The price of Ethereum is declining against both Bitcoin and the U.S. dollar. This comes as the dominant cryptocurrency soared to a new all-time high in the last several hours.
As Bitcoin began to climb towards $49,900, the price of Ethereum actually dropped in the same period.
Although Ethereum has sometimes lagged behind Bitcoin during a strong BTC uptrend, it is rare to see ETH drop so sharply when BTC is soaring.
Traders say that it most likely was a severe case of the ETH/BTC pair breaking down as the price of Bitcoin started to rally.
Throughout the past few weeks, the ETH/BTC pair has seen both ETH outperforming Bitcoin at times and BTC regaining the momentum on some days.
On February 14, as Bitcoin reached a new all-time high and took most of the momentum in the cryptocurrency market with it, large-cap cryptocurrencies, including Ether, plunged.
A cryptocurrency trader known as Feras Y said:
“Since #Bitcoin is taking the lead now, $ETHBTC is normally pulling back Currently testing the neckline for the proposed iH&S (following since months, refer to thread) I want 2 c the neckline holding for potential 50-100% Move up as explained.”
In the near term, ETH could perform strongly against BTC given that Bitcoin cleanly breaks out of the $50,000 resistance area and consolidates above it.
Currently, traders remain uncertain where Bitcoin is headed in the near term, due to the $50,000 resistance area acting as a large sell wall. Hence, a clean break past that level would likely lead ETH to also break out of its current price range.
Analysts at Santiment found that the number of Ethereum whales has declined in the past month as the price of ETH reached a new all-time high.
This metric can be interpreted in different ways. Some could argue that since whales have sold, it shows a bearish trend for ETH in the foreseeable future.
But, considering that ETH is continuing to hit new highs, it can be said that the selling pressure from whales is being absorbed by the market.
The analysts said:
“#Ethereum’s top 100 whale exchange addresses are holding the lowest balance of $ETH tokens (~11.4M) in 27 months. This number has dropped along the way to $ETH’s new #AllTimeHigh. Watch this inverse correlation between price & exchange whales closely!”
With exchange reserves declining and stablecoin inflows rising, technically, ETH is in a strong position to see a continuation of its rally.
It remains to be seen whether it can see a short-term reversal from its recent dip, but based on its price cycle throughout February, a recovery is more likely than a breakdown from the current range.
Ethereum, currently ranked #2 by market cap, is down 2.03% over the past 24 hours. ETH has a market cap of $205.11B with a 24 hour volume of $31.29B.
ETHUSD Chart by TradingView
Author: by admin
Ethereum Remains Strong, Why ETH Could Soon Test $2,000
Ethereum traded to a new all-time high near $1,870 before correcting lower against the US Dollar. ETH price is holding gains and it is likely to accelerate higher towards $2,000.
This past week, bitcoin and ethereum saw a steady increase above $1,700 and $45,000 respectively against the US Dollar. ETH traded to a new all-time high near $1,870 before it started a short-term downside correction.
The price traded below the $1,800 and $1,780 support levels. However, the bulls were active above the $1,750 level. A low is formed near $1,761 and the price is currently consolidating well above the 100 simple moving average (4-hours).
It is testing the $1,820 resistance level. It is close to the 50% Fib retracement level of the recent correction from the $1,870 high to $1,761 low. There is also a major bullish trend line forming with support near $1,800 on the 4-hours chart of ETH/USD.
On the upside, the first key resistance is near the $1,840 level. The 61.8% Fib retracement level of the recent correction from the $1,870 high to $1,761 low might also act as a resistance.
The next major resistance on the upside is near the $1,870 high. A clear break above the $1,850 and $1,870 levels will most likely open the doors for a steady increase. The next major target for the bulls in the near term could be the $2,000 handle.
If Ethereum struggles to gain pace above the $1,850 level, it could correct lower. The first major support on the downside is near the trend line support and $1,800.
A downside break below the trend line support may possibly call for an extended decline below the $1,761 low. The next major support is near the $1,640 level or the 100 simple moving average (4-hours).
4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
4 hours RSI – The RSI for ETH/USD is still above the 50 level.
Major Support Level – $1,800
Major Resistance Level – $1,870
This post was originally published on www.newsbtc.com
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Tron Tops Ethereum in USDT Usage Proportionally
On a proportional foundation, TRON punches above its weight on the subject of stablecoins corresponding to USDT.
Though nearly all of stablecoins make the most of Ethereum, Tron has established itself in its place stablecoin platform. The Tron platform is considerably smaller than Ethereum by whole customers and market capitalization. Nonetheless, it’s competing fairly carefully in stablecoin utilization. To this point, Tether has a $32 billion market capitalization, and over a third of all available USDT is on the Tron platform.
