August. More importantly, buyers will be able to force a close above the horizontal resistance line at $395 (the red line), which is likely to allow for more upward movement in the short term.
Ethereum (ETH) Daily Price Chart (TradingView)
As can be seen on the chart, the bulls stopped at the next daily resistance near the $415 level. From these levels, a downward rotation to $395 could occur, providing an opportunity to buy ETH at a solid risk-return level. In this case, $415 remains the first target, while the bulls are likely to push for $446 as their main target in November.
Ethereum is well on the way to becoming the first block chain to process $1 trillion in 2020, double the transaction volume of Bitcoin. The world’s second largest digital asset has also made progress in pricing as it trades nearly 9% higher this week.