Traders Fleeing The Market Left Ethereum Trapped Beneath Key Levels
Traders fleeing the market left Ethereum trapped beneath the key levels along with many other cryptocurrencies. It still remains trapped beneath the key resistance level but analysts are cautious about getting bullish on ETH until this level is overcome. This comes since the interest in crypto is increasing which shows that traders fleeing the market make the price movement driven by retail investors as per the Ethereum news and analysis that we have today.
ETH saw some slow price action over the past 12 days and hovered above the $210 price, consolidating after the recent volatility. The price action seen by ETH over the past week was quite bullish than seen by Bitcoin and other altcoins as it posted a huge retrace from the multi-day highs which ended up degrading the market structure. It seems that the cryptocurrency could be trapped beneath the crucial technical level and it could struggle to match the momentum seen by the benchmark cryptocurrency if it doesn’t overcome the level.
Ethereum is trading under the 1 percent from its previous price level, reaching a price of $213 which marks a slight increase from the multi-day lows of $198 but a slight retrace from the previous high of $230 which was set at the peak of the rally. The rejection from this level led the price of ETH underperforming against Bitcoin which is why the cryptocurrency is trading from the multi-day high of $9,500. While looking at the ETH/BTC pair, it seems that the pair remains trapped beneath the key resistance level of 0.025 BTC.
Short term bearish
Mid term – wanting to see price maintain higher low structure to continue bullish bias
Blue arrow short entries. pic.twitter.com/G5xf6XTWGC
— TraderXO (@TraderX0X0) April 27, 2020
One popular crypto analyst on Twitter explained the importance of the level in a recent tweet, explaining that this could determine the mid-term market structure for Ethereum:
“ETHBTC: Short term bearish. Mid term – wanting to see price maintain higher low structure to continue bullish bias. Blue arrow short entries.’’
The trend to be aware in the near-term is that the ETH price action seems to be guided by retail investors and spot traders. The volatility of the asset has been declining which signals that the traders are no longer waiting for the two major cryptocurrencies to have a price correlation. SKEW, the analytics firm noted:
“Implied volatility of ether relative to bitcoin has also reverted to the same level following a macro period where market participants expected assets to increasingly have identical daily performances.’’
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Stefan is a full-time member and has been a Bitcoin Specialist for over 6 years. Providing daily news and updates for DC Forecasts.
1 day ago
May 1, 2020
One analyst is in the cryptonews today for suggesting that staking may trigger a bull run for the price of Ethereum (ETH) in the near end. But how would an Ethereum 2.0 staking upgrade do this all on its own – generating this amount of demand? The truth is, Ethereum 2.0 is something that is coming and we can see how the project has dragged its feet lately. However, when the launch is announced (which will probably be in July), the biggest altcoin out there (ETH) will be transformed from a no-frills proof-of-work protocol to a fully fledged staking platform. After this, instead of competing against each other to solve puzzles, the users who accrue the most wealth or stake will be in charge of validating transactions. This is the fundamental Ethereum 2.0 staking upgrade which some experts believe could catalyze a major bull run for Ether (ETH). One of them is a partner at MetaCartel Ventures DAO, Adam Cochran. In the latter half of April, Cochran composed a 50-tweet-long rationale for the ETH 2.0 project, rendering one of the biggest “economic shifts” society ever witnessed. https://twitter.com/AdamScochran/status/1255338551182536704 Cochran went on stating that not that much ETH can stake first round which is why he predicted staking returns of 17% early on this year. He spoke about how whales are accumulating and miners are doing that too, and how ETH is as decentralized as Bitcoin and how ETH founders still hold most of their ETH. https://twitter.com/AdamScochran/status/1255338553850114050 While that my wishful thinking, the analyst is on firmer ground when he suggests that staking could drive an Ethereum supply shock and a higher ETH price. In short, Cochran believes that dependable staking rewards of 3% to 5% will attract capital from large investors until around 30% of the total supply is locked up. Cochran basically theorizes that supply shock will create fear-of-missing-out (FOMO) buying among retail investors who are not interested in technical analysis and basically “just want in.” Unlike the 2017 bull run where getting fiat in an exchange was a headache, the FOMO could be amplified because it is now significantly easier for new people to buy crypto with fiat on exchanges like Binance (popular category: Binance news). This is why the analyst believes that the Ethereum 2.0 staking upgrade will bring many novelties to both new and established investors in the space.
