Technology is rapidly developing and evolving, with the blockchain being one of the latest additions. And while it is still chiefly associated with cryptocurrency trading, researchers currently believe that there are many more ways in which the system could help. For instance, many traders have looked into how to buy crypto currency not just for the coins themselves but also because of the many additional technologies the blockchain offers. It is interesting and exciting for many to interact with tech that has just emerged on the market.
However, the rise of the blockchain won’t be a smooth journey, especially since there are other competing technologies out there as well.
AI
Artificial intelligence is a widely debated topic, with 2023 being the year when discussion became more intense than ever. The introduction of generative programs that can create images, carry on conversations and debates and complete coding tasks has caused many to begin addressing the possible issues that can arise from the use of the technology. The issue of copyright, the possibility of people losing their jobs, the risk of surveillance, the creation of fake news and misleading images that can be contentious or damage the reputation of different individuals are all topics of debate. Some researchers are also concerned that artificial intelligence could be used for malicious purposes, such as to design better cyberattacks.
Vitalik Buterin, the creator of Ethereum, has also recently discussed the existential risks associated with the development of artificial intelligence and whether the Ethereum community is prepared to face them or not. Since the tech is so new, and there was nothing quite like it in the past, it’s challenging to create a comprehensive strategy and determine what exactly would be the best way to respond. This isn’t the first time that the potential risks of AI have been brought into question, as many are concerned about the development of human-like bots.
Buterin previously discussed the need for a solid proof-of-personhood system that will guarantee that people can prove their identities as actual human beings. It is also possible that more regulations will appear in the future as AI becomes savvier and the internet is overrun with bots. The possibility that crypto will stagnate more than it grows in the future, paired with a challenging techno-political landscape, is enough to cause worry and apprehension among many in the crypto landscape.
Yearly high
After a 20% price increase over the past week, investors believe Ethereum could reach a new yearly high. Both the weekly and the daily timeframe RSI have shown clear bullish signals, indicating that an upward movement is gaining strength and becoming more tangible every day. The trend has become noticeable since October 19th, following in the footsteps of the ascending support process.
This signifies a nearly 500-day growth trendline that started during the low lows of June 2022, when the values were around $882. October saw the price bouncing back to a bullish candlestick that negates the previous decreases in the following ones. The last time such an event occurred was in July 2021, fostering the development of the all-time high values of November, when the price point approached $5,000.
The RSI has just moved above the 50 green circles, one of the most well-known bullish signals.
Whale accumulation
Whales, the crypto investors that operate with large amounts of coins, provide considerable indication regarding the health of the market with their movements. Their transactions often make the news in the crypto world, and many traders actually form their strategies based on these movements. On October 24th, the whales withdrew nearly 40,000 Ethereum, the rough equivalent of $68 million, from a well-known exchange.
Only an hour later, a different investor removed about $15 million from the same exchange. Brought together, that amounts to $83 million ETH coins that were released in the span of twenty-four hours. The large movements are worrying for some because they can cause supply shocks, a situation in which there’s not sufficient liquidity to support an asset. As a result, the price climbs and can even spin out of control.
The potential liquidation of Frog Nation CFO 0xSifu could exacerbate this tendency. The account holds roughly $21 million in short positions on perpetual contracts. If the price approaches the $2,000 milestone, liquidation will most likely occur.
Bullish outlook
The market has been in the grip of a strong bear market for a while now, and the crypto winter that ensued has been problematic for most investors. While 2023 brought renewed hope, leading many to believe that the situation will improve and the bulls will reclaim the ecosystem, this was ultimately not the case. Their combined efforts didn’t amount to all that much, and since August, the market recorded considerable losses.
Now, October seems to have remedied the situation, but others are concerned that the sudden surge will be short-lived and melt away as quickly as it appeared. Technical analysis indicates that there’s a bullish divergence within the market. Historically, these trends have predicted the introduction of genuine trend reversals.
The price ended up reaching a descending resistance trendline that has coexisted with the yearly high. If the ETH price succeeds in breaking out, it will ultimately confirm the reversal. If that occurs, the closest resistance area is at the $2,000 area, which is around 10% higher than the current value. It would be a little below the yearly high of $2,141.
The bottom line
Ethereum, the second crypto in the world in terms of market capitalization, remains relatively strong despite the recent troubles. Investors from all over the world know that they can rely on it, even if it’s better to stay cautious for a while. Since the market is still oscillating between different positions and is not yet fully balanced, making any rash decisions would be poor planning.
Instead, you must remember that protecting your portfolio and assets is the surest way to continue seeing returns. When you ensure that the coins and tokens you already have don’t go to waste, you are confident that you’ll see their value grow in the future. They will also enable you to add even more coins to your list. And that’s the way you see growth.
