ETH/USD: Ethereum will help to overcome the crisis – Vitalik Buterin

     
The creator of the second-largest digital asset believes that Ethereum will help to overcome the upcoming global economic crisis. Speaking at the virtual Ethereal Summit 2020, he pointed out, that the new crisis would not be limited by financial sector. Lack of confidence and conflicts between the governments, citizens and countries. He believes that the blockchain technology will help to mitigate the negative consequences.

He explained that blockchain would play a role of a neutral player that will facilitate the interaction between systems, currencies and applications. 

Buterin compared the current situation with the financial crisis of 2008 that gave birth to Bitcoin. This time the crisis may trigger a new rally on the cryptocurrency market, while coins like ETH may grow in price by solving “non-financial” issues.

He also reminded that cryptocurrencies and blockchains used to solve censorship issues and lack of privacy typical to traditional financial instruments.

ETH/USD: Technical picture

ETH/USD is changing hands at $212.00 amid growing bullish pressure. The second-largest digital asset gained over 3.5% on a day-to-day basis, though it is still in the red zone since the beginning of the day. 

From the technical point of view, the first critical resistance is created by $220.00. Once this barrier is cleared, the upside may gain traction with the next focus on $225.50 ( the upper line of the daily Bollinger Band). On the downside, the price is supported by the upside trendline from March 13 low (currently at $201.00). Once it is out of the way, the downside is likely to gain traction with the next focus on daily SMA100 at $190.00).

ETH/USD daily chart