2 days ago
May 1, 2020
A new analysis is in the crypto news, going through the top 10,000 Ethereum (ETH) wallet addresses and suggesting that the world’s second largest cryptocurrency by market cap could potentially see its value increase significantly in the foreseeable future. As we can see, the Ethereum price might be manipulated by large crypto exchanges and whales – and see its value increase again in the near future. However, the bad side of the story is that there are several questionable practices which are being carried out by a few leading crypto asset exchanges as well as certain ETH whale accounts (addresses which hold very large amounts of the digital currency). The author of the report, Adam Cochran, points out that when Circle Internet Financial first acquired the Poloniex exchange in February 2018, he had transferred virtual assets into high security cold storage wallets and maintained strong or adequate reserves. However, when the exchange was later purchased (for $400 million) by a select group of crypto industry participants which included the Tron founder Justin Sun, it was speculated that a lo of the assets were removed from the cold wallets – becoming fractional reserves. This is why the Ethereum price might be manipulated by whales. As the report shows, the cold or offline cryptocurrency wallets seem to have only transferred funds to digital currency exchanges that list Tron (TRX) which is a top 20 digital asset by market cap. Also, this activity led to a considerable 50% increase in the TRX price and a significant increase in the number of people buying this digital token. The author of this report is now viral in the ETH news, going on to reveal various tactics used by a dozen crypto whale accounts which are apparently manipulating the fragile cryptocurrency market. He also claimed that this may be done in coordination with the exchange Bitfinex and may also involve another leading derivatives trading platform, BitMEX. So, whenever the crypto market crashes, these whales are able to make quick profits on their short positions, and then buy back ETH again at significantly lower prices. Currently, the ETH price in the latest Ethereum news is at $213 with a 2.61% decline overnight. It is expected for ETH to retrace a bit before making another move to the zone upwards.
3 days ago
April 30, 2020
Ethereum’s 150% rally is about to reverse according to the latest fractal analysis that we have in our ETH news today. The asset performed quite great in the past seven weeks especially since it rallied after the Black Thursday. Since the $88 low, Ethereum’s 150% rally happened and reached a high of $228 earlier today at the local peak of the rally. Many of the traders believe that this is only the start of another bigger move citing that the technical strength of the uptrend in Ether is present. The fractal analysis by a crypto trader and other factors, predict that Ethereum’s 150% rally will soon run out. The crypto market seems irrational as some may be seen but the market can be analyzed through a variety of different means. According to a leading crypto trader, one such indicator is the fractal that repeats a historical price action over the other time frames and with other assets. to prove this, he shared a chart that shows how Ethereum’s chart from December looks similar to the XRP price action in 2018. The chart suggests that this fractal should play out totally as Ethereum will likely crash to fresh yearly lows by the end of this year. The fractal analysis receives a lot of attention from the skeptics as they claim that it is irrational to expect the assets to show repeating patterns on a few occasions because of the sample sizes which is the existence of the coincidences and the sentiment that the charts can be manipulated to fit the fractals. The trader made it clear that he believes that the fractals are a valid form of analysis for Ethereum explaining in the chart below:
The bearish outlook for ETH comes as analysis has suggested that the price of ETH could embrace the stablecoin project such as the Tether USDT and USD coin which present a long-term threat to the value of ETH. The continued rally in Bitcoin price could stop the correction of Ethereum while a crash in BTC could enable the bearish scenario. The ETH holders and analysts are optimistic about the prospects of BTC moving forward from both fundamental and technical perspectives. A report analyzed by Ryze explained that the fiat regime is being pushed to new extremes with money printing negative interest rates meaning that there is a potential for more inflation and potential for alternative coins to grow more.
