Ethereum price analysis: Dancing at the edge of a cliff; Vitalik Buterin agrees – ‘collapse of ETH is inevitable’


  • Buterin agrees with the author of the Tech Crunch article saying “In Ethereum as it presently exists, this is absolutely true.”
  • Ethereum is trading below the 100SMA (15-minutes chart) while the upside is locked below the 23.6% Fib retracement level.

Ethereum witnessed an incredible rise during the weekend. There was a graceful upward movement using the support at $284. Ethereum price stepped marginally above $300 but turned bearish on trading highs roughly at $302. The buyers appear to have left their mojo behind as they ushered in this week’s trading. Ethereum has been trading lock-step with most of the movement being to the south. The crypto has canceled the gains to the extent of testing the support at $284 (September 1).

Meanwhile, the Ethereum community was perturbed by an article that was recently published on Tech Crunch titled ‘collapse of ETH is inevitable.’ This triggered many questions and doubts but the co-founder of Ethereum, Vitalik Buterin responded to them in a post where he surprisingly agreed with the author of the article, for now. The author, Jeremy Rubin said that the price of ETH is on the verge of collapsing and Buterin agreed in a post on Reddit, “In Ethereum as it presently exists, this is absolutely true.”

Jeremy argues that the crypto has issues with scaling and smart contract security. In addition to that, it is incapable of competing with other players in the market. He continues to say that these are some of the issues that will result in the collapse of Ethereum by a process he referred to as “economic abstraction.” Vitalik further agreed by saying “[A]nd in fact if Ethereum were not to change, all parts of the author’s argument […] would be correct.” He however added:

“…all parts of the author's argument (except the part about proof of stake, which would not even apply to Ethereum as it is today) would be correct.”

Ethereum is trading below the 100SMA (15-minutes chart) while the upside is locked below the 23.6% Fib retracement level. Technical indicators are showing negative signals but a short-term support is being established at $286. Another support is highlighted at $280 but the primary support rests at $250 (August 14).

ETH/USD 15-minutes chart

 

 

 


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