Ethereum First Break Above $500 After 2.5 Years
Ethereum (ETH/USD) is finally making a bullish breakout. The previous bullish swing was 3 years ago when price action went above $1,300.
The pullback and correction was strong and lengthy. Can the ETH/USD bulls really wrestle back full control from the bears?
The ETH/USD continued higher over the weekend crossing the round $500 mark. The new high is also breaking above the -61.8% Fibonacci target. This is a typical target for a wave C so a break indicates that a wave 3 is becoming more likely.
The next confirmation of a wave 3 occurs if price action is able to break above the -100% Fibonacci target. A bull flag could develop as well (orange arrows) but eventually a breakout is expected (green arrows).
On the 4 hour chart, the bullish momentum remains strong. Price action seems to be in a wave 3 (grey). Once this wave 3 is completed, we are expecting a wave 4 correction. Usually wave 4s are long and choppy (orange arrows) like a bull flag continuation chart pattern.
A break below the top of wave 1 (green box) invalidates (red circle) the 5 wave pattern (grey). But it does not invalidate the entire uptrend due to the expected support at the long-term moving averages.
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
For a look at all of today’s economic events, check out our economic calendar.
- Ethereum Hits 2.5 Year High on Supply Deficit Woes; More Gains Ahead?
- New Ethereum-Based Crypto Asset Surges 684% Amid Altcoin Breakout
- Ethereum (ETH) Clears $600, Making A Retest Of All-Time Highs Imminent
- Ethereum 2.0 Deposit Contracts Boost to 292,672 ETH Just a Week before Mainnet Launch
- Ethereum and Ripple are exploding higher thanks to the growing interest in cryptocurrencies that lifted Bitcoin above $18,000 | Currency News | Financial and Business News
Ethereum Hits 2.5 Year High on Supply Deficit Woes; More Gains Ahead?
The cost to purchase one Ethereum (ETH) token surged to its two-year high in the days leading up to its transformation into a proof-of-stake asset.
The ETH/USD exchange rate [almost] hit $600 on Monday following a 6.21 percent upside move, its highest level since May 2018. Traders apprehensively increased their bullish bets on the pair after anticipating a supply deficit in the Etherum market.
In retrospect, Ethereum expects to undergo a major network upgrade under the title of Ethereum 2.0. The technical advancement will increase its blockchain’s scalability, energy efficiency, and security without compromising its inherent decentralization.
Meanwhile, Ethereum 2.0 also proposes to change ETH as an asset. The upgrade will mainly attach three subclass attributes to the native token: that of Capital Assets, Commodities, and Stores of Value.
The Ethereum Foundation requires the ETH users to stake their holdings into a smart contract that would activate the ETH 2.0 mainnet. On the whole, the contract requires 524,288 ETH tokens. In return, it will provide stakers with attractive annual returns.
As of Monday, the ETH 2.0 smart contract has collected about 50 percent of its targeted amount. If it successfully obtains 524,288 ETH by today, then the team will launch ETH 2.0 on December 1. Failing to collect the required number of Ethereum tokens will either delay the launch.
The closer we get to 100% of 524K threshold, the higher the price of $ETH… pic.twitter.com/NO3uCVLoJU
— SpartanBlack (@SpartanBlack_1) November 23, 2020
Escalating ETH deposits will remove a small portion of the tokens out of circulation. The supply deficiency, coupled with Ethereum rewards, could prompt more ETH holders to deposit their holdings into the ETH 2.0 smart contract. That somewhat explains why ETH/USD is rallying upwards.
“A steadily rising ratio signals the community’s confidence in ETH 2.0 and the fact that people are willing to forego higher yields elsewhere to bet on the future of Ethereum,” explained a member of the Spartan Group, a crypto-focused asset management platform.
Ethereum is practically looking at a resistance-free zone as it eyes a further extension of its upside momentum.
Ethereum is trading upwards towards $800. Source: ETHUSD on TradingView.com
The trade setup against supportive fundamentals looks like this: Ethereum trades upward inside a Rising Wedge pattern; it pulls back on testing the structure’s upper trendline towards the lower trendline (a Short strategy), and it bounces back towards the upper trendline on testing the lower trendline as support (a Long strategy).