4 days ago
April 29, 2020
The ETH price goes over $205 as we speak and many analysts are now bullish about a potential next stop at $220 for Ethereum. While trading in a bullish zone, the cryptocurrency will most likely clear the $210 resistance level soon and initiate a run towards $220. Now that the Ethereum price shows a lot of positive signs above $205, the price is currently attempting an upside break above $210 and remains in a broad range above these levels. Even though the ETH bears made a couple of attempts to push the price below the $190 and $188 support levels, they failed. The last swing low was formed near $190, just before the crypto news showed that ETH is primed for another run in the peak of its bullish momentum. This is how the price of the coin swept through the $200 mark and proved that it has a lot more potential. The last swing low was formed near $188 before the price regained bullish momentum. This is when ETH climbed back above the $190 level and the 100 hourly simple moving average. The bulls made sure to clear the $195 hurdle for a new trend reversal. As we can see while the ETH price goes over $205, there was also 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 a $200 high to a $188 low. Now, the ETH price goes over $205 and is attempting a new upside break. If the bulls gain strength, the Ethereum today’s news could definitely show more gains in the near end. An immediate resistance is near the $208 level since it is close to the Fib extension level of the downward move from a $200 high. The key $220 level is now being watched by everyone and an intermediate resistance for Ether may perhaps be $212. In the case of struggles, if ETH price goes over $210, it will likely correct. The support is now positioned near the $200 level (whether above or below it) and the bears need a clear break below $202 and $201 in order for that to happen. The technical indicators for the Ethereum price are now as following:
- 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
Author: Published 9 hours agoon May 2, 2020By Stefan
Analysis: Ethereum is being bought by IBM, Microsoft, other Fortune 500 companies
Over the past few weeks, it has been clear as day that retail investors — people like you or myself — have been accumulating Bitcoin, Ethereum, and other cryptocurrencies.
We have reported within the past days that the active users of both Bitcoin and Ethereum have started to rocket, despite March’s crash.
Simultaneously, data from blockchain analysis startup Glassnode has found that the number of addresses holding 0.1 to 100 ETH and 0.01 to 1 BTC — addresses affiliated with retail investors — has grown dramatically over the past two months.
It’s a trend indicating that retail investors are buying the dip in the cryptocurrency market, accentuated by BTC’s 20 percent performance just the other day that was largely predicated on strong buying volume from Coinbase, Binance, and other retail exchanges.
But according to a new analysis, some massive institutions — like recognizable names like IBM Blockchain and Microsoft — are accumulating cryptocurrencies as well.
But the cryptocurrency they’re known to be accumulating may be unexpected: Ethereum.
Adam Cochran, a partner at Metacartel Ventures and an adjunct professor at Conestoga College in Canada, recently released an extensive analysis of the top 10,000 ETH addresses (by holding size).
While his report revealed many fascinating discoveries about the intricacies of the second-largest cryptocurrency, what was especially interesting is that according to Cochran, his team identified “wallets associated with major players such as JPMorgan Chase, Reddit, IBM, Microsoft, Amazon, and Walmart.”
The details were scant, but the crypto investor asserted that “100%” of these wallets are accumulating ETH. Again, it wasn’t clear how much they were accumulating, but considering they’re within the top 10,000 addresses on the entire Ethereum network, these firms likely hold millions of dollars between them.
Importantly, there is currently no way to tell if these same companies are accumulating BTC as they are doing with Ether because the way Bitcoin operates makes it somewhat more difficult to tie an address to one’s identity.
But considering that Microsoft and other Fortune 500 companies have been revealed to be dabbling in using Bitcoin for commercial applications, there’s a good likelihood they are.
Institutions and other big players in the cryptocurrency space have been accumulating Ethereum for a while now, data shows.
As reported by CryptoSlate previously, Grayscale Investments, the investment arm of crypto conglomerate Digital Currency Group, has purchased approximately 756,540 ETH in 2020 — 40% of the cryptocurrency minted through mining this year thus far.
Grayscale accumulated these coins in response to institutional buying volume behind its second flagship product, the Ethereum Trust, ETHE. The product was found to have seen massive inflows in Q1 of 2020, 88% of which came from institutional players.
As Spencer Noon explained:
“Institutional investors are buying ETH. The cat is officially out of the bag. From the latest Grayscale report: Ethereum Trust saw $110M in Q1 inflows This is more than all of its previous inflows combined for the past 2 years ($95.8M).”
Not to mention, Su Zhu of crypto and forex fund Three Arrows Capital observed that on Apr. 10, there was a large Ethereum buy wall on Bitfinex, with buyers putting up a jaw-dropping 250,000 ETH worth of bids between $159 and $162, amounting to a cost of around $40 million.
Stepping back from the Fortune 500 institutions mentioned, what’s behind the broad surge to accumulate Ether?
It seems to be centered around Ethereum 2.0.
Within the coming months, developers will be rolling out the most hyped technical upgrade (except for Segwit maybe) to a blockchain of all time: Ethereum 2.0. This move will change the cryptocurrency’s monetary model and increase the functionality of Ether, so much so that Cochran explained in a previous analysis that he expects the upgrade to cause a massive economic shift in society.
Aside from Ethereum, there are fundamental trends that have accentuated the value of cryptocurrencies as a whole.
Namely, the Federal Reserve and other centralized institutions printing fiat money en-masse have shown how fragile the traditional financial system is, and how Bitcoin and other digital assets could be seen as a way out or a hedge against a potential collapse of the system, as described by Raoul Pal.
Author: AuthorNick Chong Twitter LinkedIn Analyst @ CryptoSlate
Ethereum Classic (ETC) is Looking for Stablecoin Projects to Support
Majority of the stablecoins in the crypto-verse run on the Ethereum (ETH) network. They include Tether (USDT), True USD (TUSD), Paxos Standard (PAX), Gemini Dollar (GUSD) and USD Coin (USDC). The Tron network is also home to the TRC-20 version of Tether (USDT). Tron recently launched USDJ that is generated on the Just (JST) platform that brings DeFi to the TRX ecosystem. Additionally, we have Binance USD (BUSD) that runs on the Binance Chain blockchain network.
It is with the above brief history of stablecoins in the crypto-verse that James Wo replied, via Twitter, to a question as to when the ETC network will support a stablecoin. Mr. Wo is a founder at ETC Labs and he responded by stating that ETC labs was looking for stablecoin projects to support and/or partner with. His reply and the initial tweet asking the question can be found below.
Great question. @etclabs is looking for stable coin projects to support or establish partnership! https://t.co/tZxFudxhLN
— James Wo (@realjameswo) May 1, 2020
In his response to Mr. Wo, Twitter user @crypto_espresso was quick to identify the benefits Tether has had on Ethereum since the latter platform started supporting the stablecoin. He implied that if Ethereum could benefit from issuing stablecoins such as Tether, then ETC would also reap the benefits of such a move.
#Ethereum has done well since it started to issue #Tether….so why not #EthereumClassic?
When USDT was launched in September of 2017 on the Ethereum network, ETH was valued at approximately $260 at the time. To note is that this was right before the 2017 crypto bull run that would find Ethereum trading at $1,400 in January of 2018. Therefore, for Ethereum Classic to experience such a drive in the markets after launching a stablecoin, it would take the right type of trading environment for ETC to exhibit similar gains.
Viewing the situation from another angle, there is also the aspect of additional exposure of the Ethereum Classic network through the issuance of a stablecoin. What might result from the launch of a stablecoin on the ETC network, is that more projects will migrate over and boost the Ethereum Classic ecosystem.
(Feature image courtesy of Ran Berkovich on Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
Author: John P. Njui