Billion-Dollar Amazon Endorsement, But Why is Ethereum (ETH) Flat?

  • Ethereum (ETH) prices down 3.5 percent
  • After Elon Musk tweet, Amazon announces a tool that scale blockchains

Amazon now has an Amazon Managed Blockchain tool that businesses can use to create and manage scalable blockchain networks. It is an endorsement of blockchain, a day after Vitalik replied to Elon, listing opportunities that the platform can execute. Overly, this is bullish for Ethereum (ETH), and resulting demand may help lift prices above $190.

Ethereum Price Analysis

Fundamentals

The blockchain community expects a lot from Ethereum, the pioneer smart contracting platform—and rightly so. Apart from improving Bitcoin’s source code and introducing smart contracting, it also opened doors for visionaries and entrepreneurs willing to reap big from Web 3.0.

Blockchain, it is said, will correct the original sin of the internet, and powering this transformation will be smart contracts of which Ethereum and team pioneered.

Presently, the platform may be struggling to scale and being a public blockchain where there are factions demanding consensus before implementation. No one entity controls the network meaning it is in the good books of regulators as a utility.

Perhaps because of this that Amazon is now dipping their toes, experimenting on the blockchain. With a new tool, Amazon Managed Blockchain, available in their management console that businesses can use to “create and manage scalable blockchain networks,” the world’s largest e-commerce platform said Ethereum is “well suited for highly distributed blockchain networks where transparency of data for all members is important.”

Candlestick Arrangement

At the time of press, Ethereum (ETH) is stable but bullish. It is down 3.5 percent from last week’s close, and bears are far from reversing Apr-30 bull bar. Even so, we shall maintain a bullish outlook on price and until after prices edge past $170—the main resistance level—previous support—nullifying bears of Q4 2018 and $190—confirming buyers of early Apr, risk-averse traders should stay on the sideline.

Despite resistance for higher high, risk-off traders can initiate longs at spot rates aware that Apr-2 wide-ranging bull bar did lay out the short-term trend. Placing a Fibonacci retracement tool between Apr-2-8 high low reveals that prices found support at the 78.6 percent correction level.

Therefore, from Fibonacci retracement rules, bulls are likely to retest $190—the first target for aggressive bull traders with stops at Apr-25 lows.

Technical Indicators

Judging from candlestick arrangement, Apr-2 and Apr-25 bars are essential. The latter corrects the over-extension of Apr-3 that confirms Apr-11 liquidation. It is wide-ranging and has high transaction volumes—160k against 99k. From an effort versus result point of view, sellers are in control unless there is a shift of momentum as ETH bulls drive prices above $170 or $190 at the back of high volumes exceeding 160k or 508k of Apr-3.

Chart courtesy of Trading View

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