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Ethereum Price Analysis: ETH/USD Delicate at $100, Price may Drop to $1 or Snap Back to $250

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There are three main pieces of infrastructure that supports the Ethereum Ecosystem: Truffle, Infura and MetaMask. Truffle is a “A world class development environment, testing framework and asset pipeline for blockchains using the Ethereum Virtual Machine (EVM), aiming to make life as a developer easier” while Infura is an “API and developer tools providing the necessary infrastructure and scaling capabilities for dApps”.

On the other hand, MetaMask is an Ether and ERC-20 wallet that runs on Infura. Aside from securing your coins private keys, it also acts a bridge for dApp exploration right off your browser. It also allows users to run dApps without the need of downloading the whole Ethereum full node.

Now, the exponential growth—and underlying demand is the main reason why Joseph Lubin is convinced that Blockchain is more than a market but a movement. Infura alone has had more than 10 billion API request. MetaMask has more than 10 million downloads and Truffle–which is used by ShapeShift, Aragon and others—and MetaMask has one million downloads.

That’s not all, other metrics that show increasing base activity despite free falling ETH prices includes the number of active ETH addresses—exceeding 48 million. At the same time governments are positive on the chain with Austria via Oesterreichische Kontrollbank (OeKB) issuing $1.35 billion worth of federal bonds back in September.

ETH/USD Price Analysis

ETH/USD Price Analysis

There are hints of support but at $12 away from $100, we are far from convinced that there is a shift of momentum and bulls are back in contention. At spot prices, ETH/USD is up 2.4 percent in the last week and down two percent from yesterday’s close.

Still, ETH/USD is trending in shaky grounds and how prices react at $100 could be shaping for ETH in the short to medium term. Ideally, we would like to see rallies above $130 after a 92 percent drop from 2018 peaks.

Trend: Bearish

Of course, after 11 months of steady declines that have seen ETH prices drop more than 90 percent from Jan peaks, the path of least resistance is southwards. This means ETH/USD is bearish and from the chart volatility is low but nonetheless, prices are trending within a bear breakout pattern following steep declines of Nov 19.

Volumes: Stable but Bearish

Notably, in our daily chart is Nov 25 bull pin bar. While it did print as a bull in an otherwise steep decline shoring prices and preventing a devastating crash below $100, the bar was backed by above average volumes—1.179 million versus 620k. And even after that ETH/USD prices are still oscillating within Nov 25 high low.

Candlestick Formation: Accumulation/Distribution, Bear Breakout Pattern

Because of Nov 19 high-volume, bear bar breaking below $160—the lower limit of support line, ETH/USD is trading within a bear breakout pattern. Now, because of the past seven days stability, ETH could either be in a distribution or accumulation phase depending on breakout direction. Rallies above $130 could be the latter while discouraging drops below $100 shall be a distribution and bear trend continuation.

Conclusion

Trading ETH/USD is simple. Bears are in charge. But, convincing breaks above $130 at the back of strong volumes shall usher in the next wave of bull pressure aiming at $160, $250 and even $400. If not and there is distribution further exerting pressure on ETH leading to price collapse below $100, then we could see drops re-testing $40 by end year.

All Charts courtesy of Trading View.

This is not Investment Advice. Do your Own Research.

The post Ethereum Price Analysis: ETH/USD Delicate at $100, Price may Drop to $1 or Snap Back to $250 appeared first on Ethereum World News.

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Ethereum (ETC) Price Analysis: Bears Win Consolidation Battle

Ethereum previously consolidated inside a symmetrical triangle pattern to pause from its selloff but eventually broke to the downside to signal that further losses are likely. The 100 SMA is also making a bearish crossover to indicate that selling pressure is about to pick up.

However, RSI is pulling out of the oversold region to signal a quick return in bullish pressure. This might lead to a retest of the broken triangle bottom around the 115.00 area before more bearish action is seen. This broken support lines up with the moving averages dynamic inflection points to add to its strength as a ceiling.

Stochastic is also pulling out of the oversold region to signal that sellers need to take a break and allow buyers to take over. If buying pressure persists, ethereum could still find its way back inside the triangle or even resume the rebound.

However, sentiment in the cryptocurrency industry is not looking all that positive as the recent wave is leading more traders to join in the FUD. All that coverage on the recent price declines by mainstream media has also contributed to selling pressure as more and more folks unwind their holdings.

Last week, there was a brief improvement in sentiment as the focus returned to institutional investments. Still, it looks like buyers needed more than just mere expectations to sustain gains and would rather see actual industry developments.

It also doesn’t help that SEC Chairperson Clayton said that the lack of consumer protection measures in the crypto market suggests that they won’t be approving bitcoin ETFs anytime soon. This puts the industry a step back as it means that the likes of ethereum and its peers would have to wait much longer as well. Besides, ethereum is also under additional downside pressure as it was overtaken by Ripple and might also face stiff competition from rival altcoins.

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Analysts: Bitcoin (BTC) To Hit $144,000 In 10 Years, Ethereum To Lose Steam

The value of Bitcoin will be the main talk in a decade to come. That’s according to a report by Satis Group. Satis Group is an advisory firm offering services in ICOs and cryptocurrencies. According to this firm, Bitcoin is headed for a major decade-long price upsurge despite the recent setbacks by market corrections.

Bitcoin, Monero, And Dash To Gain Exponential Boom

The report, titled “Cryptoasset Market Coverage: Valuation,” indicates that Bitcoin price is expected to approach $33,000 in 2019 – a cool 400% upscale from the current $7,000 range. At that $33,000 price range, Bitcoin will have surpassed its December 2017 all-time high of $20,000. With that trend, the crypto asset will have achieved about $72,000 in value within the next 3 years.

If this bullish trend holds for 5 years, the coin will be valued at upwards of $96,000 by end of it. The analysts project that by 2028 (That’s 10 years from 2018), Bitcoin’s value could be standing at a mind-blowing $144,000.

Besides Bitcoin’s major bullish run, the analysts also project a huge boost for Monero (XMR). The report indicates that Monero could rise by over 38,000% between now and 2028, meaning that the crypto will have shot from its current stand at $103 to a whooping $39,584 by the end of the 10-year period. The same analysts also put Dash (DASH) on the list of the digital assets predicted to gain value. Currently trading at $188, Dash is seen to rise by 1,459% to achieve $2,927 in value by 2028.

Ethereum On The Losing List

However, the same report by Satis suggests that some other crypto assets like Bitcoin Cash (BCH) won’t be winning in the future. BCH is currently trading at $558, but Satis projects that this momentum will blow out and the cryptocurrency will have dropped down to $180 within the next 10 years. Ripple(XRP), too, won’t be having any smooth rides. According to Satis, the next 10 years will see Ripple dip to $0.004 from the current $0.3 value.

In the case of Ethereum, Satis explains that application-specific blockchain networks don’t hold much value in their present form. In that case, Ethereum (ETH) and EOS (EOS) will likely see a decline as they face hurdles brought about by issues with user interfaces and government regulations. However, since cryptos like Monero, Bitcoin, and Decred are basically crypto assets in a largely viral market, there value is bound to increase by huge margins.

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Ethereum (ETH) Price Analysis: Still Stuck in Consolidation

Ethereum is still inside a symmetrical triangle formation as it formed another lower high when it bounced from the $300 resistance. Price now seems to be aiming for the bottom of the triangle around $280 and the moving averages.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that support is more likely to hold than to break, possibly leading to yet another move to the top.

However, RSI is heading lower so ethereum might follow suit while sellers have the upper hand. Stochastic is also pointing down to reflect the presence of selling pressure. If bears are strong enough, they could push for a break of support and a downtrend that’s the same size as the triangle.

But when both oscillators reach oversold conditions and turn back up by then, buying pressure could return and lead to another test or even a break past the top.

The recent tweet by Elon Musk on how he wants ethereum “even if it’s a scam” is being blamed for the drop in price, although it’s tough to pinpoint which exact catalyst allowed price to turn from $300. After all, it could simply be profit-taking once more at the key psychological mark and a confirmation of a short-term double top right there.

In more upbeat reports, ethereum has been integrated by Yahoo Finance into its platform for trading. Some say that this marks an important step in crypto adoption, especially for retail investors, but others think that this could increase downside pressure.

In the meantime cryptocurrencies could also wait for clues on market sentiment when it comes to establishing longer-term direction. Risk appetite on account of trade developments is currently supporting stocks and commodities, possibly weighing on demand for ethereum and its peers.

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Ethereum (ETH) Price Analysis: Triangle Breakout Alert!

Ethereum broke below the bottom of its symmetrical triangle consolidation on the 1-hour chart to signal that bearish moves are in the cards. Price might be due for a pullback to the broken support, which is close to a new descending trend line forming.

Applying the Fibonacci retracement tool on the latest swing high and low shows that the 61.8% level lines up with the trend line and area of interest near $290. This might be the line in the sand for a pullback on this selloff, as a move beyond the $300 mark could signal that bulls are charging again.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, there’s still a chance for the uptrend to continue. At the same time, RSI is indicating oversold conditions and turning higher could bring buyers back in. Stochastic has reached oversold territory to reflect exhaustion among sellers and a possible takeover by bulls.

In that case, the correction could go on for a while, and the Fib levels might be where sellers are waiting. The 38.2% level is at $282.07 and the 50% level is at $286.32.

Cryptocurrencies are in the red once more as the pickup in stocks and commodities seems to have drawn traders back to traditional markets. This improvement in sentiment in global financial markets is being attributed to the upcoming trade talks between the US and China this week, with many hoping that the next set of tariffs could be avoided.

It’s important to note, however, that these will just be low-level talks and there won’t likely be any decisions made for now. This could lead to a return in risk aversion that tends to prop up cryptocurrencies.

Another factor worth watching is the turmoil in Turkey as escalation could bring in capital controls that tend to favor bitcoin as well.

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Ethereum (ETH) Price Analysis: On the Lookout for a Breakout

Ethereum is consolidating in a symmetrical triangle and might be to break out soon.

After the strong moves in the previous month, Ethereum is now consolidating inside a symmetrical triangle pattern as bulls and bears wait for catalysts. Price is approaching the peak of the formation so a breakout might be due soon.

The 100 SMA is above the longer-term 200 SMA to hint that the path of least resistance is to the upside. In other words, an upside break might be more likely to happen than a downside break. The chart pattern is around $80 tall so the resulting move could be of the same size.

RSI appears to be slowly making its way down, indicating that sellers have the upper hand. This could lead to a break below the $290 triangle bottom, which is also around the 200 SMA dynamic inflection point. Stochastic was on its way up to show the presence of buying pressure but seems to be turning down also.

Ethereum has been struggling to hold its ground since breaking below the $300 key psychological level. Buyers would need to be strong enough to push price past this level to draw more bullish energy and sustain any rallies.

The recent drop is being pinned on the cashing of ICOs as most tokens chalk up consecutive declines. And since ERC-20 tokens were mostly used for the creation of ICOs for funding purposes, the profit-taking activity has consequently led to selling of Ethereum.

A pickup in cryptocurrency prices could then be needed to restore demand for Ethereum, as well as improvement in risk taking. Traders are keeping tabs on Turkey and potential contagion, as this might also lift demand for alternative assets like digital currencies. This has been the case when capital controls were imposed on Greece a few years back as people looked for a better store of value or medium of exchange than a rapidly dropping currency.

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Ethereum Co-Founder: Sinking Price of Crypto Will Not Hurt Growth

Ethereum (ETH)–Joseph Lubin, one of the co-founders to the second largest cryptocurrency by market capitalization Ethereum and current CEO of ConsenSys Inc., told Bloomberg in an interview published yesterday that he is not concerned with the sinking price of cryptocurrency or the overall impact it will have upon the growth of the industry.

