Ethereum’s Dominance Over the Market May Soon Explode Higher; Here’s Why
Ethereum’s price is moving higher today alongside that of Bitcoin and the rest of the crypto market.
This latest push higher has allowed ETH to re-surmount its crucial $380 level – which is the price that has determined several trends throughout the past few months.
Bulls must now move to build support at this level, as another break below it could have some lasting damage on the cryptocurrency’s technical outlook.
Traders widely believe that the coming few days and weeks will alter Ethereum’s macro outlook, as the confluence of it having a bullish market structure, mixed with positive fundamental developments like the phase 0 rollout of ETH 2.0, could provide bulls with fuel.
One trader is now noting that he is anticipating these bullish factors to give Ethereum’s market dominance a serious boost.
While it is only currently sitting around 12%, he is eying a move past 17% in the coming few weeks.
If this dominance climb does take place, it will suggest that ETH has seriously outperformed both Bitcoin and its peers.
This potential dominance rise could also reignite “altseason” and provide smaller altcoins with massive momentum.
At the time of writing, Ethereum is trading up roughly 1% at its current price of $382.
This marks a notable surge from its recent lows of $362 set just a few days ago, with the strong base of support here acting as a launchpad for its recent push higher.
It is imperative that bulls build support at $380 and defend this level, as an ability to do so could further bolster their current strength.
The ongoing price rise has come about due to that seen by Bitcoin. The benchmark cryptocurrency is in the process of pushing up towards the upper-$11,000 region.
One respected trader recently explained that a sharp rise in Ethereum’s dominance could be right around the corner.
He is watching for it to climb from roughly 12% to 17%, which would indicate that its price significantly outperforms that of Bitcoin and other altcoins in the near-term.
This target can be seen on the below chart that he recently put forth:
Image Courtesy of Pentoshi. Source: ETHUSD Dominance on TradingView.
The coming few days should provide some insight into this possibility, as the phase 0 rollout of ETH 2.0 could be a catalyst for upside.
Author: About The Author
Ethereum long-term Price Analysis: 19 October
Ethereum 2.0 is still in the works after many delays. And yet, it is still receiving a lot of praise from the likes of CFTC Chairman Heath Tarbert. While the ETH community is stoked about this, others have critiqued ETH’s timeline to deliver ETH 2.0.
At press time, there were many ETH competitors, but none at a level that could threaten ETH. In fact, while most of the DeFi and smart contract landscape falls under ETH’s purview and new competitors like DOT or BNB etc. have emerged, none are near competing with ETH.
ETH is still the 2nd-largest cryptocurrency in the world, with the altcoin trading at $375 per token, at press time. The long-term scenario for ETH, like BTC, was bearish due to various reasons.
The one-day chart for ETH showed why ETH is mainly bearish in the long-term. It is due to the formation of a rising wedge, one that extends all the way back to Black Thursday [7 months].
Breaking out of this pattern would suggest a drop of at least 15-20% [on the bright side]. However, if the drop starts cascading, then we can expect the price to drop 40+% and hit $210.
The RSI indicator, like the price, was consolidating, and a breakout might help with the aforementioned drop. The OBV indicator showed that the latest price action was backed by strong volume. The extent of the same can only be determined when the price actually drops and when the market reacts to it.
For now, we can take a closer look at the chart to see what might happen in the mid-to-long term scenario.
According to the attached chart, ETH was range-bound between $396 and $307, and at press time, the RSI indicator was slightly above the neutral zone. However, the MACD indicator showed that the bullish crossover that took place in early October might be losing momentum.
So, if there’s one thing to conclude from this chart, it is that ETH is not breaking this range and it will head to the lower range soon.
Author: by admin
The Ethereum 2.0 Deposit Contract Launch is Now Imminent
The deposit contract to stake on the new Proof of Stake ethereum 2.0 blockchain is now imminent according to Ben Edgington, an ethereum 2.0 dev at PegaSys.
“As I understand it, we are good to go: deposit contract in the next few days; beacon chain genesis 6-8 weeks later. (This is not an official statement!),” he said.
