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Are the Ethereum Bulls ready for a recovery?

The fear of COVID-19’s proliferation and impact continue to keep more investors out of the market

Last week and this Monday were difficult for the global financial markets, and the crash was caused by the Coronavirus pandemic. Folowing by traditional financial instruments, the crypto market also collapsed and Bitcoin lost 34% in the last 7 days. Ethereum dropped with 43%, Ripple’s XRP crashed with 30% and Bitcoin Cash lost 33%.

This morning, major crypto currencies have found some support. But I expect the risk appetite to continue to be affected by news around the Coronavirus. Despite the current apparent stability, investors seem to be shying away from the market, preferring to watch only from the sidelines. The downturn last week showed that Bitcoin’s safe-haven status was shattered.

Recovering over $ 6,000 will be required for the BTC bulls to pave the way for more price action towards $ 7,000. But BTC/USD is not ready technically. In order to pave the way for significant price movements north, the pair must overcome the sales pressure at H4 50 SMA ($ 6000). The next critical resistance is at the $ 7000 psychological level. And after that comes the 100 SMA, which is localized at $ 7,339 on a four-hour chart.

Earlier in the week, total crypto market cap hit a high of $ 164.76 billion before slipping to $ 131.81 bln. Tuesday’s bullish momentum led to a recovery of $ 150.13 billion on Wednesday morning.

Bitcoin dominance returned to levels of 64% on Monday’s sell-off. At the time of writing is around 63.8%. 24-hour trading volumes in the crypto market amount to $ 121.05 billion.

 

Ethreum in consolidation after last week’s collapse

Like other crypto assets, Ethereum is experiencing a huge panic sell-off and the price has plummeted from $ 206 to $ 86. However, after rising above the $ 100 level, Ethereum began its appreciation against the USD yesterday. But mainly the price is consolidating into a triangle on a daily chart and is now trying to break the downside trend line of the figure. On the hourly chart Ethereum is currently testing the lower curve of the 20-day Bollinger Bands.

Immediate resistance is seen at $ 115.50, which is 23.6% Fibo correction on the recent drop from $ 206 to the bottom $ 86.46.

If the bulls manage to break through the important $ 120 resistance zone (also H1 100-day SMA), Ethereum may be ready for a strong upward move in the near future. The next key obstacle for the bulls is near the $ 132 and $ 146 levels.

However, if Ethereum fails to break both the triangle and the resistance at $ 120 up, this could trigger another decline. The closest support levels are close to $ 112 and $ 110.

The RSI indicator sits on the edge of the oversold area. The SMA 200 is about to cross above SMA 20 on a daily chart. If it does, we will have confirmation of the heavily bearish “death cross” model. What does all this tell us? The answer is that while bulls may responsible for short-term movement, overall market sentiment remains bearish. In addition, MACD also slumping down.

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Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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Ethereum’s Bulls Can Pull Away Before Testing $ 200

After two bearish days, this morning Bitcoin made an attempt to raise to $ 9,293. But then the first cryptocurrency resumed its decline and formed a low at $ 9,180.2.

For the other major cryptocurrencies, it was a mixed day on Tuesday. Ripple’s XRP and Stellar’s Lumen rose 4.88% and 3.99% respectively, while EOS gained 0.46%.

Yesterday, however, was a red day for the rest of the coins. Bitcoin Cash SV slid 3.56% to lead the others downside. Binance Coin (-1.74%), Bitcoin Cash ABC (-1.55%), Cardano’s ADA (-1.95%), Litecoin (-2.51%) and Monero’s XMR (-2.38%) also saw large losses. Ethereum and Tron’s TRX recorded modest losses of 0.62% and 0.60% for the day.

At the time of writing, the total market capitalization is $ 258.68 billion. Bitcoin dominance drops again to levels below 65% after Tuesday’s loss. Bitcoin dominance was 64.7% on Wednesday morning. Trade volume is $ 107.30 billion.

 

The Crypto Community Expects the Release of Ethereum Futures as Good News

The Commodity Futures Trading Commission (CFTC) believes that Ethereum futures are likely to start in the future. However, specific details of when or where Ethereum futures will be launched are not yet revealed. Keep in mind that while futures will theoretically increase institutional interest in the Ethereum market, it could also cause a price crashes.

In addition, there has been a consistent increase in hoarding of Ether by miners since the end of 2019. And this has led some experts to conclude that Ethereum’s credibility is growing.

 

ETH/USD Retreats from the Recent High, But the Bullish Trend is Still Intact

ETC/USD is moving in a good uptrend on the daily chart, after hit a bottom at $ 116.30 on December 18th. And now it looks like the price is consolidating in an upside flag on the hourly chart.

A upside breakout will obviously be bullish for Ethereum, but we will need to see sustainable movement above $ 190 to win the bulls momentum. Therefore, the closest resistance is created by the current high near $ 195. If we break above it, we should see a test of psychological $ 200 level. Most likely, the bulls will not be able to clear this area from the first attempt, but when it happens the September 19, 2019 high at $ 223.77 will be in focus.

On downside, a clear break below the bullish flag is needed to give the bears extra momentum. The first support coming with the SMA 200, localized at $ 174.40. A breakthrough below this area will bring more sellers in the market and push the price to $ 170.00. This round level is followed by $ 158.00 support, reinforced by SMA 100 on the daily chart.

