Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin points to $288K, according to the S2F ratio
The crypto market continues to move forward as if nothing has changed after the halving event. In the previous halvings, the bullish reaction of Bitcoin – and the whole crypto board – only started on average after six months.
A leading analyst in the crypto ecosystem on Twitter, Plan B (https://twitter.com/100trillionUSD), has tweeted its post-halving price forecast for Bitcoin. According to their S2F (Stock to Flow) model, the price of Bitcoin would start a strong upward movement six months after the event (November 2020). Plan B expects BTC/USD to move into a price range around $288000 by 2024.
The BTC/USD pair tries again this morning to break above the $9000 level without success, while in the case of ETH/USD it is the $190 level that limits a possible recovery from last week’s levels. The worst performer in the top 3 is the XRP/USD pair, which lost support in the weekend sell-off and is in a weak position until it breaks through the $0.20 level.
In the dispute for dominance in the crypto market, Bitcoin fails to break the upper limit of the long-term bearish channel. Indicators show potential for a final upward breakout attempt, but not enough to get much distance from current levels.
The Ethereum dominance chart shows the other side of the coin and is still waiting on the 200-day moving average to launch its attack. Technical indicators are beginning to show signs of upward pressure, but it seems unlikely that the bullish structure will be complete until the end of this month.
Market sentiment is improving by two points from yesterday, and the 41 level indicates that fear is the dominant factor at the moment.
The ETH/BTC pair is currently trading at the price level of 0.0213 and is moving dangerously far away from the 200-day simple moving average. If the downward movement is confirmed, the target would be the 0.0203 level. At this level, a price congestion support and an uptrend line that begins at the January lows converge. The time projection marks the end of this month as the probable date for this – not yet confirmed – bearish movement.
Above the current price, the first resistance level is at 0.221, then the second at 0.227 and the third one at 0.235.
Below the current price, the first support level is at 0.203, then the second at 0.198 and the third one at 0.187.
The MACD on the daily chart retains the previous bearish profile. If it improved a little yesterday, it makes the opposite move today and worsens enough to risk the current price levels.
The DMI on the daily chart shows the bears holding well above the ADX line and retains all the downward potential. The bulls remain confident that they can enter the leadership contest and maintain a healthy level of strength.
The BTC/USD pair is currently trading at the price level of $8906 and is unable to break through the $9000 resistance level. The main moving averages are concentrated around the $8000 level forming a bullish golden cross. This remarkable confluence of key technical indicators is going to have a strong pull on the price, and we may see this level in the BTC/USD pair soon.
Above the current price, the first resistance level is at $9150, then the second at $9650 and the third one at $10,000.
Below the current price, the first support level is at $8800, then the second at $8400 and the third one at $8200.
The MACD on the daily chart continues with the bearish setup, although it doesn’t increase the slope or the opening between the lines. With the current structure, a short-term upward movement that could undo the bearish cross it’s still possible.
The DMI on the daily chart shows both sides of the market following each other tightly. This type of structure can precede a violent movement.
The ETH/USD pair is currently trading at $190.06. On the upside, the movement is limited y the presence of the 100-day simple moving average at $191.2.
Above the current price, the first resistance level is at $191, then the second at $195 and the third one at $200.
Below the current price, the first support level is at $186, then the second at $180 and the third one at $175.
The MACD on the daily chart shows an increase in the bearish momentum.
The DMI on the daily chart shows the bears maintaining control over the bulls, but being unable to break the ADX line, the sell-side does not activate the bearish pattern.
The XRP/USD pair is currently trading at the price level of $0.1980 and appears unable to break through the $0.20 resistance level. The main moving averages continue to point down.
Above the current price, the first resistance level is at $0.20, then the second at $0.218 and the third one at $0.238.
Below the current price, the first support level is at $0.192, then the second at $0.171 and the third one at $0.15.
The MACD on the daily chart is approaching the neutral level of the indicator, where it could find support and open a bullish opportunity for XRP.
The DMI on the daily chart shows bears dominating XRP/USD but failing to move above the ADX line. The bulls are still losing strength consistently.
- Ethereum’s 200 Daily MA Provides Crucial Support Ahead of ETH2.0
- Will interoperability render Ethereum 2.0 redundant?