The Zinken dry run of the ethereum 2.0 launch has successfully completed, with Edgington stating:
“It wasn’t perfect, but went smoothly enough for us to turn our thoughts now towards the real thing.”
The full on Medalla testnet was running for weeks without problems, but the new Zinken dry run seems to have led to lower participation in Medalla, or people got bored.
In any event, the problems there appear to be more due to the fact that people are staking on Medalla with fake money, so there isn’t much you can do about it and more importantly there does not appear to be anything protocol related where participation rates are concerned.
Devs are increasing penalties for inactivity however, and they are quadrupling them based on their testneting experience.
“This quarters the penalties during non-finalisation, and is a temporary measure to give stakers more confidence in case we hit trouble,” Edgington says.
All of it meaning that after years of development and much testing, the live launch of the ethereum 2.0 phase 0 is now ready to go, with it requiring the depositing of some 500,000 real eth to start, worth close to $200 million. The genesis block launches a week after that minimum is met.
Currently some 3 million eth is staking on the Medalla testnet, worth more than a billion if it was real eth, with that indicating the initial level of interest and potentially the amount that will be staked in the coming months.
One big difference between the mainnet and the testnet is that the latter does not quite have what can be called staking as a service.
Things like Coinbase or Bitcoin Suisse are likely to offer staking as a service probably once this launches successfully and keeps finalizing for some months to the point it can reasonably be said it is stable.
That should prop up significantly the level of staking simply due to the ease with which it can be done, amounting most likely to just a click.
To begin with, people will have to go through a launchpad yet to go live for the mainnet, which requires command line knowhow and some basic tech skills that intentionally increase the barriers of entry because staking can be risky as one mistake could lead to losses.
On the other hand, staking as a service providers can be compared to web hosting providers who deal with all the servers and their configuration. Likewise they would deal with all this command line setup, choosing clients, keeping participation active, minding slashing, and hopefully making some profits for their clients and themselves in the process.
Or of course you can go VPS, and install the server as well as its configuration yourself with some knowledge needed to keep hackers out and the like.
Freedom v convenience will play out here too, but initially there will probably be only freedom, only the VPS option, only the command line staking route.
It is probable therefore, although it does remain to be seen, that initially just the minimum will be deposited or not far off from it.
That’s because even though there have been three testnets now to make the live launch as smooth as possible, things can potentially come up that could lead to a situation of non-finalization which means stakers would lose money.
What is also crucial for the live network is client diversification. No client should have more than 30% share of the network. That is vital. If it does, it is probable that it is a matter of when, not if, that a non-finalization event occurs.
A non-finalization event is one of the worst things that can happen because the network stops. For stakers, because they lose money and potentially very quickly now that the penalty has been quadripled.
If this maximum share of 30% can be maintained, then there should be only rewards to be enjoyed assuming no client shared bug or some sort of common bug occurs.
In our view, Lighthouse, Nimbus, Prysm and Teku are all good clients, and all must have a decent share. Must.
If they don’t, then perhaps social level consensus needs to intervene just like bitcoiners DDoS-ed pools that gained more than 50% network share.
For now however, the show that is to imminently begin is to be enjoyed. The party is on launch day, and then hopefully there is no hangover.
Author: John Binary
Ethereum 2.0 deposit contract to launch this week: ConsenSys dev
ConsenSys developer Ben Edgington has published an update that predicts the ETH 2.0 beacon chain genesis will happen within the next six to eight weeks.
In a post announcing the launch of ‘V1.0.0 release candidate 0’, Edgington revealed the protocol’s deposit contract address feature should be announced this week. The deposit contract allows ETH to be sent between Ethereum and ETH 2.0, and is one of the few remaining updates needed to facilitate the roll-out of ETH 2.0 phase 0:
“As I understand it, we are good to go: deposit contract in the next few days; beacon chain genesis 6-8 weeks later.”
However, the PegaSys engineering group developer emphasized his prediction “is not an official statement.”
To complete phase 0’s launch, 500,000 Ether will need to be locked for staking after the beacon chain goes live, followed by a week-long genesis delay to give the network time to prepare.
According to Edgington, the new release also strengthens Ethereum against denial-of-service attacks, implements the genesis delay and a temporary quadrupling of penalty fees.
