At press time, Ethereum is trading at a price point of 224.03, thus showcasing a mere 2% drop in its intrinsic value since yesterday afternoon. Even though the premier digital asset has been showcasing a stagnating economic trend over the course of the past 7 days, Ether’s total market cap has remained at a strong $23 Bln.
Technical Outlook
As can be seen from the chart below, Ether’s support line currently lies at the $210 mark. Over the course of the past week or so, the currency has been constantly trading over $230 but has failed to maintain its bullish momentum.
With that being said, Ethereum’s upside movement has been protected by the $229-230 zone. Additionally, a Fibonacci retracement level of 61.8% has also acted as a resistance. If there is a downside break below the channel support, the price of Ether could dip even further and start to move closer towards the $220 and $214 support levels.
Compound Launches Money Market Protocol on Ethereum
Earlier yesterday afternoon, San Francisco-based Compound, announced via a blog post that the firm was set to launch an all-new Ethereum-based lending platform. As per the post, the new monetary protocol has been built atop the Ethereum blockchain and has been designed to allow individuals, institutions, and applications to “frictionlessly earn interest on cryptographic assets without having to negotiate with a counterparty or peer”.
To further elaborate on the intrinsic functionality of Compund’s latest offering, the protocol will allow customers to procure digital assets using a dynamic borrowing rate that floats in real-time as market conditions adjust.
Lastly, in its current iteration, Compound is offering users with a total of 4 unique digital assets including:
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ETH
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BAT
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REP
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ZRX
Lastly, it is worth mentioning that Compound is releasing its latest financial offering only after conducting a thorough audit of the protocol. The external audits were carried out by ‘Trail of Bits and Certora’.
Final Take
For a couple of days, it looked as though Ether was primed to make an impressive market push soon. However, with the price of the digital currency stagnating for the seventh day running, it is now unclear as to what the future really holds for ETH.
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