Ethereum continues to disrupt the global financial system but ETH price shows weakness


  • Ethereum price is holding new highs, but the recent breakout is lacking investor commitment.
  • Meanwhile, Vitalik Buterin discusses smart contracts and the transparency of the Ether ecosystem.
  • According to Buterin, Bitcoin is like a spreadsheet, but Ethereum is like a spreadsheet with macros.

The Ethereum network is growing stronger over time while prices show that bearish momentum is building up despite its recent breakout. 

Wall Street, bankers, judges, and lawyers replaced by smart contracts

Vitalik Buterin, the founder of Ethereum, said in a recent podcast that smart contracts are getting far more complicated over time. Now, they can actually be used not just to create financial applications but go beyond that. 

According to Buterin, one of Ethereum's most exciting properties is called comparability, where developers can use the protocol almost like Lego blocks. Each block builds on the rest, and the final product in DeFi ends up very advanced in the traditional world.

So the infrastructure that gets built in DeFi and Ethereum, although it's very difficult to build, and it's complex, once a piece is built, it is available to everybody and sort of stacks on to each other almost to create one of those Japanese style Voltron robots that just gains in power.

The Russian-Canadian programmer states that cryptocurrencies like Ether are inherently designed to be "sovereign resistant” because they are stateless, so geographic redundancy is key. Even though some countries like China and India have tried to ban this new asset class, Buterin says that cryptocurrencies are here to stay. 

He also highlighted that the Ethereum ecosystem is transparent, making it easier to understand the rules and be very egalitarian. An environment that is just inherently more open and honest than the traditional financial system.

Ethereum price points to further price consolidation

The near-term outlook for Ethereum price based on the weekly chart is neutral. Volume has not been supportive of the recent breakout, and the Relative Strength Indicator (RSI) is showing a bearish momentum divergence with the most recent price peak.

ETH/USD Weekly Chart

Key to the neutral outlook for Ethereum price is the strength of the 10-week moving average, which currently sits at $1,545. This trend-following indicator has served as key support since October 2020. 

If it were to fail, then the $1,420 price level will be in play and possibly the 50% retracement level of the advance from the March 2020 lows.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin

Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin

Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts. 

More Ripple News

Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock

Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock

HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.

More Hedera News

The reason behind Bonk’s 105% rise and if you should buy now Premium

The reason behind Bonk’s 105% rise and if you should buy now

Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.

More Cryptocurrencies News

Injective price weakness persists despite over 5.9 million INJ tokens burned

Injective price weakness persists despite over 5.9 million INJ tokens burned

Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.

More Injective News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP