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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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Ethereum holds around the last highs

The crypto market has stalled this morning after strong growth on Tuesday. All major Altcoins turned their earlier profits while Bitcoin managed to keep them. The total value of all digital assets in circulation was $ 181 billion, compared to $ 185 billion, reached on Tuesday. The average daily volume of trade remains at $ 52 billion.

Bitcoin retains profits against the downside correction of Altcoins

Bitcoin finally broke the range and refreshed the highest levels this year. The first digital coin again visited $ 5,632 for the first time since November 2018. Behind the rally seemed to be technical factors rather than news.

On the fundamental front, Afghanistan and Tunisia are looking to issue bonds based on Bitcoin to help save their devastated economies.

Khalil Sediq, governor of the Central Bank of Afghanistan, told to Asia Times that Afghanistan is trying to create a sovereign crypto bond to raise $ 5.8 billion for the mining, energy and agriculture sectors of the country. Permanent wars and shocks show that the country’s GDP has fallen sharply over the years. At present, 25% of the country’s population is unemployed. Marouane El Abassi, Governor of the Banque Centrale de Tunisie, also said that Tunisia has set up a special group to seriously study the functionality of a sovereign Bitcoin bond. Tunisia is also the first country to issue its own digital currency – e-dinar.

Bitcoin at the time of my writing is trading at $ 5,580, which is 1.45% higher than the same time on Tuesday. Although the short-term trend is bullish, BTC is in overbought territory now. This means that a downside correction is highly probable at this stage. The hourly chart RSI began to turn down, although it is still on the overbought territory. And this signals that the correction phase is not over.

The closest support is $ 5,500. Convincing move below this level will boost the bears’ pressure to test $ 5,400. On the upside, the next strong resistances are 5,730 and the psychological level $ 5,800.

Societe Generale issues tekonized bonds of the Ethereum blockchain

The French specialist credit institution, Societe Generale SFH, issued 100 million euros ($ 112 million) bond as a security token for Ethereum blockchain. The company announced the news yesterday.

The aim of the transaction was to investigate a more efficient way to issue bonds, potentially contributing to better transparency as well as faster transferability and settlement. The company says in the announcement that the product “proposes a new standard for issuances and secondary market bond trading and reduces cost and the number of intermediaries.”

Technical analysis of Ethereum

Ethereum (ETH) dropped yesterday to $ 169, after the epic rise to $ 176. The second-largest coin is currently trading 2.73% down for the past 24 hours and 2.30% up for the past seven days. Ethereum managed to recover from the last intraday low of $ 153.65, moving to a short-term bullish trend.

Despite profit-taking and clashing with sellers in the middle of this month, ETH/USD is trying to stabilize again. On the daily chart, we have a short-term bullish price channel since April 16th. At the moment Ethereum tested the bottom support line around $ 169.40. Rebounding from this level may send the price to the resistance $ 183.50. Otherwise, a clear break below the channel will set $ 164.81, followed by 153.65 as next bears’ targets.

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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ETH/USD opposes consolidation and may be try to escape upside

Ethereum (ETH) stirred up over the past few days, rising above $ 124 in the weekend. Only for the last 24 hours, the cryptocurrency has jumped by 2.36%. The ETH/USD pair was traded at $ 124.36 until I am writing my analysis. One of the reasons for the price increase may be are outflows from Bitcoin, whose funds have flowing into altcoins in combination with ETH.

Ethereum: So close and yet so far from shining again

Still, Ethereum is in a consolidation phase, although development is different from what we saw in Bitcoin. Consolidation price action continued as a whole in the crypto market on Tuesday. After the recent rally on the cryptocurrency market, investors are waiting for a strong move in the hope that the market will see further upside momentum over the news. And this is one of the main reasons prices still see a sharp decline.

The next big event, which is so long-awaited on the market, maybe will be the news of the SEC’s approval of the Bitcoin ETF. Or the approval of the parent company NYSE, supporting Bitcoin futures. If this happens, they will most likely be available for trading on the Bakkt platform and will bring the next big wave of bullish price action, perhaps acting as a magnet for attracting fund managers and investors with huge portfolios. In such a case, the much-needed long-term flow of funds and fundamental support can be provided on the market.

Above the current price, the first resistance is seen at $ 130 (the upper limit of the current range), followed by the psychological and round level of $ 140. If the price succeeds to make a clear break and daily closure above those levels, then the next bull’s target should be at $ 149.15 (high on January 10).

On the other hand, however, it is clear that the current market is set to experience a serious downside move, which is likely to occur sooner rather than later. News hit the market that Ethereum developers downloaded preponed data and block numbers for the Constantinople network from 27th February to 25th February. As the deadline approaches, it is unlikely that the market will provide significant updates and headlines before.

That’s why I think investors are becoming more cautious about the impact of the upgrade on the history of Ethereum’s network. It is possible for investors to start collecting their profits. And this will most likely leave the price very close to the annual bottoms. Retailers (who make up the majority of currency market traders) are expected to flock away and not return until another such rally appears.

On the downside, the nearest support is $ 120 – 119.43 (round level and the law on Monday). A clear broke below this area should trigger further bearish momentum to $ 115.60, where the EMA50 is located. Perhaps it will be difficult for ETH/USD to break through this level quickly, but if it does, nothing should stop the bears from testing the doji on February 7 at 104.02.

On the 4-hour chart, the MACD indicator points down, but with a barely noticeable inclination, so the bullish momentum should not be turned off. However, if the goal of the averages is to reach the zero level of the indicator, the trajectory can take many days if it does not accelerate by a decline in consolidation.

 

 

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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