- Vitalik Buterin Backtracks on Ethereum 2.0 July Release Date
- Users Are Shifting to Ripple Due to Bitcoin and Ethereum Congestion
- Ethereum 2.0 will not be released in July, Ethereum core dev confirms
Ethereum’s 200 Daily MA Provides Crucial Support Ahead of ETH2.0
The Bitcoin halving event is now behind us and as we look back at the performance of BTC, we observe that the King of Crypto had a local top at around $10,000 before falling hard to $8,100. This dip that happened on the 10th of May, had an effect on all other cryptocurrencies including Ethereum (ETH) which is now below $200 and trading at $191 at the time of writing this.
Further checking the 1-Day ETH/USDT chart courtesy of Tradingview.com, we observe the following.
However, there is the fact that ETH2.0 is still on track for launch in July this year. The completion of the upgrade in July was further confirmed by Vitalik Buterin in a virtual interview during Consensus: Distributed.
This, in turn, means that despite the Bitcoin halving hype being over, Ethereum still has its network upgrade to look forward to. Therefore, the 200 Daily MA is one area of crucial support to observe in the coming days for Ethereum.
As with all trading analysis, investors and traders are advised to have adequate stop losses and also to keep an eye out for Bitcoin’s volatility when trading Ethereum.
(Feature image courtesy of 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·Ethereum News·May 12, 2020·2 min read·156 views
Will interoperability render Ethereum 2.0 redundant?
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The Ethereum community has had a long wait for the much-anticipated Ethereum 2.0 upgrade. After several years of delays. July is the targeted date for the move to proof-of-stake, provoking wild speculation about a bull run in the price of ether.
It does seem reasonable to assume that the proof-of-stake implementation, known as Beacon Chain, will spark some positive price movement. If nothing else, locking up ether in staking introduces a supply constraint that should help to push the price. The launch of Eth 2.0 will also put a cap on the supply of ether after Vitalik Buterin confirmed that one of the reasons for a move to proof-of-stake is to reduce issuance.
If you’re holding a long position in ether, then this could be good news. However, a push on price isn’t necessarily good for network users, as ether is used to pay for the gas needed to transact on Ethereum. During the 2017 price spike, users saw significant rises in transaction costs.
Nevertheless, costs alone are far from the only reason to remain skeptical that July will see the second coming of Ethereum.
Ethereum’s biggest problem has always been its lack of scalability. While the platform has proven immensely popular among blockchain application developers and users, it continues to suffer from congestion and choking at peak usage. While competitor platforms can boast of handling thousands of transactions per second, Ethereum continues to run just 15 at full capacity.
The Beacon Chain implementation may bring some price benefits, but solving the scalability challenge is still years away. ETH 2.0 is a three-phase project, and Beacon Chain represents Phase 0. It’s essentially a lone chain that will run side-by-side with Ethereum’s current proof-of-work blockchain and won’t support smart contracts or user accounts.
It will be at least another year after that before Phase 1 arrives, which will be the first demonstration of scalability using sharding. However, it’s only with the final phase that dApp developers and users will feel the benefit of scalability. Phase 2 will implement the Ethereum Flavored Web Assembly, or eWASM, which is a kind of re-engineered Ethereum Virtual Machine supporting smart contracts, accounts, and more.
Furthermore, one testnet coordinator has even indicated that July may be too ambitious for the Beacon Chain rollout. So, it could be years before ETH 2.0 yields any changes to the scalability situation.
In light of the long and winding road ahead, many projects are now seeking to implement their own solutions to Ethereum’s scalability challenges. Interoperability is perhaps the most promising, using bridges between faster, more powerful blockchains to ensure that Ethereum developers have access to the scalability they’re missing.
Earlier this year, Syscoin became the first project to implement a two-way bridge between its own Z-DAG layer and the Ethereum blockchain. The Syscoin Bridge enables any dApp developer to send their tokens across the Bridge for processing by the Syscoin network.
Syscoin’s Z-DAG is an interactive, instant settlement protocol using a directed acyclic graph structure. It can scale to up to 60,000 transactions per second, as verified by Whiteblock, an independent third party. The interactive part of the protocol means that developers can select their optimum trade-off between security and speed. A low-value transaction could be processed with a double-spend assurance of 99.9% in one or two seconds, whereas higher value transactions could wait up to ten seconds for a full global consensus of 99.9999% assurance.
The Syscoin Bridge utilizes a mint-and-burn mechanism on either side, which serves to ensure that supply is maintained no matter how many times a token crosses the Bridge.
Furthermore, Syscoin is a low-cost processing platform, and using it means that any spike in the value of ETH won’t impact on transaction costs.
Tether is an example of a project that has moved from platform to platform in the hope of being able to sustain its meteoric growth. It started out on Omni but introduced the ERC20 version of USDT in 2017 as a means of avoiding the congestion on Omni.
