EOS, Ethereum and Ripple’s XRP – Daily Tech Analysis – July 21st, 2020
EOS fell by 0.83% on Monday. Partially reversing a 3.17% rally from Sunday, EOS ended the day at $2.5685.
It was a choppy start to the day. EOS rose to a late morning intraday high $2.6196 before hitting reverse.
Falling well short of the first major resistance level at $2.6431, EOS fell back to sub-$2.57 levels before finding support.
EOS briefly revisited $2.60 levels again before sliding to a late intraday low $2.5402. Steering clear of the first major support level at $2.5013, EOS recovered to $2.56 levels to limit the downside.
At the time of writing, EOS was down by 0.26% to $2.5618. A bearish start to the day saw EOS fall from an early morning high $2.5675 to a low $2.5618.
EOS left the major support and resistance levels untested early on.
EOS would need to move through the $2.5761 pivot level to support a run at the first major resistance level at $2.6120.
Support from the broader market would be needed, however, for EOS to break back through to $2.61 levels.
Barring an extended crypto rally, the first major resistance level and Monday’s high $2.6196 would likely cap any upside.
Failure to move through the $2.5761 pivot would bring the first major support level at $2.5326 into play.
Barring another extended sell-off, EOS should continue to steer clear of sub-$2.45 levels. The second major support level at $2.4967 should limit the downside.
First Major Support Level: $2.5326
Pivot Level: $2.5761
First Major Resistance Level: $2.6120
23.6% FIB Retracement Level: $6.62
38% FIB Retracement Level: $9.76
62% FIB Retracement Level: $14.82
Ethereum fell by 1.32% on Monday. Partially reversing a 1.44% decline from Sunday, Ethereum ended the day at $236.1.
It was also a choppy start to the day. Ethereum rose to an early morning intraday high $239.8 before hitting reverse.
Falling short of the first major resistance level at $241.69, Ethereum slid to a late intraday low $233.85.
Ethereum fell through the first major support level at $234.97 before moving back through to $236 levels.
At the time of writing, Ethereum was up by 0.11% to $236.35. A mixed start to the day saw Ethereum fall to an early morning low $235.77 before striking a high $236.46.
Ethereum left the major support and resistance levels untested early on.
Ethereum would need to move through the $236.6 pivot to support a run at the first major resistance level at $239.32.
Support from the broader market would be needed, however, for Ethereum to break back through to $239 levels.
Barring an extended crypto rally, the first major resistance level and Monday’s high $239.8 should cap any upside.
Failure to move through the $236.6 pivot would bring the first major support level at $233.37 into play.
Barring another extended sell-off, Ethereum should continue to steer clear of sub-$230 levels. The second major support level at $230.63 should limit any downside.
First Major Support Level: $233.37
Pivot Level: $236.60
First Major Resistance Level: $239.32
23.6% FIB Retracement Level: $257
38.2% FIB Retracement Level: $367
62% FIB Retracement Level: $543
Ripple’s XRP slid by 2.45% on Monday. Reversing a 0.20% decline from Sunday, Ripple’s XRP ended the day at $0.19502.
Tracking the broader market, Ripple’s XRP rose to an early morning intraday $0.20068 before hitting reverse.
Ripple’s XRP fell through the first major support level at $0.1965 and the second major support level at $0.1932.
Finding late support, Ripple’s XRP moved back through the second major support level to cut the deficit on the day.
At the time of writing, Ripple’s XRP was down by 0.04% to $0.19494. A relatively bearish start to the day saw Ripple’s XRP fall from an early morning high $0.19497 to a low $0.19429.
Ripple’s XRP left the major support and resistance levels untested early on.
Ripple’s XRP will need to move through the $0.1960 pivot to support a run at the first major resistance level at $0.1997.
Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $0.199 levels.
Barring a broad-based crypto rally, the first major resistance level and Monday’s high $0.20068 should cap any upside.
In the event of a breakout, Ripple’s XRP should test the second major resistance level at $0.2044 before any pullback.
Failure to move through the $0.1960 pivot would bring the first major support level at $0.1913 into play.
Barring another extended crypto sell-off, Ripple’s XRP should avoid the second major support level at $0.1875.
First Major Support Level: $0.1913
Pivot Level: $0.1960
First Major Resistance Level: $0.1997
23.6% FIB Retracement Level: $0.3638
38.2% FIB Retracement Level: $0.4800
62% FIB Retracement Level: $0.6678
Please let us know what you think in the comments below.
This article was originally posted on FX Empire
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Author: Bob Mason
Ethereum Turns Five Next Week and We’re Producing a Special Series
Author: by admin
Ethereum ‘Flippens’ Stablecoins to Become the Most Used Blockchain
For the last month Bitcoin (BTC) price has traded in a tight range and trading volume has been relatively flat. Meanwhile, several tokens on the Ethereum network have been topping the price charts, especially the Decentralized Finance (DeFi) tokens.
New data from Messari shows that Ethereum has just surpassed Bitcoin as the network that settles the most value per day. This means that the dollar value on the transactions of both Ether (ETH) and its tokens is now higher than that of Bitcoin.
Ethereum vs Bitcoin daily settlement value. Source: Messari
While the DeFi sector has been gaining popularity, stablecoin transactions have been responsible for most of this volume, having settled over $508 billion in transactions over the course of 2020. This figure is nearly double the $253 billion settled in 2019.
Tether (USDT) is the main stablecoin responsible for the volume and according to Messari, it could possibly surpass Bitcoin as the most transacted cryptocurrency in the market.
USDT vs Bitcoin daily transaction value. Source: Messari
Bitcoin offers colored coins through protocols like Counterparty and Omni, but these assets pale in comparison to the smart contract capabilities of the Ethereum network, which continue to be showcased through the novel possibilities of DeFi. Coupled with lower fees and faster transaction times, Ethereum has become the chain of choice for centralized and decentralized stablecoins alike.
