Ether is going down, losing around 1.5% on Thursday Aug 30, while trading at $284.47. The crypto previously broke out $298.30 and $294.00, which lead to the bullish trend reversal, says Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
The market tried to buy Ether, but yesterday night it was clear the bears were winning. The crypto first went to the support at $290, and today it is even below $285, while the buyers can do nothing about that.
The traders are watching now what Ether is going to do while trading at $283-$284. If the bears manage to push it further down, the new support will be only at $280. In the short term, Ether may well remain between $280 and $283, if no reasons for buying the crypto out appear.
This, the major support is now at $280, the resistance being at $295. The MACD is slightly rising on D1, but is still in the negatives and does not issue any clear signal. Meanwhile, the Stochastic is in the positives, but is going down, which makes the buy signal weaker than before.
When it comes to fundamentals, an interesting piece of news came from Canada, where the National Research Council (NRC) launched a new Ethereum based app. The app is quite handy for searching and storing information, including that about grants.
The idea is to show how a blockchain based app may work. If it goes well, other government structures and authorities will also be going to use it. One of the key benefits for any institution launching an information storing app is the reduced risk of any external attacks. This may become the number one reason for using blockchain in the future.
While Ether is heavily going down lately, its mining is still very profitable, says Brian Venturo, Atlantic Crypto founder. It costs around $152 to mine one Ether coin, which is nearly twice as cheap compared to its price in the market. Venturo’s calculations are based on the electricity costs in US and other countries’ homes; meanwhile, the kWh cost may vary a lot from state to state and, moreover, from country to country. Thus, in some cases, the electricity is so cheap that the cost of mining 1 Ether is no more than $50, and miners are happy to relocate to such countries and regions.
Some interesting news regarding Ethereum are coming soon, too. Thus, on Aug 31, the developers meet to discuss crypto inflation and the amount of the rewards per block. The coin holders wanted the management to lower the reward from 3 to 1 ETH.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.