While investors across the world reel from double-digit losses to extend an already taxing market in 2018, Lubin is confident that the industry will continue it’s march of adoption and growth that has characterized 2018 despite the otherwise bearish atmosphere. In particular, Lubin cites last December’s massive bull run, which bled over into the early weeks of 2018, as being bubble-like developments that are similar to price increases in the past. As Lubin points out, the past occurrence of BTC and cryptocurrency in general spiking in price, followed by a crash (hence creating multiple bubbles over time) is just par for the course, and each time getting slightly worse. While the bubble makes for a terrible experience to investors having to survive the bear market, it doesn’t indicate that the industry is failing in terms of development or adoptive achievement. Lubin claims there have been,

“six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening.”

Despite being all consuming during the bubble, looking back on the ebb and flow of the market reveals a more steady movement in price, which Lubin refers to as ‘pimples’ on the chart. He also finds, in some small part, the severity of the crash to be indicative of the industry’s growth. The most recent crash has been that much more severe due to the fact that cryptocurrency is spreading, ICOs are on the rise, more projects are being developed with intriguing concepts compelling investors to pour money into,

“…we build more fundamental infrastructure, we see a correction, and the potential gets even more impressive… I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem and the growth of development in the ecosystem. We are probably two orders of magnitude bigger as a developer community than we were eight or 10 months ago.”  

Lubin, like other leading authorities in the industry of cryptocurrency, blames part of the crash and price volatility on the large number of speculative investors swaying the market, creating unhealthy conditions and myopic goals. Lubin, who helped co-found Ethereum alongside the outspoken Vitalik Buterin, has put his primary focus on growing the cryptocurrency industry in terms of utility and building greater adoption rather than through a price-focused discourse. Having the market dominated by speculative-driven investors is not a proper indicator of how the actual industry and underlying technology is performing,

“So we can look at the price and make growth plans and projections, and we’re still on track, basically. So this is not unexpected.”

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Ethereum (ETH) Price Analysis: Bears Still in Control?

Ethereum has formed lower highs and lower lows to trade inside a descending channel on its 1-hour time frame. Price found support at the bottom and looks ready to test resistance again.

Applying the Fibonacci retracement tool shows that the 61.8% level lines up with the channel top around $300. This is also just below the 100 SMA dynamic inflection point, which might also keep gains in check. If so, Ethereum could fall back to the swing low at $250 next.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. The gap between the moving averages is also widening to reflect stronger selling pressure.

RSI is on the move up but nearing overbought territory to indicate that buyers are in control but could lose momentum soon. Stochastic is also dipping into overbought territory to reflect exhaustion among bulls. Turning lower could bring sellers back in, even before price hits the top of the channel.

Ethereum broke below a key support zone, likely drawing even more selling pressure as investors rush to liquidate positions even before finding out what’s driving the move. There appear to be no catalysts for the sudden drop, at least based on the headlines, but mostly sentiment-based trading.

Traders have a weaker appetite for riskier assets these days on account of the crisis in Turkey that is feared to spark contagion to European banks and the global economy. However, cryptocurrencies have shown a tendency to do well when these situations persist, especially once investors start moving funds out of traditional markets that are more susceptible to a financial crisis.

If this phenomenon takes over, Ethereum could have a shot at busting out of the channel and starting a reversal. It would help, though, if this was also supported by positive developments in the industry itself.

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ICOs Being Blamed for Ethereum (ETH) Sinking Price

Ethereum (ETH)–After a 16 percent decline in value over 24 hours, the price of Ethereum sunk to its lowest point in nearly a year. Trading a $265 as of writing, the second largest cryptocurrency by market capitalization has completely retraced the gains made following the beginning of the year’s massive bull run. While some have pointed to the overall state of the cryptomarkets as being bloated and unhealthy, with altcoins across the board experiencing double digit losses on the week, the head of crypto hedge fund BloomWater Capital is placing the blame on ICOs cashing out.

