Bitcoin (BTC) has been showing strength in recent days as the price rallied from $9,300 to as high as $9,800. However, more strength is seen from Ethereum’s Ether (ETH) — the second-ranked cryptocurrency by market capitalization — as this cryptocurrency rallied from $225 to $246.
Let’s look at the ETH charts as Ether has been outperforming BTC significantly in recent days. The main question is: can Ethereum finally start catching up to Bitcoin?
Crypto market daily performance. Source: Coin360
The crucial support to hold, between $215-220, has seen a brief test and immediate bounce up. Such a bounce implies that buyers are eager to step in and are significantly pushing up the price.
ETH/USDT 1-day chart. Source: TradingView
Essentially, Ether is currently acting above the 100-day and 200-day Moving Average (MA), which is a bullish indicator. Alongside with that strong signal, the volume has been increasing as of late.
Often, volume precedes price, and combining this fact with the sideways range ETH has been in, an increase in volume shows accumulation.
Similarly, the price has been in an uptrend since March 12, as the cryptocurrency is continually flipping the previous resistance into support. The former S/R flip was done with the $217-222 area.
Such a support/resistance flip implies further upwards strength, with $250 as the next target. The price of Ether is staying fairly close to this resistance zone.
If ETH breaks $250, then the $290 level may not hold like last time, as that’s not a significant resistance zone. More likely, ETH/USD may see a quick rise to $330 or even $360.
Such a rally would classify a new higher high, which is another bullish sign. The term “disbelief” could soon be applied.
ETH/USDT 4-hour chart. Source: TradingView
The 4-hour chart for Ether is showing a clear breakout from a downtrend with the price rallying towards the range resistance at $247-252.
However, does that mean that Ether is likely to break $250 in one-go? Definitely not because more ranging is expected before a substantial breakout through the resistance. In other words, this would mean Bitcoin breaking the $10,500 barrier.
Short term, a potential retrace towards the $232-235 level is not out of the books and would be healthy. In that regard, the previous support of $234 should act as support, fueling a potential rally above $250.
Finally, as the resistance between $247-252 has been tested several times, the resistance becomes weaker. A renewed test of the resistance zone would most likely end up in a breakout to the upside.
Altcoin market capitalization cryptocurrency 1-day chart. Source: TradingView
The altcoin market capitalization is showing strength, as it’s still acting above the 100-Day and 200-Day MA. Similarly, the required support test of the $82 billion levels occurred and confirmed the S/R flip.
To justify further upwards continuation, $82 billion had to hold as support, and it did.
Thus, continuation above $95 billion resistance seems likely. This would also open the door to the $113 billion and $135 billion levels alongside massive rallies for most altcoins across the board.
As the total altcoin market capitalization is heavily lagging behind Bitcoin, arguments could be made that Ether is a significant trigger for altcoins to start rallying.
Once Ethereum moves, the rest of the altcoins usually follow suit. This is because Ether is the biggest altcoin and the majority of the projects are built on the Ethereum network.
Moreover, the price of Bitcoin is currently 50% below the all-time high. Ether is still hovering at 80% below the all-time high, which shows the weakness of altcoins in past years, significantly underperforming on Bitcoin.
Now, post-halving, the price of Bitcoin is stabilizing and the hype is arguably shifting from Bitcoin towards altcoins as seen in recent altcoins surges including Ether.
ETH/BTC 1-day chart. Source: TradingView
The price of Ether is still in consolidation. Constant lower highs and higher lows are typical signals of compression, which often leads to expansion and an increase in volatility.
In this regard, Ether is a beautiful example of such compression. Zilliqa (ZIL) also showed this, which led to a significant increase in price.
The key area to hold for ETH is the 0.023 sats (BTC) level. This can still be tested as potential support, confluent with the 100-Day and 200-Day MAs. As long as that holds, the top-ranked cryptocurrency by market cap can be considered bullish, and further upwards momentum is likely.
If ETH holds that level, the next significant resistance zone to break through is between 0.0275-0.03 sats. If Ether can crack that resistance zone, 0.04 sats is the next target.
If Ether decides to rally with Bitcoin, a significant surge above $360 could occur, and price levels of $500 shouldn’t come as a surprise.
On the flip side, if the price of Ether dives under the 100-Day and 200-Day MAs, a retest of the lows becomes likely. Keep in mind that the 100-Day and 200-Day MAs are crucial indicators for bull/bear momentum here. Losing them would indicate further downwards pressure.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Author: by admin
Binance Announces B2B Solution for Merchants to Natively Integrate Buy Crypto Function
MOSCOW, June 24, 2020 /PRNewswire/ — Binance, the global blockchain company behind the world’s largest digital asset exchange by trading volume and users, today announced Binance Access, a business-to-business (B2B) solution for merchants, vendors and wallets to integrate a “buy crypto” functionality on their platform. By integrating Binance Access, merchants and vendors are able to allow their users to natively buy crypto directly on their platform through Binance without leaving its interface.