Penalties were increased in response to the “slightly bumpy” genesis “dress rehearsal” on the Spadina test network at the end of September, and what is now “very low participation” on the Medalla testnet.
The developer described the fee hike as “a temporary measure to give stakers more confidence in case we hit trouble.” Despite low testnet participation, Edgington firmly believes the network is ready to transition into phase 0:
“I think people are getting a bit bored of testnests. It’s time to move on […] we need to launch Phase 0 asap.”
Edgington’s post comes after a successful trial on the Zinken testnet last week, which Set Protocol’s Anthony Sassano described as the “second last dress rehearsal testnet before we finally set an ETH 2 phase 0 mainnet launch date.”
Ethereum Is Beating Bitcoin In More Ways Than One
Interest in bitcoin and other cryptocurrencies, including ethereum, is booming—fueled by unprecedented central bank stimulus measures and rocketing demand for alternative finance.
The bitcoin price, up around 30% so far this year, is being left in the dust by huge gains seen by some smaller cryptocurrencies.
Ethereum, the second most valuable cryptocurrency after bitcoin, has almost doubled in value so far this year—and the number of active ethereum addresses is growing at nearly twice the rate of bitcoin’s.
Bitcoin remains the world’s most valuable cryptocurrency by a wide margin, though a recent rally in … [+] the price of some smaller cryptocurrencies has left bitcoin in the dust.
Ethereum’s active address count has increased by 118% since the beginning of the year, data from blockchain analytics firm Messari, first reported by crypto news site Decrypt, has shown.
Meanwhile, bitcoin’s active address count has increased by just 49%.
“The level of development on ethereum is crazy: initial coin offerings, stablecoins, non-fungible tokens, decentralized exchanges and other decentralized finance applications, Web 3 use cases,” Messari chief executive Ryan Selkis said via email, though he added bitcoin remains “the industry’s dominant asset and most important project.”
The ethereum price has also surged this year, with ethereum’s tradable token ether now trading at around $240—up almost 90% from $130 at the start of January. Bitcoin, on the other hand, has seen its post-coronavirus crash rally halted in its tracks since May with bitcoin repeatedly trying and failing to break the psychological $10,000 per bitcoin level.
Despite the excitement swirling around ethereum, recent setbacks, including a warning that ethereum 2.0 may be delayed again, is leaving the door open for competitors.
“There’s a lot of demand for smart contract platforms that scale, so there’s a big opening in the market right now with ethereum 2.0 delayed, [processing] prices high, and well-funded competitors launching imminently,” Selkis said.
MORE FROM FORBES‘Let’s All Get Rich’-Teen TikTok Traders Want To Send ‘Joke’ Bitcoin Rival Dogecoin To The MoonBy Billy Bambrough
The ethereum price has ticked up over the last 12 months with ethereum outpacing bitcoin’s recent … [+] rally by a considerable margin.
One such cryptocurrency, chainlink, has been boosted by a surge of interest in decentralized finance, sometimes known as DeFi—the idea that blockchain entrepreneurs can use bitcoin and crypto technology to recreate traditional financial instruments such as loans and insurance.
The chainlink price is up by around 1,000% on the last year, hitting fresh all-time highs over the last few days.
However, some cryptocurrency and ethereum developers have cautioned against investors viewing blockchains and cryptocurrency tokens as in competition.
“Viewing other blockchains as competitors to ethereum isn’t the right framework to view the crypto space,” Kosala Hemachandra, founder and chief executive of MyEtherWallet, who’s been developing on ethereum since its 2015 launch, said via email, adding delays to ethereum 2.0 “aren’t stopping or slowing the many projects building on ethereum.”
DeFi has been found to be one of the biggest drivers of ethereum growth in recent months, with DeFi applications accounting for over 97% of all decentralized app volume on ethereum according to a July report from Dapp.com.
“Different blockchains have separate goals and purposes,” Hemachandra said.
“Some are primarily focused on value transactions while others support decentralized app development, for example. You have to look beyond market cap to really evaluate blockchain development.”
Author: By Billy Bambrough