Ethereum had earlier Suffered A 6% Drop As The Project Prepares For Major Boost In Scalability Issues. The day has seen many coins record losses with Ethereum being one of the biggest losers today before this sudden flash rise in price.
At the time of press, Ethereum has moved from $113 to $133 by over 9% with its 24-hour trading volume just above $3 Billion. Like a couple of other altcoins, the last couple of days have been good for the coin, seeing it soar as high as over $155.
Most of these coins are now in a wave of green and moving by 3% to 10%. Popular coins like XRP and Bitcoin Cash have gained by 3% and 8% respectively.
After a rally from December 24, a correction saw ETH settle around $125 after slipping below $130 yesterday. After hours of stability in the $125 position, today’s bearish momentum saw the coin further slip and fall below $120. Although investors were beginning to take an interest in Ethereum, this slip has been a wake-up call that the market has yet to find stability and support to soar high.
To ensure stability and confidence in the coin, the bulls are finding support quick and now pushing the prices back above $130. In case the bulls are able to regain the market, a bullish scenario will see the coin trade between $140 and $150 in the short term. On the other hand, should the bears persevere, prices might be headed for a $110 position.
Raiden Network Red Eyes Protocol Looking To Solve Scaling Issues on Ethereum
For some time now, Ethereum has notably been having issues with scalability. This could now be a thing of the past following the launch of the Raiden Network Red Eyes protocol. This protocol is just like Lightning Network and will enable Ethereum to process 1 million transactions per second.
According to the announcement, the protocol is an alpha testing release and the developers warn that users should be careful when using it.
Should the project succeed in processing 1 million transactions per second, this could have a massive implication on ETH’s performance in the days to come.
For now, Ethereum will have to continue swinging with the wider market. A position above $130 will remain crucial in the short term if the coin is to rally again soon. Also, a drop below $110 must be avoided at all cost. As noted with the launch of the new protocol, if the market can avoid big slip-ups, the coming year holds much promise for many projects and their cryptocurrencies.
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