Ethereum Highly Bullish And Primed To Surge Towards $220
Ethereum is trading in a bullish zone above the $195 level against the US Dollar. ETH will most likely clear the $200 resistance for a run towards the $220 level.
- Ethereum is showing a lot of positive signs above the $195 support zone.
- The price is currently attempting an upside break above the $200 resistance area.
- There was a break above a major contracting triangle with resistance near $197 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could surge above the $200 barrier and test the next hurdle at $220.
In the past few sessions, Ethereum price remained in a broad range above the $190 level against the US Dollar. ETH bears made a couple of attempts to push the price below the $190 and $188 support levels, but they failed.
The last swing low was formed near $188 before the price regained bullish momentum. It climbed back above the $190 level and the 100 hourly simple moving average. The bulls were able to clear the $195 hurdle for a trend reversal.
Moreover, there was a break above a major contracting triangle with resistance near $197 on the hourly chart of ETH/USD. The pair even surpassed the 76.4% Fib retracement level of the downward move from the $200 swing high to $188 low.
Ethereum is now trading near the $200 resistance and attempting an upside break. If the bulls gain strength, the price is likely to continue higher. An immediate resistance is near the $208 level since it is close to the 1.236 Fib extension level of the downward move from the $200 swing high to $188 low.
Any further gains above $208 could lead the price towards the next key resistance near the $220 level in the near term. An intermediate resistance for Ether may perhaps be $212.
If Ethereum continues to struggle near the $200 resistance, there could be a downside correction. An initial support is near the $195 level and the triangle lower trend line.
The next major support is near the $193 level and the 100 hourly SMA. To start a substantial decline, the bears need a clear break below the $190 and $188 support levels.
Hourly MACD – The MACD for ETH/USD is currently gaining strength in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 55 level.
Major Support Level – $193
Major Resistance Level – $200
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Author: Aayush Jindal
tBTC has Launched: A Tokenized Bitcoin Project on Ethereum
Matt Luongo, the founder of Thesis, announced the news, which showed him deploying the smart contracts for Keep Network, an Ethereum layer that enables tBTC to operate
Decentralized finance — better known as “DeFi” — has seen exponential growth in popularity over the past two years. Despite recent setbacks in the form of hacks and typos in smart contracts, DeFi is a sector of the crypto market that has become so important that Coinbase said the following about it:
DeFi, or decentralized finance, is an essential part of an open financial system. DeFi tools are censorship-resistant, unbiased, programmable, and available to anyone with a smartphone.
Thus far, DeFi has involved Ethereum, and Ethereum only. This meant that Bitcoin — largely regarded as the “reserve asset” of the cryptocurrency market — has been largely left out of the DeFi equation.
It’s an issue that many say is holding back DeFi’s growth, as the introduction of Bitcoin would increase a lot of functionality into smart contracts and would likely much on-chain finance much more appealing to a wider userbase.
Earlier this month, Thesis — the development studio behind Bitcoin consumer app Fold — revealed that it had raised $7.7 million in a round led by Paradigm Capital, with other venture funds chipping in.
The funds were for Thesis’ new flagship project: tBTC, an open-source project led by Thesis and Summa working to create a decentralized representation of BTC on Ethereum.
While the project has been known for months, only yesterday, April 27th, did it go live.
Matt Luongo, the founder of Thesis, announced the news with the tweet below, which shows him deploying the smart contracts for Keep Network, an Ethereum layer that enables tBTC to operate. Luongo says it may take a few weeks for the project to come 100% online for public use.
Day 0 @keep_project. pic.twitter.com/CBVo3VUeIs
— Matt Luongo (@mhluongo) April 27, 2020
Unlike the tokenized Bitcoin competitors to tBTC, which are relatively centralized as they require custodians to maintain the coins, tBTC allows any owner of BTC to deposit their coins into a designated secure address, then receive newly-minted tBTC in an Ethereum wallet of their choice.
Importantly, tBTC isn’t the first attempt to tokenize Bitcoin on Ethereum. But the competitors have recently been shown to have disadvantages.