Binance Access is a standard API operated on Binance.com, which is made available to clients and partners as part of Binance’s Open Platform initiative. Binance Access will automatically allow users to create a Binance account after logging in to the merchant’s site. Users can buy crypto directly from the merchant’s interface using their available fiat balance. While the purchased crypto goes directly into the user’s Binance account to ensure the highest level of security and participation in Binance’s SAFU program, users can continue to buy crypto on the merchant platform.
“Binance Access allows businesses to provide a one-stop exchange service to their customers and users without operating an exchange, streamlining the processfor both service providers and the end-users,” said Binance CEO Changpeng Zhao (CZ). “By providing other industry players and businesses with the tools and services to build the ecosystem, we hope to continue lowering the entry barrier to crypto and enabling more solutions to boost adoption as an infrastructure provider.”
Binance Access is currently customized for businesses operating in the digital asset space, including vendors accepting payments in crypto and crypto wallets, allowing them to expand their offerings and new opportunities to scale in the crypto ecosystem. Merchants and businesses looking to integrate the Binance Access solution must have fiat capability and be fully compliant in the jurisdictions they service to be eligible.
The seamless integration of the solution involves the implementation of a standard API and integration of the “buy crypto” functionality into the platform interface and is ready for use shortly after. If the user has already passed KYC (Know Your Customer) verification on the merchant’s platform, no additional verification is required on Binance. E-wallet platform Advcash is the first platform that has integrated the Binance Access solution.
Earlier this year, Binance introduced the Open Platform initiative committed to providing infrastructure solutions and resources to the larger industry that help them build sustainable growth for the global crypto ecosystem. Initiatives under the Open Platform include the Binance Brokerage Program, Binance Cloud and Binance Widget.
To learn more, contact firstname.lastname@example.org and apply here to join the Binance Access program.
Binance is the world’s leading blockchain and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more. For more information, visit: https://www.binance.com.
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Why Is Russia’s Crypto Regulation Treading Water?
Russia has long been home to a vibrant crypto retail market, yet the nation’s regulation of digital assets still lags behind. As a spate of stakeholders and disparate regulatory authorities struggles to figure out a coherent policy framework within a bureaucratic system, much of the cryptocurrency industry remains outside the realm of regulated economic activity — to the chagrin of many entrepreneurs.
The central piece of crypto legislation — a bill called “On Digital Financial Assets” (DFA) — progressed through its first round of debate in Russia’s legislature in May 2018, but has remained in the works ever since, stranding the local crypto industry in legal limbo.
Past few weeks saw a spike in regulators’ activity, triggered by the leak of proposed amendments to the bill that revealed a sharp prohibitive turn. Could this be an unpleasant endpoint in the authorities’ regulatory thinking, or is it merely another twist on the rocky road to a uniform approach to cryptocurrencies?
It’s tough to find material on Russian governmental institutions’ stance on cryptocurrencies before October 2017. An unsurprising exception is the Central Bank of Russia (CBR), which issued its first statement on digital money in early 2014.
The regulator said that issuance of “money surrogates” was against federal law, and warned that exchanging “virtual currencies” for fiat money or goods and services could be viewed as a suspicious activity under anti-money laundering and terrorism financing regulations. CBR’s opposition to legalizing circulation of cryptocurrencies has not faltered ever since.
As the rate of adoption exploded, it became clear that the emerging sector requires specialized legislation. In October 2017, President Putin charged the government and CBR with legally defining financial technology concepts such as distributed ledger, cryptocurrency, token and smart contract, as well as developing regulatory frameworks for crypto mining and initial coin offerings (ICOs).
According to some experts, regulators approached the task as a box-ticking exercise. Artem Tolkachev, founder and CEO of digital asset investment platform Tokenomica, told Cointelegraph:
“Given the Central Bank’s prohibitive stance and other lawmaking actors’ lack of expertise with the subject, the [presidential] order has been executed in a purely formal fashion — with the view to ostensibly develop regulation while refraining from taking any tangible decisions in the text. The resulting bill, “On Digital Financial Assets,” has gone through several editions, but it never got close to regulating the most pressing matters: the legal status of cryptocurrencies, rules for their exchange, the use of utility tokens for fundraising, rules of compliance and identification for digital asset holders.”
In order to become federal law, legislation has to pass three readings in the State Duma, Russia’s parliament. The original version of the DFA bill, registered with the Duma in March 2018, contained definitions of terms such as digital financial asset, distributed ledger of transactions, mining, cryptocurrency, token and smart contract. In May, the bill passed the first reading, only to get stuck in the now two year-long revision process ahead of the second.
