- ETH/USD sits marginally above $200 after a strong collapse.
- The downside is the path of least resistance.
Ethereum, the second largest coin by market value, hit the lowest level since September 18 at $195 amid global cryptocurrency plunge that wiped out over $15B of market’s value. ETH/USD is changing hands at $201.57, down nearly 10% in recent 24 hours. Ethereum’s current market value is $21.1B, while the average daily trading volume is registered at $1.7B.
What’s going on
Ethereum has been following the global cryptocurrency trend as there are no ETH-specific triggers that might have caused the decline. A combination of speculative and technical factors amid a flow of negative reports and concerns voiced by IMF and World Bank earlier this week might have spoiled the market sentimentsб turning the balance to the bearish side.
Ethereum’s technical picture
ETH/USD needs to return above $220 handle to get a chance for an extended recovery towards $227 with a host of strong technical indicators clustered on approach, including 61.8% Fibo retracement daily, 4-hour high, SMA10 daily and SMA10 4-hour.
On the downside, a sustainable movement below $200 will open up the way towards Asian low of $195.00 with very little in terms of supports below that level. Basically, the downside is considered as the way of least resistance now.
ETH/USD, 1-hour chart
Ethereum Mining Pool Receives Mysterious $300K Blockchain Payout
Ethereum mining pool Sparkpool received a payout of over 2,000 ETH (worth $300,000) just for mining one block on the ethereum blockchain Tuesday – a figure that’s about 600 times the network’s standard block reward.
Miners who secure blocks are programmed to be awarded 3 ETH (about $500) for every new transaction block added to the ethereum blockchain. On top of this, there is also a small payout attached to transactions incentivizing miners to validate and include new transactions into a mined block.
Yet, with only 210 validated transactions, Sparkpool received 2,103.1485 ETH at block number 7,238,290, according to data from ethereum block explorer Blockscout.
As highlighted on Twitter by Jimmy Zhong – co-founder of decentralized application platform IOST – the strange activity could be seen as a random fluke, with one ethereum user (or perhaps multiple) accidentally attaching abnormally high transaction fees to their payments.
Alternatively, it could be seen as a sign of goodwill from an anonymous supporter of the ethereum mining community, which in recent days has been divided over a contentious proposal to change which type of mining chips can be employed by miners seeking to compete for rewards.
Others suggested it could be a less altruistic attempt to “wash” money through the ethereum blockchain, obfuscating that it might have been illegitimately acquired.
But if past crypto history is any indicator, the likelihood of an innocent human error is not as outlandish as one might assume. Back in July 2014, one bitcoin user attached 30 bitcoins worth of transaction fees to a 38 bitcoin transaction due to an accidental error in typing, an error that despite enhancements in UX, is not altogether uncommon in the industry at large.
Ethereum [ETH/USD] Price Analysis: Bull continues to grace the market with its presence
The cryptocurrency market is seen continuing its bull rally, with all the coins in the market in the green. Ethereum [ETH] has emerged as one of the biggest gainers over the bull run.
According to CoinMarketCap, at press time, Ethereum was trading at $148.06 with a market cap of $15.53 billion. The coin has a trading volume of $5.51 billion and has witnessed a surge of 22.50% in the past seven days.
In the one-hour chart, the cryptocurrency records uptrends from $122.81 to $148.60, and from $135.34 to $144.68. The immediate resistance for the coin is set at $148.64 and strong resistance can be found at $152.54. On the other hand, the support levels can be spotted at $141.11 and $119.37.
Chaikin Money Flow continues to support the coin’s bullish run as the money is seen flowing into the market.
MACD however, is forecasting a bearish weather as the moving average line is pictured well-below the signal line. Additionally, the histogram is also covered in the colour red.
Bollinger Bands have started to indicate a less volatile market as the bands are pictured contracting.
The one-day chart pictures a downtrend from $499.01 to $144.62. On the other hand, the uptrends are recorded from $82.82 to $103.22 and $103.22 to $120.42. The coin has its immediate resistance level at $155.99, after which the strong resistance is at $219.04. The coin’s immediate support is seen at $103.17 and there is strong support at $82.72.
Klinger Oscillator has joined the bandwagon and is pictured celebrating the return of the bull as the reading line turned north after its crossover with the signal line.
Parabolic SAR is also seen rejoicing as the dots have aligned below the candlesticks, acting as a support system against the bear.
RSI shows that the cryptocurrency is currently overbought in the market as the buying pressure is more than the selling pressure.
The coin continues to indicate a bright future and the bear’s influence over the market is seen falling as the day passes. This is mainly because the bull is supported by Klinger Oscillator, and Parabolic SAR from the one-day chart, and Chaikin Money Flow from the one-hour chart.
ETH/USD bulls face resistance at $147.50 – Confluence Detector
- ETH/USD bulls need to breach past resistance at $147.50 to continue upward momentum.
- If the $147.50 resistance gets breached, then there is considerable scope for growth.
ETH/USD price went up from $135 to $146 this Monday as bulls took over the market. Currently, they are facing stiff resistance at $147.50 which they need to breach to continue their upward momentum. If that resistance is broken, then ETH/USD has considerable scope for growth before meeting its next resistance at $164.
ETH/USD Daily Confluence Detector
ETH/USD daily confluence detector faces two stiff resistance levels at $147.50 and $164. The confluences at those levels are:
- $147.50: Monthly pivot point, 15-min previous high, and hourly previous high.
- $164: Previous month high.
The market has three strong support levels at $141, $133, and $128. The confluences at those levels are:
- $141: 5-day simple moving average (SMA 5) and monthly 61.8% Fibonacci retracement level
- $133: SMA 10, daily 23.6% Fibonacci retracement level, daily Bollinger band upper curve, and weekly pivot point R2.
- $128: 4-hour Bollinger band middle curve, daily 61.8% Fibonacci retracement level, previous week high, SMA 100, and weekly pivot point resistance 1.