Ethereum (ETH): Bulls snap out of hibernation as rally looms

Ethereum value has been dwindling through the entire year. Similarly, its market cap has been heading to the rocks resulting in Ripple’s XRP taking up the second position in the market. The tested the levels close to $100 last week before the buyers pushed for a bounce above $120. However, the declining trendline capped the gains with the trend turning bearish short of $130. The downside is currently supported at $105 while the demand zone at $100 is strong enough to hold and stop further breakdown.

Elsewhere, one of the co-founders of Ethereum, Joseph Lubin recently told users that the network cannot be defined by the market. He added that the market cap does not reflect the success of Ethereum. He reckoned that the growth in decentralized networks is what users should be focusing on besides adoption continues to grow.

“Blockchain is more than a market. It’s a movement. Market cap doesn’t refleft (sic) activity. Decentralized networks are growing. 10 billion daily API requests served by Infura. 1 million Truffle downloads. 1 million MetaMask downloads. 12,000 live Ethereum nodes. 48 million unique Ethereum addresses. 3 times LinkedIn blockchain job openings.”

Meanwhile, Ethereum price is trading below the 2-hour range simple moving averages, which shows that the bears are still control. ETH/USD is changing hands at $111.4 at the time of writing. ETH/USD is trading slightly in the green following a 2.97% rise on the day. The RSI, at 50 percent market is ranging to show that the path of least resistance is upwards sideways. The same is reflected by the MACD which is heading upwards towards the mean level (0.0). For a bull rally to ensue, Ethereum must clear the resistance at the moving averages and correcting above the range resistance at $125.98.

ETH/USD 2-hour chart