For one, a hacker managed to utilize a compatibility error with imBTC, a China-focused representation of Bitcoin that is based on the ERC-777 standard, to hack DeFi protocol Lendf.me.
Also, Huobi Bitcoin — Huobi’s BTC token — was stolen during the attack, but then was subsequently returned by the hacker. It was a surprising move that many attributed to the fact that HBTC is only redeemable on the Huobi exchange, which is a centralization risk that in this case turned out well for Lendf.me victims.
Although there is a myriad of use cases for tBTC, an initial use case for the Bitcoin token will be to be added to MakerDAO as a collateral option for the DAI stablecoin.
This is important because for the past six weeks since the March 12th market crash, DAI, which normally trades at $1.00, has had a consistent 1-4% peg to the dollar, with the premium at one point reaching upwards of 20%.
The integration of tBTC, which will need to be approved by holders of the MKR token in the coming weeks, will likely reduce some of the strain on DAI demand, thus dropping the premium.
It’s a move that has already garnered support from the MakerDAO community, which has whitelisted tBTC to be added as a DAI collateral option in the future.
Although Ethereum investors are over the moon about this move, not everybody is convinced of tBTC.
In response to the discussion about tokenized Bitcoin projects, Joe007 — a prominent cryptocurrency trader that has bagged dozens of millions of profits as per official Bitfinex data — lambasted the idea of allocating Bitcoin to Ethereum, calling DeFi a “Rube Goldberg machine where you never know which part fails or gets hacked next.”
Author Nick Chong
Since 2013, Nick has shown interest in Bitcoin and cryptocurrencies. He has since become involved in the industry as a full-time content creator, working for NewsBTC, Bitcoinist, LongHash, among other outlets. Aside from covering the news, Nick is a Creative at Taiwanese technology company HTC. Contact [email protected]
Author: By Nick Chong
Market Wrap: Bitcoin’s Price Tear Suggests It’s FOMO Time Again
Apr 29, 2020 at 21:19 UTC
There’s an old saying on Wall Street that financial markets are driven by two emotions, fear and greed. In the crypto markets, the driver is often a combination of the two: fear of missing out.
The FOMO, as it’s often called, looked strong Wednesday as bitcoin jumped to its highest levels in nearly two months, rising as high as $8,900 while a buoyant stock market shrugged off bad economic data.
At press time, the world’s largest cryptocurrency by market capitalization was up an eye-catching 14% over 24 hours at $8,851, well above the 10-day and 50-day technical indicator moving averages, signaling extreme bullish sentiment.
Crypto stakeholders continue to talk up the upcoming halving, an event that happens as often as the Olympic games or a U.S. presidential election, and for many bitcoiners is more important than either.
Around May 12, the amount of new bitcoin mined every 10 minutes or so will drop by 50%, a regular scheduled adjustment that was followed by price increases in 2012 and 2016. Possibly in anticipation of history repeating, in the past five days bitcoin has logged 21% price appreciation.
“The media coverage of the halving over the last five months, combined with continually increasing Google search volume for ‘bitcoin halving’, suggests that we may see similar FOMO around the upcoming halving event,” said Danny Kim, head of revenue for crypto liquidity provider SFOX.
Beyond any herd mentality, market participants noted the environment today is very different than during the first two halvings.
“This halving is taking place in a much more volatile, uncertain macroeconomic environment than all past events,” said Charles Cascarilla, CEO of stablecoin provider Paxos.
Trading activity spiked Wednesday, nearly overwhelming servers at U.S. cryptocurrency exchanges Coinbase and Kraken, which suffered brief outages.
Coinbase leads major USD exchange volume in 2020 with three $200 million trading days in April.
The S&P 500 index climbed 2.6% in trading Wednesday despite poor GDP numbers showing the world’s largest economy contracted for the first time in six years.
Stocks’ ascent helps bitcoin but there’s likely a limit to the upside, said Josh Rager, a crypto trader and founder of learning platform Blackroots.