The uptrend continues until the ETH/USD tests the Wedge’s apex, where the two trendlines converge. That level is roughly near $832, a level that acted as crucial resistance in April 2018. After testing it, ETH/USD would break out to the downside, falling by as much as the Wedge’s height (~$156).
Author: About The Author
New Ethereum-Based Crypto Asset Surges 684% Amid Altcoin Breakout
A new Ethereum-based crypto asset has posted massive gains in a span of 24 hours as the broader altcoin market ignites a furious bullish ascent.
88mph (MPH) is a decentralized finance (DeFi) newcomer that enables users to lend their crypto assets “at a fixed interest rate with infinite liquidity.” According to 88mph core team member Guillaume Palayer, users can deposit stablecoins and tokens such as USDC (USD Coin), UNI (Uniswap), and yCRV (Curve) to generate yield and farm MPH tokens.
CoinGecko reveals that MPH surged from its all-time low of $20.21 on November 20th to an all-time high of $158.51 on November 21st, representing an increase of over 684% in one day.
However, the DeFi coin’s launch was far from perfect as 88mph hit a few technical snags that could have been exploited by attackers, Palayer said in a blog post.
“There was a bug discovered in the MPHMinter contract that enables a potential attacker to steal all the ETH in the Uniswap pool. It was brought to our attention by samczsun. With his help, we have extracted the ETH into the governance multisig, so all funds are safe. The price of MPH is currently at 0 for this reason.”
Despite the road bumps, MPH still rallied.
First audited by blockchain security firm Quantstamp in July, 88mph also allows users to earn rewards by staking their MPH tokens. The new DeFi asset generates rewards by deducting 10% from the interest when a depositor withdraws and by distributing yield-farmed tokens earned from other protocols linked with 88mph such as Compound (COMP). All rewards are given in the form of DAI (Dai).
As a governance token, MPH gives its holders the power to shape the protocol’s future roadmap.
“The governance process works by having users vote with their MPH tokens on various proposals ranging from protocol parameters to smart ways of using the capital assets stored here – the famous 90% MPH paid back by depositors – for new incentives, capitalization, and growth.”
Ethereum (ETH) Clears $600, Making A Retest Of All-Time Highs Imminent
Ethereum has exploded with the same momentum that Bitcoin did earlier in November, now taking the altcoin’s recovery to over $600. The level is the last major resistance zone before an all-time high retest is due. Here is the level to watch for where a reversal could take place, or if it’s too late and the cryptocurrency will just keep on going from here.
Bitcoin price reaching prices near $20,000 has diverted incoming capital toward altcoins once again. Ethereum had been feigning signs of weakness, but instead was gearing up enough strength under the radar to make a similar-sized push as Bitcoin.
With Ethereum being the most robust network of the rest of the space and in second in place by rank, it is the first logical coin to put money into next to BTC.
And investors are doing just that. Ethereum and other major altcoins are posting larger gains than Bitcoin itself.
The ongoing crypto market rally has pushed Ethereum as of this morning past the pivotal $600 mark. The level is the first area in a series of four weekly resistance zones.
The altcoin spent very little time trading around those prices, however, and much like Bitcoin has demonstrated recently, they might not pose much threat to the current bullish momentum.
At this rate, and given the sudden revival of interest in the cryptocurrency market, a retest of both Bitcoin and Ethereum’s all-time highs could very well arrive sooner than later.
Things are undeniably overheated, but conditions are unique in the fact that the dollar is breaking down, and hard assets like crypto are especially bullish in such situations.
How far will this one Ethereum rally go?
This post was originally published on www.newsbtc.com
Ethereum 2.0 Deposit Contracts Boost to 292,672 ETH Just a Week before Mainnet Launch
292,672 ETH enclosed make up more than 55% of Ethereum 2.0 deposit contracts required.
The Ethereum (ETH) community has been paying careful attention to the upcoming Phase 0 launch of Eth2, the next Ethereum generation. To activate the phase, more than 500,000 ETH (or $270 million) must be locked in by the validators or active participants. According to internal sources, this amount is to be reached by November 24. By the moment of writing, the total amount of Ethereum 2.0 deposit contracts has already surpassed 292,672 ETH.
292,320 ETH has been staked in the Eth2 deposit contract.
231,968 more ETH is needed to launch Eth2.