Most decentralized functions and stablecoins had been working superb on the Ethereum transaction till very just lately. They nonetheless are operational, however the development in defi utilization is affecting throughput. Ethereum blocks are getting clogged with transactions. Customers now must pay exorbitant charges as a way to work together. These charges just lately clocked out at a median of over $20 per transaction, a brand new file for Ethereum.
Extra individuals are discovering blockchain. Nonetheless, they don’t essentially wish to spend obscene quantities of cash to work together on it.
Tron is popping up as an Ethereum different. Launched in 2017 by Justin Solar, Tron is another sensible contract platform. Ethereum is actually fifty instances bigger than Tron, with tens of millions of extra lively customers, however folks have realized Tron is a viable USDT storage different.
Providing negligible charges of some cents, extra USDT is flocking to Tron. USDT on the platform now totals near $12.5 billion. It is a substantial quantity when contemplating each tasks’ market capitalization. The quantity testifies to what’s potential when Ethereum bogs down and established sensible contract platforms can supply extra environment friendly transactions.
Stablecoins got here into existence in 2014 with the creation of USDT. Stablecoins supply a vital use case within the blockchain ecosystem. They’re often backed by a bodily asset or pegged to a particular worth level. Stablecoins present customers all the advantages of blockchain expertise, corresponding to decentralized, permissionless, borderless financial entry, however with out the huge worth fluctuations of speculative cryptocurrencies.
Crypto affords a brand new means of monetary sovereignty for customers. Nonetheless, somebody trying to protect their wealth could not be capable of belief Bitcoin or Ether, which might simply drop 20 % or extra in someday.
These issues set the tempo for stablecoins, which supply a non-volatile retailer of worth. The preferred stablecoins, like USDT and USDC, are one-to-one pegged to the US greenback, which means every coin will all the time be price $1. This assured worth stability has created a wonderful switch device and a buffer for merchants trying to displace volatility with out exiting the complete cryptocurrency market.
All these currencies could be particularly compelling to the unbanked and disenfranchised, giving them entry to a steady, straightforward to buy forex for the primary time. As blockchain tech continues to unfold throughout the globe, extra folks will make the most of stablecoins. Tron is working to cement itself as one of many preeminent stablecoin transaction platforms.
Ethereum Cost Analysis: ETH Dealing With Huge Resistance on Its Way to $2,000.
Ethereum has now established another ascending price channel as it trades near the upper boundary. It had rebounded from $1300 at the start of the month and pushed higher to reach a new ATH at $1839 this week.
Over the past four days, Ethereum seems to be struggling to penetrate the resistance at $1800 as it couldn’t close a daily candle above it. For this bullish leg to continue, ETH must break $1800 and breach the ascending price channel’s upper boundary at around $1850.
ETH/USD. Source: TradingView
Looking ahead, the first resistance lies at $1800. This is followed by $1850 (1.618 Fib Extension – Yellow & upper boundary of the channel), $1900, and $1960 (1.272 Fib Extension). Added resistance above $2000 lies at $2060 (1.414 Fib Extension) and $2200.
On the other side, the first support lies at $1685. This is followed by $1600, $1536 (.236 Fib & lower boundary of the channel), $1425 (previous ATH), and $1350 (.382 Fib).
The RSI is showing hints of bearish divergence as it starts to head lower in February while the price has been grinding higher. If this plays out, ETH could see a drop toward the ascending price channel’s lower boundary.
Against Bitcoin, Ethereum is starting to show signs of weakness after dropping almost 20% from the Feb high of 0.046 BTC. It penetrated beneath an ascending trend line earlier in the week and continue to plummet from there.
The coin had been defending the support at 0.0377 BTC (.5 Fib) but crashed beneath this yesterday to reach the current 0.037 BTC level.
ETH/BTC. Source: TradingView
Looking ahead, the first support lies at 0.0361 BTC (March 2019 High). This is followed by 0.0349 BTC (downside 1.272 Fib Extension), 0.0337 BTC (Nov 2020 Highs & 100-day EMA), and 0.0329 BTC (.786 Fib).
On the other side, the first resistance lies at 0.038 BTC. This is followed by 0.0396 BTC (Feb 2019 High), 0.0405 BTC (2020 High), and 0.0416 BTC (2019 High).
The RSI has also plummeted beneath the 50 level, indicating the bears are in control of the market momentum right now. There is some hope with the Stocahstic RSI already in oversold conditions, and it is primed for a bullish crossover signal.
Title: Ethereum Price Analysis: ETH Facing Huge Resistance on Its Way to $2,000
Sourced From: cryptopotato.com/ethereum-price-analysis-eth-facing-huge-resistance-on-its-way-to-2000/
Published Date: Fri, 12 Feb 2021 15:32:42 +0000
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