Apparently, amendments introduced to the bill between the readings became a battleground for various interested parties within and close to the government. George Bryanov, an expert at the faculty of finance and banking at The Russian Presidential Academy of National Economy and Public Administration (RANEPA), told Cointelegraph:
“The bill’s inhibition is due to, among other things, the sheer number of stakeholders. There are big mining companies like Nornikel and Rusal that could make use of security tokens, the CBR that wants to retain monopolistic oversight over the entire financial market, and security and revenue services that are concerned about theAnti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) aspect.”
The fog of war dims much of the power dynamics underlying the bill’s transformation in the past two years, but we can still observe milestones and tentative outcomes. The version of the text that the Duma’s Financial Market Committee put forward for the second reading was stripped of definitions of cryptocurrency and smart contracts altogether, suggesting that the CBR had the stronger hand in that round.
Another factor that could hinder the legislation’s progress is the Russian crypto industry’s fundamental discontent with some of the principles that the bill codifies. Antonina Levashenko, Director of Russia-OECD Center at RANEPA, explained to Cointelegraph:
“The bill is faltering because it includes some norms with which the business community disagrees. Particularly, it restricts the use of digital currencies in a way that will lead to their illicit use and the emergence of a shadow market. […] There is no provision for trading cryptocurrency or exchanging it for goods and services, which will result in its depreciation. In addition, there are issues with the operation of foreign-based exchanges, whose regulation in Russia is not even discussed.”
It is worth noting that the corpus of Russian law that is supposed to regulate digital asset space is not confined to the DFA bill alone. Anticipating that at least some forms of digital assets will eventually get a legal definition, lawmakers are considering or have already implemented changes to adjacent laws and codes.
For one, a new object of law, called digital rights, was introduced to the Russian Civil Code in October 2019. Digital rights are defined as contractual or other rights whose substance and execution condition s are contained in an information system such as blockchain. The new clause does not offer examples of such rights, but it appears that this norm will act in conjunction with other forthcoming pieces of legislation such as the DFA law.
On the law enforcement side, the Ministry of the Interior and a few other executive agencies are reportedly working on the legal framework to allow confiscation of crypto assets as part of the judicial process.
On May 21, 2020, almost exactly two years after the DFA bill passed its first reading, a leaked letter from the Duma’s Financial Market Committee to the Ministry of Economic Development revealed a series of amendments that the MPs proposed to introduce to Russia’s administrative and criminal codes. The measures stipulated heavy fines for illicit use, exchange, and issuance of digital assets and digital currencies. The document’s authors also proposed to qualify the same activities on a grand scale as a felony punishable by jail time.
The leaked package, which became public a few days later, also contained a new version of the DFA bill, as well as a draft of a now-separate bill on digital currencies. The latter defines crypto as property and effectively bans its issuance and exchange. Many industry experts and market participants decried the proposed measures, contending that in the present form they will effectively banish all crypto-related activity from Russia.
The criticism was not limited to the crypto industry, as many departments of the government began weighing in. On June 10, the Ministry of Economic Development said in a letter to the State Duma that the proposed blanket ban would force all crypto operations out of Russia and thus put the national economy at a disadvantage. At the same time, given the transnational nature of digital money, an unregulated black market would emerge. The ministry suggested shifting the overall regulatory approach toward creating mechanisms of controlled exchange of digital currencies.
On the same day, the Ministry of Communications in its own letter to the Financial Market Committee made a similar point about the dangers of creating a massive shadow market should the ban take effect. The department also stressed how the measure could hinder the development of Russia’s blockchain sector, hurt those who already own digital assets, and even negatively affect activities that are not directly related to crypto, such as businesses’ loyalty programs and crowdfunding. Notably, the letter also defends cryptocurrency mining as a “socially beneficial commercial activity.”
A week later, the Ministry of Justice took a jab at the proposed legislation, this time on more technical grounds. The department noted that the blanket ban on exchanging cryptocurrency is at odds with the need for court enforcement officers to be able to sell digital assets confiscated in judicial proceedings.
Elina Sidorenko, the Head of the State Duma’s task force on the assessment of risks posed by cryptocurrency, wrote in her Telegram channel that the prohibitive bill has “sprung a leak,” as it was deemed “unsatisfactory” by the majority of government and industry experts. She added that it is unlikely that the parliament will make any progress on this front during the summer, and suggested that the industry brace for the fall legislative session.
Anatoly Aksakov, the Chairman of the Duma’s Financial Market Committee, acknowledged that the digital currencies bill proved contentious, which warrants further discussion. However, in his opinion, the “positions are consolidated” in the digital assets bill, making it a likely candidate for a speedy enactment.
The overwhelming negative response to the proposed blanket ban on cryptocurrency trading illustrates the diversity of views on cryptocurrency in the highest tiers of the Russian political system. While the Central Bank remains adamant that there is no place for digital money’s legal status, many other state institutions share a clear understanding that sweeping a whole thriving sector of economic activity under the rug will do more harm than good.