However, since then, Tether has grown to account for half of all transactions on the Ethereum network, itself becoming one of the main causes of Ethereum’s congestion.
It’s latest move, towards interoperable bridges, is designed to ensure that Tether users can benefit from the high speed of processing on the EOS network. CTO Paolo Ardoino confirmed the company is issuing a wrapped version of BTC on the EOS mainnet, and plans to expand this feature to wrapped versions of the ERC20 USDT.
In light of the fact that interoperable bridges are already providing a workable solution to Ethereum’s lack of scalability, one has to wonder if there’s even any point in continuing with the ETH 2.0 upgrade. After all, it’s a lot of work to solve a problem that now already has a solution. It seems that Ethereum’s core developers would rather pursue single-network scalability at any cost, rather than consider the idea that an interoperable ecosystem of blockchains is a better concept than Ethereum continuing as the one blockchain to rule them all.
Ethereum has survived this long, and it seems unlikely that its loyal community will abandon it now, even if scalability is still years away. However, the real danger is that by the time ETH 2.0 delivers on its promise, it will no longer even be considered necessary.
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Cover Photo by Federico Beccari on Unsplash
Author: AuthorReuben Jackson Twitter Contributor @ CryptoSlate
Vitalik Buterin Backtracks on Ethereum 2.0 July Release Date
The long-awaited release of ETH 2.0 has had the Ethereum community in a state of expectancy for well over a year at this point. Originally, developers had set a January 2020 release date. But that date has come and gone with only more news of further delays since then.
It follows that during the Consensus: Distributed conference, which is taking place virtually between May 11 – 15, Ethereum co-founder, Vitalik Buterin apparently confirmed the project is on track for July 2020 launch. However, in an unexpected twist, Buterin has since backpedaled on the release date.
In a tweet, Buterin claims to have misheard the question and then confirmed ETH 2.0 will not be ready for July. This disappointing turn of events has been met with FUD from the Ethereum community. With some even claiming that it’s unlikely ETH 2.0 will launch this year.
I can now officially confirm that ETH 2.0 won’t launch by July.
Stay tuned for official confirmation that it won’t launch by July 2021 either!
— Udi Wertheimer (@udiWertheimer) May 12, 2020
Since Ethereum launched in mid-2015, it’s core developers have been playing catch up. ETH 2.0, with significant upgrades to scaling, as well as implementing a Proof-of-Stake model, intended to address these concerns.
Regular updates show development is taking shape. For example, in late April, Ethereum developer, Eric Connor tweeted an update on how the ETH 2.0 testnet is progressing, as well as linking the Github update.
“The first phase of Ethereum 2.0, the phase 0, is the beacon chain. For the first time, a variety of new clients will be working together on a brand new blockchain with a new, unique approach to networking and consensus.”
To which the Schlesi testnet, as it’s been dubbed, currently has two clients: Lighthouse from Sigma Prime and Prysm from Prysmatic Labs.
Eth2 multi-client testnet is up and running. So far, Prysm and Lighthouse have joined.https://t.co/h8xNwSjpyc
— eric.eth (@econoar) April 27, 2020
But a look at the May 2019 dated roadmap shows just how far behind current development is from original expectations. According to the roadmap below, phase 0, Beacon Chain was set for completion by the end of 2019. Yet almost halfway into 2020 and there is no sign of this happening soon.
The Beacon Chain phase relates to the switch from Proof-of-Work to Proof-of-Stake. Developers, Consensys state that both PoW and PoS chains will run alongside each other during this development phase. This will ensure continuity of the chains until some time when the PoW chain is switched off.
“The Beacon Chain is a Proof of Stake blockchain and will mark the execution of the long-planned switched from proof of work to proof of stake consensus mechanism.”
The hold-ups to Eth 2.0 have many wondering if the Ethereum core developers can deliver at all. This is especially applicable considering the sheer number of “Ethereum-killers” gunning to take their crown.
With that, Charles Hoskinson recently compared Cardano to Ethereum by saying:
“Contrast that with Cardano, where we brought scientists together and we follow the peer review process, and we systematically wrote paper after paper, and those papers went through peer review and we slowly built up the entire theory of Proof-of-Stake to a point where we felt comfortable and then we started talking about it.”
What’s more, Hoskinson further contrasted the projects by saying Cardano’s ground-up foundations have set the project in good stead. Whereas Ethereum is greatly hindered by tacking development onto a pre-existing code that is already outdated.
