Ethereum Catches Fire Amid Broad Rally in Digital Currency Market

Ethereum leaped to one-month highs over the weekend, as a relief rally swept the digital currency market following a volatile start to the month.

ETH/USD Price Levels

Prices climbed above $270.00 an ether on Sunday before paring gains later in the session. At the time of writing, the ETH/USD exchange rate is down nearly 5% at $259.00, according to Bitfinex. Even with the latest pullback, that represents a gain of 30% over the past seven days. Based on its current value, ethereum is capitalized at roughly $24.3 billion.

From a technical perspective, the ETH/USD faces immediate resistance at $280.00. On the opposite side of the spectrum, the $230.00 region represents the inflection point sustaining the latest rally.

Technology Outlook Lifts Ethereum’s Value Proposition

Analysts expect big things for ethereum in the near future, as infrastructure innovations boost privacy and transaction capability in the world’s No. 2 digital currency. Although the ethereum network already handles twice as much transactions as bitcoin, the Raiden Network payment channel is looking to increase processing capability manifold. This will not only increase the number of transactions per second, but lower transaction costs significantly as a result.

Ethereum’s research team is also collaborating with ZCash to better address privacy on the blockchain. The focus of their collaboration is to address the “combination of programmability and privacy in blockchains,” according to the Ethereum Blog. This will allow transactions to become completely anonymous, a feature that will also apply to certain aspects of smart contracts.

Bull Market Resumes

Capital is flowing back into bitcoin after last week’s relatively uneventful chain split. With the SegWit activation in the rear view mirror, bitcoin prices soared to record highs over the weekend. This is significant from the perspective of ethereum and other digital currencies, which often take their lead from bitcoin.

At last check, bitcoin was trading well above $3,200.00.