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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Ethereum (ETH) Gaining Momentum, the $ 200 level seems inevitable

The major crypto currencies retreat

The cryptocurrency market on Wednesday is characterized by both red and green signals. Leading the retracement are the three major crypto currencies Bitcoin, Ethereum and Ripple.

Bitcoin stepped back, shifting the focus back to $ 9,000 after failing to break the $ 9,500 resistance yesterday.

Ethereum, on the other hand, first fell against the background of shrinking volatility. The price was struggling to keep above the $ 190 support, but the bears found a way to lower the price to $ 187 (current market value).

 

China encourages blockchain embracement

Earlier this week, the overall capitalization of the crypto market peaked at $ 257.76 billion on Monday. However, on Tuesday, the market capitalization of crypto currencies dropped again to below $ 250 billion before finding support. At the time of writing, total market capitalization is $ 251.85 billion.

While Bitcoin dominance has maintained steady levels of 67% since Monday’s pullback, trading volumes fell back to sub-$ 100 billion levels.

On the news front, reports from China that EOS and Tron coming out as top-ranked blockchain projects delivered strong support. The Ministry of Industry has published a chart that has garnered more attention than usual. Interest emerged following the recent support for blockchain technology by Chinese President Xi Jinping.

Other notable representatives in China’s top 10 blockchain include Ethereum ranked 3rd and Stellar’s Lumen ranked 10th. Bitcoin came in at number 11.

 

Ethereum continues trending in an upward channel against the dollar

Ethereum formed a double bottom in the support area of ​​$ 150-163, within the formation of a falling wedge. This double bottom model led to a strong jump in volumes, after which the price bounce and continued to fluctuate around $ 185.

Currently, the ETH/USD daily chart is moving in an upside price channel. This Wednesday, the price is trading near the high of $ 191 and will have to break the resistance at $ 193 to continue the positive momentum. This is a crucial area, as we see in the history of the chart. During the first part of 2019, the $ 185-190 area remained strong resistance before the breakthrough in May.

In the case of a broad-based crypto market rebound, Ethereum can test the second major resistance level at $ 203. The MACD indicator shows an increase in the upward momentum.

In the coming weeks and months, it will be crucial to see some continuation to the upside for more confirmation. However, it’s unlikely to expect a drop below the $ 155 area after the last rebound upwards.

Because Ether (ETH) is the largest altcoin, its chart shows a model identical to the movements in the overall market capitalization of the Altcoins. Therefore, note that Ethereum can also be described as a leading indicator of future movements of the Altcoins.

 

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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Did the bulls on Ethereum died?

Analysis of Bitcoin, Ethereum and Ripple weekly losses

Last week, it was like a trail of horror for the crypto market, which ended with a downward spiral on Tuesday. Let’s take a look at the top three coins in the last week.

Tuesday was a heavily bearish day for BTC/USD, with the price dropping from $ 11,020 to $ 9,370. BTC/USD recovered slightly earlier today and traded around $ 9,520. So, the main crypto currency registered a decline of 25.92% within the last seven days. Some analysts believe that the current pressure on Bitcoin is a technical factor driven by sellers taking control of the market after the dominant crypto coin dropped below the key support levels of $ 11,000 and $ 10,700. Whatever is the reason, the bears on BTC/USD marked their strongest week since March 2018.

ETH/USD fell from $ 234.50 to $ 192.71, losing a staggering 35% of its value. ETH/USD is on course to finish its worst week since September 2018. XRP/USD, on the other hand, is on course to mark its fourth downside week in a row. XRP/USD fell from $ 0.32 to $ 0.2864. In the last four weeks, XRP/USD dropped from $ 0.4962 to $ 0.2864, losing about 40% of its estimate.

 

What are the reasons for this fall?

In my opinion, the latest fundamental news from the United States is at the root of this collapse. On the one hand, the criticism of Bitcoin by US President Trump and Treasury Secretary Mnuchin may have contributed to the fall. In addition, US lawmakers “grilled” Facebook because of the company’s plans for its own crypto currency. And this shows that political and regulatory control over digital coins is intensifying.

The social media giant is struggling to attract Washington on his side after it shocked regulators and lawmakers with its announcement on June 18 that it was hoping to release his own coin called Libra in 2020.

David Marcus, CEO of Calibra, will speak to the Congress on July 16-17. With that in mind, I think it is likely that the crypto currencies will continue to decline. Now, the question is about the future attitude of the authorities towards to the crypto market as a whole. Ultimately, if such a bill to ban the release of digital currencies become a law, it should put a heavy pressure on Bitcoin and the whole altcoins market.

 

Ethereum Price Analysis

The technical analysis shows that the price of Ethereum is currently highly underestimated, so any upside correction may be on the horizon.

On the daily chart, ETH/USD broke below the bottom line of the 20-day Bollinger band, indicating that it is undervalued. At the same time, the widening of the channel, or so-called Bollinger jaw, indicates growing market volatility.

Meanwhile, it looks like the 50-day SMA is looking to cross the 20-day SMA on the daily chart, which is a bearish signal. And the signal line is diverging away even more from the convergence/divergence line of the MACD indicator, showing increasing bearish momentum. The Relative Strength Index (RSI), however, enters the oversold  area.

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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