— Eth 2.0 Deposit Contract – Progress Meter Bot (@DepositEth) November 23, 2020
292,672 ETH enclosed make up more than 55% of Ethereum 2.0 deposit contracts required. Notably, on November 17, this amount was only 18%. If the mission of delegating 524 288 ETH from 16 384 validators is completed, the mainnet will launch on December 1. Elsewise, the developers will delay the launch.
Meanwhile, the Ethereum price is soaring. In the last 24 hours, Ethereum has added 7.08% to hit a new high of $581 per token. Its market cap is $65.9 billion.
According to the developers, Ethereum 2.0 (or Serenity) stands for the next generation of Ethereum. It is “a multi-year plan to improve the scalability, security, and programmability of Ethereum, without compromising on decentralization”. To secure the network, Eth2 employs proof-of-stake (PoS). Therefore, traditional mining will become a thing of the past.
The network’s goals include decentralization, resilience, security, simplicity, as well as longevity.
The launch will be conducted in several phases. The first one, Phase 0, or the Beacon Chain, is about tracking the validators and their balances. Ben Edgington, the Eth2 developer, explained:
“There are a number of aspects to this: managing validators and their stakes; nominating the chosen block proposer for each shard at each step; organizing validators into committees to vote on the proposed blocks; applying the consensus rules; applying rewards and penalties to validators; and, being an anchor point on which the shards register their states to facilitate cross-shard transactions.”
To get ETH on the Beacon Chain, validators just have to submit the deposits. After a validator public key reaches a balance of 32 ETH, the validator becomes active.
Further, Phase 1 comes. It deals with adding, storing, and retrieving the data associated with Eth2’s shards that will expand Ethereum’s capacity to process transactions. Transitioning from proof-of-work (PoW) to proof-of-stake (PoS) will end with Phase 2. The functionality of the entire system will start to come together. In other words, smart contracts will run on all of the shards. Besides, Phase 2 introduces the concept of ‘Execution Environments (EEs)’. Every shard has access to all execution environments and can make transactions within them as well as run and interact with smart contracts.
next Altcoin News, Blockchain News, Cryptocurrency news, Ethereum News, News
Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.
Ethereum and Ripple are exploding higher thanks to the growing interest in cryptocurrencies that lifted Bitcoin above $18,000 | Currency News | Financial and Business News
Yuriko Nakao/Getty Images
Bitcoin’s growing reputation as an inflation hedge is boosting the price of other cryptocurrencies. Ethereum, the second-largest cryptocurrency platform in the world, rose by more than 6% to $597 on Monday, its highest since mid 2018.
Ethereum is still well below its all-time high of about $1,500 recorded in January 2018, but its price has increased four-fold since March 2020, when the pandemic brought global money markets to a grinding halt. Smaller rival Ripple’s price has doubled in the month of November alone.
The sudden price surge could be explained in large part because of Bitcoin’s massive rally this year. The digital token is up 160% on the year and was trading around $18,632 on Monday, near three-year highs.
While both crypto assets have risen massively in price, their market capitalization is still dwarfed by Bitcoin. Ethereum represents about $40.6 billion in market cap, Ripple stands at about $48.5 billion, while Bitcoin touched an all-time high of $336 billion last week.
Michael Sonnenshein, managing director of the world’s biggest crypto fund Grayscale Investments, told Business Insider last week that he believes Bitcoin is the next step in the evolution of money.
As the pandemic continues to quarantine huge swathes of the global population, people are spending more time online, and they’re probably getting more interested in cryptocurrencies like Ethereum, Bernard Meyer, senior researcher at CyberNews.com, said.
In the past, a number of high-profile hacking and security breaches resulted in millions of dollars’ worth of bitcoin and other cryptocurrencies being stolen on various platforms. While security across the major trading platforms has tightened up, would-be Ethereum buyers need to make sure they are familiar with their token’s smart contract – a form of account on the Ethereum blockchain that can send transactions across the network.
“If they’re on Ethereum, they’ll be using what’s known as a smart contract to sort of automate the process of sending and receiving payments for users. But these smart contracts can have some big security holes in them,” Meyer said.
Investors need to check the type of smart contract they’re using and whether it has been audited and verified, to limit the chances of something going wrong.
Author: News Bureau