Price Update: Bitcoin and Ethereum Prices May Bounce Back Soon
The top two cryptocurrencies in the world by market capitalization Bitcoin (BTC) and Ethereum (ETH) have turned bearish in the cryptocurrency market after trading in the bullish territory for a few weeks. After recording their yearly highs recently, both of the digital assets have faced a significant drop in their price values. Looking at the current technical picture of both BTC and ETH, it seems that they may bounce back in the coming days.
The largest cryptocurrency in the world by market cap Bitcoin (BTC) has been dropping down during the last few days. The price value of Bitcoin faced a loss of over $2,000 in recent times as the coin dropped from its local highs of $12k to $10k. Bitcoin’s price even went down below $10,000 for a shorter period of time but has recovered so far.
Currently, the price of BTC is down over 1% while trading at around $10,243 at the time of writing. This means that Bitcoin is still in the bearish zone and may drop down further if it does not sustain it here. In the short-term case scenario, there is a chance that the coin may plummet down in the coming days. However, the trend line has slightly started moving upward which means that the coin is preparing for bouncing back. The next major resistance for the coin is standing at $10,500.
Following Bitcoin’s price drop, the world’s second-largest cryptocurrency Ethereum (ETH) also could not sustain its bullish trend and dropped down. Recently on September 1, the second-ranked digital currency recorded its high at around $488 but after that, it has been plummeting down. For over the course of the last seven days, the coin has faced a loss of more than 12% which sent the price of the coin down to $330 area.
However, the coin has slightly recovered so far. Currently, the price of ETH is trading at $343 with a change rate of -9.42%. Though ETH price is trading in the bearish zone the chances for recovery are still out there. If the coin manages to break above the resistance of $350 in the coming days it might be able to bounce back towards its yearly high value.
Big Reaction From Bulls Imminent – news.kuaidiantou.vip
Ethereum is up over 2% and it broke the main $400 resistance against the US Dollar. ETH price is likely to accelerate higher once it clears the $408 resistance zone.
After a strong downside correction, Ethereum found support near the $370 level against the US Dollar. ETH price made two attempts to decline below the $370 support, but the bears failed to gain momentum.
As a result, ether started a strong increase and broke the $385 resistance. It opened the doors for more gains above the $395 pivot and resistance level. The price climbed above the 50% Fib retracement level of the downward move from the $411 high to $370 low.
More importantly, there was a break above a crucial bearish trend line with resistance near $395 on the 4-hours chart of ETH/USD. The pair is now trading nicely above the $400 resistance level, the 100 simple moving average (4-hours), and the 76.4% Fib retracement level of the downward move from the $411 high to $370 low.
Ethereum price trades above $400. Source: TradingView.com
An immediate resistance is near the $408 level (the last key breakdown zone). A successful close above the $408 level may perhaps open the doors for a larger increase in the near term.
The next major resistance for ether could be near the $420 level or the 1.236 Fib extension level of the downward move from the $411 high to $370 low. Any further gains could lead the price towards the $450 resistance.
If Ethereum fails to clear the $408 resistance zone, it might start a downside correction. An initial support is near the $395 level and the 100 simple moving average (4-hours).
The next major support is near the $390 level, below which the bears are likely to target a retest of the $370 support region in the near term.
4 hours MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
4 hours RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $395
Major Resistance Level – $408
Ethereum Developers Discuss The Possibilities Of Solving High Fees.
Ethereum developers during the upcoming conference call discussed the problem of a sharp increase in transaction fees and the possibility of solving it, Cointelegraph reports.
Independent researcher Alexei Akhunov raised the question of the role of gas tokens in the growth of transaction fees.
According to him, in the mempool there are often many transactions with a certain gas price, which are designed to issue such tokens. The researcher compared this to an exchange order book, where traders try to buy assets at low prices by placing the appropriate orders. According to Akhunov, these transactions are not easy to cancel and this leads to an artificial increase in the price of gas.
The essence of one of the proposals is to eliminate the cost recovery mechanism that makes gas tokens possible. Akhunov emphasized that the creation of such tokens represents only about 2% of the current expenses of the time.
The developers also discussed the EIP-2929 proposal put forward by Ethereum co-founder Vitalik Buterin and developer Martin Suende. It involves a significant increase in the cost of gas for some storage operations.
This approach helps protect the network from potential DoS attacks. Its implementation can reduce the cost of some other operations. Akhunov noted that some of the nuances of EIP-2929 require further discussion.
Also, the developers have discussed EIP-2711. Its essence is to allow one account to pay commissions to another. It also assumes the option of creating batch transactions with guaranteed execution order. No specific decisions have yet been made regarding this EIP.
The proposals are considered in the context of their subsequent inclusion in the Berlin update, which was supposed to be released in the summer.
Remember that the other day the average transaction fee on the Ethereum network was over $10.
Author: Souvik Sarkarhttps://news.triunits.comCrypto Expert And Blogger .