“Personally, I don’t know if bitcoin can hit $10,000 but I think as long as the stock market performs well it will continue to have a positive impact on bitcoin,” Rager said.
March’s market bloodbath led to volatility in the S&P 500: Three top-20 record low days and two top-20 record high days in performance for the index that month.
However, April has been all about rebounding for the S&P 500 as government stimulus measures abound. More coronavirus relief is expected to be on the way with U.S. first-quarter annualized GDP numbers down 4.8%, the first quarter-to-quarter decline since 2014.
Big-time winners include ethereum classic (ETC) up by 11%, eos (EOS) gaining 9% and bitcoin sv (BSV) climbing 6%. All price changes are as of 21:00 UTC (5:00 p.m. EDT).
Oil is seeing a price rebound Wednesday, up 15% as of 21:00 UTC (5:00 p.m. EDT). Oil output is down and futures on the fossil fuel headed higher, a positive development after the commodity’s two-month bout of high volatility.
Gold traded up less than a percent Wednesday and closed the New York trading session at $1,710.
The Federal Reserve on Wednesday said it would hold benchmark U.S. interest rates close to zero while pledging to continue buying assets in an unbounded amount to help keep global markets functioning smoothly.
The central bank, led by Chairman Jerome Powell, said it would maintain the target range for its short-term lending rate at 0% to 0.25%, “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price-stability goals.”
U.S. Treasury bonds were mixed on the day. Yields, which move in the opposite direction as price, were down on the 2-year, in the red 8.6%.
Europe’s FTSE Eurotop 100 index of largest companies in Europe ended its trading day in the green, up 1.3% on positive news regarding a potential coronavirus medical treatment.
In Asia, trading in Japan was closed Wednesday for a local holiday. The Shanghai Composite and the Hong Kong Hang Seng index were both up less than 1%.
Author: Omkar Godbole
Data Shows Ethereum Is Better Money Than Bitcoin
- Analyzing the top 10,000 ETH addresses shows that Ethereum has significant transaction volume, compared to that of Bitcoin.
- 16% of the Ether in circulation has been actively used in the past 90 days, compared to just 0.36% for Bitcoin.
- More than half of Bitcoin hasn’t moved in a year. A fifth hasn’t moved in over four years.
A look at over 10,000 Ethereum addresses shows that a much greater proportion of Ether actively circulates between payment processors, compared to similar figures for BTC.
With Ethereum 2.0 on the way, the question of the network’s liquidity and practicality has loomed over the crypto industry. A recent analysis by a professor of Information Science at Conestoga College may provide some clarity on the matter.
Professor Adam Cochran analyzed the top 10,000 ETH addresses to find trends in how people interact with the Ethereum network. Cochran detailed the findings of his audit, which yielded some startling results.
In the mess of data one finding stood out—Ether is actually being used as money, contrary to what some vocal Bitcoin proponents have argued.
To do this, Cochran first estimated the true amount of ETH currently in circulation. He did this by deducing what proportion of ETH is believed to be lost or frozen, and further discounted funds that belonged to exchanges.
According to his analysis, roughly 9% of ETH is inaccessible, putting the true amount of Ether in circulation around 100 million.
Cochran then analyzed the amount of ETH in circulation that has passed through a payment processor, payment gateway, or smart contract in the past 90 days to estimate the proportion of coins that are being actively used.
With the exclusion of exchanges and multi-sig transactions, 16.2 million ETH is currently in “active circulation.” This, according to Cochran, means that Ether is regularly used both as money and as gas to power the network.
Although staggering on its own, the number becomes truly remarkable when compared to Bitcoin’s statistics.
Over half of all Bitcoin hasn’t moved in over a year. One in five Bitcoins hasn’t moved since 2015. Only 0.36% of Bitcoin, or about one in 280, has been through a payment processor in the past two years, said Cochran.
When it comes to usage as money, Ether is 440 times more transacted than Bitcoin. This demonstrates that Ethereum is regularly used to facilitate real-world transactions.
“ETH is money,” plain and simple, Cochran concluded.
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Author: by Priyeshu Garg