While the price of Ethereum has been in the $1,200 range for days, bullish news is now coming from Visa. The global credit card provider has announced its intention to offer automatic and recurring payments to its customers. Ethereum technology could play this decisive role.
Automated blockchain payments using Ethereum technology
In the future, Visa plans to enable its customers to manage and automatically execute regular payments such as electricity, telephone or Streamig subscription through the blockchain. Once one of these payment plans is created, the customer does not need to worry about anything anymore. To do this, they can set up a whitelist of pre-approved automatic payments, which no longer require approval. Using blockchain technology, Visa automatically transferred the corresponding amount from the customer’s wallet to the corresponding billing account.
Visa wants to bring a payment system to the blockchain that is already known from traditional banking. Until now, however, there has always been a need for a third party in the form of the responsible banking institution to process the payment. In the future, this situation could be omitted through blockchain transactions and the payment could be validated with Ethereum technology automatically.
US Bitcoin WOMEN?!? (Visa Plans to Integrate Ethereum) https://t.co/DxZWtC9MDM
— Ben Armstrong (@Bitboy_Crypto) December 20, 2022
Visa is also planning its own wallet for customers
Visa plans to use an Ethereum concept called “Account Abstraction – EIP-86”. This idea from Ethereum founder Vitalik Buterin sees user accounts on the Ethereum blockchain working like smart contracts. Visa’s statement reads: “This means that instead of hard-coding into the Ethereum protocol the validity terms of each transaction in a generalized way, the validity terms can be programmed into a smart contract per account in a customizable way. “
This plan seems like a logical step for Visa, as the company has been dealing with blockchain technology for some time. It was also announced that Visa has registered trademark rights that represent the introduction of its own wallet to its customers. Visa was originally on board with the now failed project for Facebook’s own cryptocurrency with the working title Libra, or later Diem.
However, the credit card provider made it clear in its announcement that there is still a long way to go before the proposed project can be put to practical use. To achieve the goal, Visa is working with external Ethereum developers. In addition to the implementation of the self-management wallet, it is also about improving the ability and speed of transactions.
The announcement could be a milestone for the Ethereum network. Because if Visa really uses the technology of the network for its customers, this would mean a huge influx of new participants in one fell swoop. Visa has hundreds of millions of customers worldwide and generates billions of dollars in annual revenue. This makes Visa one of the top 20 listed companies in the world.
Ethereum course not responding to Visa news
Despite this bullish announcement, Ethereum price has not yet accepted the news and is still in a consolidation phase around $1,200. Although the price has recovered slightly from the previous week’s lows at 1,160 dollars, one cannot speak of a true uptrend here. As of December 14, ETH/USD was trading above $1,350, down about 10 percent in a week.
What to expect for the price of Ethereum in the last days of 2022. Is there still a small recovery rally that lays a good foundation for the beginning of 2023? Or will there be another correction that will bring ETH/USD back towards the important $1,000 mark? Technical chart analysis can provide clues to possible short-term price targets for Ethereum price.
Danger on the daily chart: a 21 percent correction is imminent
The small 1-hour chart of ETH/USD shows that the Ethereum course is in danger. The cryptocurrency could form a bearish head and shoulders pattern that could lead to a sharp correction. If ETH/USD fails to scale significantly above $1,235 in the coming days, breaking the left shoulder high of November 26, 2022, this scenario is much more likely.
In the next step, however, the price would have to fall below the important support line of this potential formation at $1,155. A confirmed correction retesting this support to new resistance could give ETH/USD a $958 technical price target. This was a significant reduction of more than 21 percent compared to the current price.
On the other hand, if ETH/USD manages to break through the $1,235 mark, the next resistance will only be in the $1,300 area. So the price could rise a good 5 percent before the next directional decision is made. As long as ETH/USD does not also confirm the $1,350 level as support, where the rate was rejected on December 14, a bearish double top is still in place. Even with this chart formation, ETH/USD could fall to the sub-$1,000 technical price target in the coming weeks. Maybe even in 2022.
A Bullish Ethereum price target could take it above $4,000
In the meantime, however, there remains significant support around $1,075. If ETH/USD manages to hold this level, the price could form a bullish double bottom from this level. On November 10, 21 and 22, this support could be used for a small upward movement. For this “W pattern” to be valid, the price must break the resistance at $1,350 in the next step. If so, the formation could reach a technical price target around $1,630 for Ethereum.
In the short term, various bullish and bearish price targets are still possible for ETH/USD. The daily chart is also interesting: it shows that the price failed to break through a descending resistance line, which ETH / USD has been below since November 2021. The price is currently trying to break this resistance again. If the course fails again, the next sell-off could come down to the support area at $670.
In this falling wedge chart pattern, ETH/USD can theoretically hold until March 18, 2023 before a directional decision must be made. If the breakout is successful to the upside, the technical price target is between $4,600 and $3,900 depending on the timing of the breakout.
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