Ethereum needs to tackle scalability issue to hold the leadership

  • Ethereum’s deficiencies create opportunities for new projects.
  • ETH/USD needs to stay above $220.00 to get a chance for an extended correction.

Investor and Cryptocurrency researcher Qiao Wang warned that Ethereum might lose its leading position if it fails to roll out ETH 2.00 update and tackle the scalability issues. The expert believes that Ethereum’s high fee charges and often network congestion create opportunities for innovative projects to flourish.

I’ve changed my mind after using a dozen of Defi platforms. So long as ETH 2.0 is not fully rolled out, there’s an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX.

Previously he said that platform that tried to imitate ETH business model were doomed to fail as they did not have Ethereum’s network effect. He also urged the newcomers to come up with something innovative instead of trying to “kill Ethereum”.

ETH/USD: Technical picture

ETH/USD is changing hands at $222.80, down nearly 1% since the start of the day. The second-largest digital asset has the current market value of $24.9 billion and an average daily trading volume of $6.3 billion. ETH/USD tested the low of $216.37 on June 27 and recovered towards $223.00 by the time of writing. The coin has been moving in sync with the market.

The local resistance is created by the daily SMA50 at $224.00. Once it is out of the way, the upside is likely to gain traction with the next focus on $230.00 and $232.70 (the middle line of the daily Bollinger Band).  a sustainable move above this area will allow for a stronger upside move towards $240.00 and $250.00 this barrier is reinforced by the upper line of the daily Bollinger Band. Also, it served as an upper boundary of the previous consolidation channel that limited the recovery in the beginning of June.

On the downside, the local support comes at $220.00 and the lowest level of the previous week at $216.37. If the price moves below this area, psychological $200.00 may come into view. 

ETH/USD daily chart