As Bloomberg points out, the massive number of ICOs being built on the Ethereum blockchain was the primary catalyst for Ether’s price gain throughout last year, in addition to the significant amount of development interest it generated. Now, the very same usability is leading to price decline that is outpacing Bitcoin, as investors who were previously purchasing ETH to participate in Initial Coin Offerings (ICOs) are staying out of the market.

Considering that the majority of ICOs to come out in the past year have been built as ERC-20 tokens, it has made sense for investors to buy in with existing Ether coins. In addition, Ethereum has lower mining fees and faster average transaction times than Bitcoin, while still being a highly recognized coin. While previous reports have seen the ICO market double in volume through the first half of the year over 2017, existing ICOs are cashing out in massive volumes to cover the costs of the sinking crypto market. The result is a forced selling of Ether, driving the price of ETH down ahead of other top of the market coins like BTC.

Biswas Das, director of BloomWater Capital, blames the amateurish development filling the ICO space, which has far less regulation than typical startups and overall lower barrier to entry–both contributing to headaches for investors and would-be project speculators,

“These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year but right now the the market is so fragile that it causes a lot of pressure.”

As Das puts it, the fragility of the current market is unable to withstand the forced selling and downward pressure of ICOs cashing out to cover costs, causing Ethereum to drop to price levels not seen since the middle of last year. Bloomberg also points out growing concerns over the ability of Ethereum’s network to handle transactionary volume in addition to the ICO’s being built on the platform. The end result has been other platform-focused cryptocurrencies springing up in the interim, such as Cardano’s ADA and TRON’s TRX, to fill the void in investor skepticism over Ethereum being capable of handling the development volume.

Bloomberg also quotes Spencer Bogart of Blockchain Capital LLC, saying that general disillusionment in ICOs, in conjunction with growing stories of scams and outright profiteering has caused some backlash towards the platform that hosts the ERC-20 based tokens,

“Investors are increasingly disillusioned with tokens and ICOs, most of which have been launched on top of Ethereum and we’re seeing this play out in the market with continued downward price pressure.”

ICOs have managed to thrive despite the bearish market of 2018, however not without controversy. A study published earlier in the year found that 80 percent of ICOs could be classified as ‘scams.’

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Ethereum (ETH) Price Analysis: Bulls Slowly Gaining Traction

Ethereum bulls appear to be defending the near-term support and may resume the climb.

Ethereum has formed higher lows and higher highs to trade inside an ascending channel on its 1-hour chart. Price has pulled back from the recent rallies to test support and appears to be encountering some bullish energy.

If the channel bottom continues to hold, Ethereum could be able to bounce back to the upside targets marked by the Fib extension levels. The 38.2% extension is in line with the mid-channel area of interest at $475 and the 50% extension is slightly above it at $480. The 61.8% extension lines up with the swing high around $485 and the 78.6% extension is around the channel top at $490. The full extension is at the $500 major psychological level.

RSI is already indicating oversold conditions or that sellers are feeling exhausted and ready to let bulls take over. Similarly, stochastic has reached the oversold region and looks ready to turn higher, so Ethereum might follow suit.

Cryptocurrencies have had a good run for the first half of the week as the positive sentiment from the previous one has carried on. However, profit-taking came into play on a number of factors, including the SEC decision on the bitcoin ETF and the expiry of CME bitcoin futures that may have spurred pullbacks in the industry.

Besides, the dollar has been able to flex some muscle on positive expectations for the advance Q2 GDP release this week. Trump hinted that it could come in at 4.8% which would be more than twice the previous reading and still significantly higher than market expectations.

Traders have also turned some attention back to traditional markets like stocks and commodities as strong gains were posted on news of the trade truce between the EU and the US. Cryptocurrency investors might now hold out for another set of catalysts to see if the rallies can be sustained.

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