Ethereum ETH
Ethereum (ETH) and Polkadot (DOT) have grown to become two of the biggest blockchain projects in the world. This year alone, the Polkadot price has jumped by more than 360%, bringing its total market cap to more than $34.4 billion. In the same period, Ethereum price has gained by 120%, bringing its total market cap to more than $180 billion. The two are now the 6th and second-largest cryptocurrencies in the world.
Ethereum and Polkadot have a relatively close relationship. In fact, DOT was started by Gavin Wood, a British computer scientist who also co-founded Ethereum. The two platforms have the similar goal of empowering developers to build decentralized apps. On this, Ethereum is the biggest platform, powering most of the biggest Decentralized Finance (DeFi) projects in the world.
Still, there is a difference between the two. For one, Ethereum enables developers to build and test their apps using smart contracts. On the other hand, Polkadot gives them the ability to create apps that can communicate with other ledgers through a relay chain. While Polkadot is a relatively new project, it has attracted hundreds of major developers like Acala Network, Advanca, Airgap, and Akropolis, among others. Still, Ethereum projects like Maker, Aave, and Uniswap dominate the DeFi ecosystem.
The daily chart below shows that the Ethereum price has been generally in an upward trend. It has also formed an ascending channel that is shown in black. Last week, it moved below the lower line of the channel and tested a low of $1,270. In the past few days, it has been attempting to rejoin this channel.
While I am generally bullish on ETH, I am cautiously optimistic at this stage. In technical analysis, after a breakout, it is common for the price to retest the previous pattern and then resume the breakout trend.
Therefore, in my view, another bullish trend will be confirmed if the Ethereum price moves above $1,800.
On the daily chart, we see that the Polkadot price reached a high of $42.18 a few days ago. It then pulled back as part of last week’s sell-off. In the past few days, it is attempting to rebound and retest the previous high. The price has also formed a small rounded bottom pattern. Therefore, I predict that the price will retest $42.18 and possibly break-out higher.