Author: Samuel Wan
Users Are Shifting to Ripple Due to Bitcoin and Ethereum Congestion
- Increased Ripple usage when Ethereum and Bitcoin blockchain experience congestion.
- XRP fees are relatively low compared to Bitcoin and Ethereum.
- XRP fees are over 100x less than Ethereum fees.
According to new research, users are shifting to the Ripple ledger due to congestion on the Bitcoin and Ethereum blockchain. This comes as increased cryptocurrency adoption is resulting in higher network fees across major cryptocurrencies.
The research was published on the Xpring blog. Xpring is Ripple’s development arm that focused on developing and furthering Ripple’s technology.
- Ripple’s Xpring Recognized by Fast Company
The top three cryptocurrencies by market cap, account for the majority of cryptocurrency value transacted. While Bitcoin is regarded as slow and expensive, many users use Ethereum to transact. However, Ripple’s XRP ledger has even lower transaction fees than the Ethereum blockchain.
Bitcoin has a 10 minute block time and relatively smaller block capacity. As a result, Bitcoin only a TPS (transactions per second) capacity of 7. Thus, the Bitcoin network can get congested very quickly. During late 2017, Bitcoin activity exploded resulting in fess surpassing $35 for a single transaction.
- How Bitcoin Transactions Work
While Bitcoin fees have dropped to $2.50 per transaction, this is still exponentially higher than fees paid on the Ethereum and Ripple blockchain.
Ethereum on the other hand, Ethereum has a 13-second block time which gives the blockchain a TPS of 15 transactions per second. Thus, Ethereum’s transaction fee is only $0.053 per transaction.
The Ethereum blockchain has been consistently operating at over 80% usage. Increasing adoption will push the blockchain to its limits and result in network congestion and higher fees.
- Ethereum DeFi Apps Surge 778% in Q1 2020
Transactions on the third-largest cryptocurrency follow an entirely different path. The XRP ledger is a distributed ledger that does not have blocks. Therefore transactions are instant and inexpensive.
With the average XRP fee being 0.002 XRP ($0.00042) per transaction, transacting on the XRP ledger is far more cost-efficient than Ethereum and Bitcoin. Thus, many users have begun to utilize the XRP ledger to take advantage of the scalability and inexpensive transactions.
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Author: Adit Gupta 2 hours ago
Ethereum 2.0 will not be released in July, Ethereum core dev confirms
- A core developer of Ethereum has confirmed that the release of Ethereum 2.0 is not scheduled for July this year.
- Vitalik Buterin has also clarified in a statement that he has not confirmed a release date for Ethereum 2.0.
After Bitcoin’s halving, the release date of Ethereum 2.0 has occupied the attention of the crypto community during the last days. Due to the launch of the test networks “Topaz” and “Schlesi” and the approaching fifth anniversary of Ethereum, it was expected that the launch would take place soon.
This seemed to have been confirmed by the inventor of Ethereum, Vitalik Buterin. During his participation in the Consensus Distributed event, Buterin was enthusiastic about the important milestones Ethereum has reached in the last months. The introduction of the above mentioned testnet is part of the prerequisites for the launch of phase 0 of Ethereum 2.0. In this sense, Buterin said when asked if the release date would really be in July:
I think so, Ethereum 2.0 already has two testnet, Topaz and Schlesi, launched a week ago (…) That’s the first phase of ETH 2.0 that will bring the Proof-of-Stake (…) It’s moving forward on all fronts.
However, the core developer of the Ethereum, Afri Schoeden, stated via his Twitter account that the progress is still lacking for the launch of the Ethereum 2.0 mainnet. Regarding Buterin’s statements, Schoeden supported developer Marco Levarato (no affiliation with Ethereum), who said:
It’s impossible that will go live in July, there isn’t an official multi client testnet and this “coming soon” testnet needs 2 months of flawless run. We are in the mid of May.
The community demanded Afri to elaborate on the subject. Therefore, Afri added that the final specifications have not been implemented in any client so far, nor a coordinated testnet was launched. Afri also said that it is “simple math”. The time required for the testnets and the work that remains to be done makes it impossible to launch in July. In addition, Afri had this to say about Buterin’s comments:
Going on stages or panels and putting out dates is not helpful at all. I don’t think Vitalik said July. But I didn’t see the talk.
Buterin himself clarified that there was a misunderstanding. According to him, he did not hear the word “July” in the question and therefore admitted that he made a mistake. Despite this, Buterin maintains his position that Ethereum 2.0 “is on track”.