- Ethereum atraded at $13 for a couple of seconds.
- ETH/USD is poised for more losses.
ETH/USD is changing hands at $85.18, down 16% in recent 24 hours. However, there was something flimsy happening with the third largest coin on Thursday eve. ETH/USDC briefly dropped to $13 on Coinbase Pro market, causing panic among the exchange customers. Traders took the matter to social media sharing the pictures with abnormal price movements, most likely triggered by algo-trading bots. Coinbase issued a refund for investors who incurred losses due to the flash crash.
“We’re aware of price movement on one of our order books that happened over the course of regular trading activity. Over the past 24 hours, all Coinbase platforms have operated as planned and no system-wide incidents have been identified,” the company wrote on Twitter.
Ethereum’s technical picture
Currently, ETH/USD is changing hands at $84.60, off the early Asian low touched at $82.15. A sustainable break below $100 handle sends an ominous signal to the market and brings $50 into focus. While the coin is oversold both on a weekly and a daily timeframe, there are no signs of reversal as of yet. Daily RSI (Relative Strength Index) points downward, while the recovery is capped by DMA5 at $99.00.
The coin is one of the biggest losers among top-20 cryptocurrencies: ETH/USD peaked at $1,1421 on January 13 and lost 94% of its value since that time.
ETH/USD, the daily chart
Ethereum [ETH] and Tron [TRX] Price Analysis: ETH and TRX witness steady growth
After the recent pullback of Bitcoin, the market was forced to fall drastically, Ethereum saw a steady recovery post the fall. Ethereum ranked number 2 overall and was priced at $259.12, with a market cap of $27.5 billion. The 24-hour trade volume came up to $23.62 billion out of which, BitMEX contributed 13.94% via XBT/USD. ETH saw a price surge of 9.85% in the last 24 hours, at press time.
Tron, ranked eleventh overall was priced at $0.0294, with a market cap of $1.96 billion. The 24-hour trade volume came up to $683 million, out of which, BW.com contributed 8.09% via the TRX/USDT pair. A price surge of 9.64% was seen by TRX in the last 24 hours.
1-Day – ETH
The Chaikin Money Flow indicated that the inflow of capital into the ETH market was more that the outflow.
The MACD indicator showed a bullish crossover.
The Relative Strength Index put the coin in the overbought zone.
1-Day – TRX
The Parabolic SAR indicated a bullish trend as the dotted markers were under the candles.
The Bollinger Bands indicated volatility in price as the band expanded.
The Relative Strength Index indicated a bullish trend as the graph was closer to the overbought zone.
Ethereum Is Popular, but It’s Probably Not Perfect
Ethereum has always been well known for its smart contracts and technical capabilities, and that reputation is spreading to some of the biggest retailers and financial companies out there.
A Network That’s Known for a Lot
Among the new companies that are building or have built business platforms across the Ethereum Network include JPMorgan, Amazon and Microsoft Azure. JPMorgan, for example, used the Ethereum Network to build its digital USD, which ultimately came to be known as JPM Coin. It was a strange sight in many ways, considering the CEO and Chairman of JPMorgan Chase Jamie Dimon had repeatedly let the public know of his distaste for crypto in the past.
Dimon had often referred to bitcoin as a “fraud” that was “worse than tulip bulbs.”
JPMorgan says that it wants customers to have the opportunity to tokenize fiat “instantly and confidentially.” JPM Coin is also allegedly a stable currency, meaning it’s tied to USD and thereby less prone to the volatility one often witnesses with bitcoin and other mainstream forms of crypto. JPMorgan has also stated that it is looking to expand its blockchain division through the end of the year.
In the case of Amazon Web Services (AWS), the company has used the Ethereum platform to develop a new “open-blockchain standard” by adding it as an “option for its Amazon Managed Blockchain.” While ether tokens cannot be used to pay for items or services through Amazon, a new system supporting Ethereum is expected to be released sometime during the summer months.
Amazon’s goals are to give several companies an opportunity to add blockchain technology to their platforms without developing the technology themselves. Amazon also seeks to support millions of transactions at once through the new network.
Microsoft Azure is also built atop the Ethereum platform. Azure allows companies to keep all their technical tools in one place, relatively similar with Office Suite. However, Microsoft has also expressed an interest in developing further Ethereum-based tools and items for customers to use in the cloud, meaning a lot of companies will have the chance to expand their global business operations.
Despite its popularity, Ethereum seems to have one major drawback. Many of the companies or individuals that utilize the Ethereum Network have not bothered to patch up specific security problems, which means that the network is potentially vulnerable to a 51 percent attack.
This Needs to Be Fixed!
Karsten Nohl, a researcher with the cybersecurity firm SRLabs explained in a statement:
According to our collected data, only two-thirds of nodes have been patched so far… One month after this alert, we used data from Ethernodes.org to assess the security of the Ethereum node landscape and found that around 40 percent of all scanned parity Ethereum nodes… remained unpatched, and thus are vulnerable to the mentioned attack.
Poll reveals traders would rather long Ethereum than Ripple
A Twitter poll conducted by cryptocurrency trader Blues has shown that traders would rather go long on Ethereum than Ripple.
The results are interesting, considering XRP has become one of the top performing assets in the top 10, giving projects like Ethereum and Stellar Lumens a run for their money. The recent decision to allow XRP trading on Coinbase Pro in the state of New York was a major milestone for XRP. Yet traders still favor Ethereum.
Blue’s tweet read “If we were to enter an altcoin season, which coin would you long/buy first?”
— Blues (@BluesCrypto) May 17, 2019
Of the 3,310 votes the poll received, 40% chose Ethereum while XRP came in at second with 33% of the votes. Bitcoin Cash, however, only received 4% while other took the remaining 23%.
Ethereum is currently working towards upgrading and mitigating from the current centralized and energy inefficient proof-of-work consensus algorithm to a proof-of-stake model. At the same time, developers are dealing with scalability, of which there are several potential solutions, including Casper.
While the US Securities and Exchange Commission has come out several times confirming Etherum isn’t considered a security, the agency hasn’t afforded XRP the same clarity. Even though Ripple has stated it doesn’t control XRP, it hasn’t changed the minds of the SEC, presenting a major hurdle to the adoption of the company’s xRapid solution.