• ETH/USD encounters chunky buying pressure late on Friday, jumping over 20%.
  • Ethereum network aiming to process 1 million transactions per second.

ETH/USD has been through very volatile times over the past few days of trading. The pace of a bull run between 16th – 24th December initially looked promising. Expectations here were for a full-on recovery from the bear market seen throughout 2018. However, bulls lost momentum to the upside and the price began to cool after the 24th. During afternoon trading on Friday 28th, a very unexpected surge saw ETH/USD and the rest of the market rocketing higher.

Ethereum Targeting 1 Million Transactions Per Second

Ethereum is aiming to be a leader with their blockchain network, with the scope of being able to facilitate 1 million transactions per second. Above all, the blockchain project which will be helping Ethereum work towards this goal is Raiden Network (RDN).

Raiden Network Capabilities  

Raiden Network has put together a protocol which is known as the “Red Eyes protocol”. They are targeting large scalability in the transfer of tokens on the Ethereum network. It has recently been reported that this protocol has now been made live on the Ethereum mainnet and is in an alpha testing phase.

As covered in their most recent blog post, Raiden Network said,” We are happy to announce that the Raiden Network Red Eyes release is live on the Mainnet of Ethereum. The Red Eyes release is an alpha testing release. It is extremely important to read this post and the security notes carefully before using the software.”

The motivation of the release is for testing of smart contracts and the core protocol on the Ethereum network. Developers will now also be able to top-up, close, open, and settle payment channels. Furthermore, it is suggested that the Lightning Network and now the Raiden Network, have similarities in terms of the way in which they function.

Technical Review – ETH/USD

ETH/USD 60-minute chart. Price action is moving within a range-block formation.

Following the chunky double-digit gains of around 20% late on Friday, ETH/USD has edged lower from those session highs. Looking via the 60-minute chart view, price action has begun to enter a near-term range-block. As a result, this demonstrates that the bulls arr losing momentum and the price could be vulnerable to some downside, before another move north.

ETH/USD 4-hour chart. Price action found support at an ascending trend line.

Lastly, in terms of the 4-hour chart, it can be seen where exactly the price caught support on an ascending trend line. When the price met with this, a huge amount of buying pressure followed, as detailed above with the double-digit gains. It is a critical near-term trend line that should continue to support this push higher. However, a failure to hold can quickly see ETH/USD back to pre-December bull run levels.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

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