While USDT was first issued on the Bitcoin blockchain, only 13.2% of its supply currently resides on BTC, while the Ethereum chain holds 59.8% of the USDT supply. As most of the USDT balance is held on Ethereum, USDT is also the biggest spender of gas in the network, according to data from ETH Gas Station.
Led by USDT, the collective stablecoin market capitalization grew from $2.4 billion to around $8 billion in Q1 alone. Another $3.8 billion was added in the Q2, making the current figure over $12 billion, and approximately $9.18 billion belongs to Tether. Tether has also surpassed Ripple (XRP) as the third largest cryptocurrency.
Stablecoin collective market capitalization. Source: Messari
While inter-exchange settlement is the most popular use for stablecoins, DeFi has also been a considerable force in the growing activity seen on the Ethereum network. Because of their peg to fiat currencies, stablecoins are quite popular among DeFi lending protocols which have been gaining traction throughout 2020.
The platforms have seen noticeable surges in the amount of funds locked and in Q2 the figure surged above $2 billion. Compound alone achieved a major milestone with over $1 billion assets borrowed in total.
Stablecoins and growth within the DeFi sector are likely to continue driving transaction volume and settlement value on the Ethereum network but will the network be able to support this growth?
Stablecoins already account for more than 70% of the total daily value settled and if the Ethereum network continues to have unresolved congestion and scalability problems there could be real problems within the DeFi platforms.
For the time being, it’s unclear whether or not the Ethereum Network will be able to deal with the rapidly increasing stablecoin and DeFi activity, especially as corporations set their sights on the sector.
Author: Published 9 hours ago
Ethereum Long-Term Price Analysis: 21 July
Ethereum’s sideways movement below the upper resistance of $250 and consistent movement above and below $233-$227-$216 has been fairly evident since the start of June 2020. The last significant rally was witnessed during the end of May and since then, similar to Bitcoin, the largest altcoin is on a performance rut.
The trend seemed a little positive at the time of writing but the valuation hasn’t drifted away from recent heights. Ethereum had a market cap of $27.2 billion with the token valued at $243.
Source: ETH/USD on Trading View
At first glance, Ethereum’s recent breakout from its ascending broadening wedge can be observed in the charts. After briefly ascending from $218 to $245, the valuation started to dip between the pattern, and a breakout was witnessed on 16th July. However, as expected, the correction period for Ethereum was extremely brief in the markets. The asset was able to under steady itself over the past week and breach above immediate resistance at $233.
The major red flag evident in the charts in the decreasing trading volume alongside the rise in price. Possible bearish divergence might be taking place for the token’s trend hence it is unlike the asset will breach above $250 during the current rally.
A correction period may surface over the next week, bringing down Ethereum’s value to re-test support at $233, while stabilizing in the upper range of $250-$233.
Relative Strength Index or RSI has been incredibly bullish over the past week but it has been a familiar path since the start of June. Buying pressure may dip once the price starts its correction period in the next few days.
ETH/USD on Trading View
Ethereum’s weekly chart would not be a pleasant sight for its investors and proponents. According to Gann Fan analysis, during the bullish rally January-February 2020, the asset was able to re-test the 1:1 line. Now, mediation of price as close proximity to this trendline indicates that the asset had strong bullish momentum backing its movement.
The collapse of March 2020 was extremely hurtful for the charts as bears took over. Now, after its persistence to retrace back near 1:1 line can be identified but over time, the price has incline near the 2:1 line.
The chart in-short is suggestive of the fact that Ethereum is actually bearish from a long-term perspective unless it is able to sustain another rally towards the 1:1 line.
The price of Ethereum should re-test support at $234 over the next week as a part of its correction phase.
Author: Published 10 hours ago
Ethereum 2.0 Testnet Launches in Two Weeks
The ethereum 2.0 public testnet is to launch on August 4th at 1 or 2PM London time according to Danny Ryan, the ethereum 2.0 coordinator.
In a public statement in the testnets discussion board following the announcement of the attacknet on Monday, Ryan said:
“After discussions with client teams, the next multi-client testnet (mainnet config including min validator numbers) will have a min genesis time of aug 4 (likely 1 or 2pm utc).
We’ll also be showcasing ‘Launchpad’ on this net, the educational deposit interface aimed at hobbyists. I expect the deposit contract and config to be made public in next couple of days.
Note, ‘min genesis time’ is approximately the time the network will start if min validator deposits are made prior to 48 hours before that time. Otherwise, the time will be triggered by meeting the min validator count whenever it does.”
The deposit contract interface has previously been leaked with it all looking pretty slick and it’s to launch now in a couple of days.
People are meant to deposit fake eth in there, with that fake eth then going to the testnet which is to launch in precisely two weeks.
The testnet is then meant to run for about three months, meaning until November 4th. So the genesis block of ethereum 2.0 may well launch on November the 5th.
That genesis block creates a new Proof of Stake (PoS) network that has skeleton sharding in it.
That is, and in very simple terms, validators/stakers are bundled in their own node grouping, their own shard, with the beacon node coordinating their ‘movement.’
Initially these stakers don’t do much except reach consensus within the shard and within the whole PoS network regarding the Proof of Work (PoW) blocks.
Then the stakers will be given more work, starting with keeping stuff in their laptops or servers in the second stage of storage sharding.
After that stage the PoW chain is to be discarded by being merged into the PoS chain.
How such merger will happen exactly is not clear at this stage, but if they can do it then ethereum’s inflation will drop to near zero (0.22% a year).
Then full sharding will launch and if it does all work, theoretically ethereum should be able to reach world level scalability.