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Ethereum (ETH) Price Loses Its Gains by 7% while Dropping Back to $139

The market has been euphoric with greens with Ethereum yet again leading the market with over 11 percent gains. The 2nd largest cryptocurrency by market cap of $17.3 billion that has been changing hands at $164.96 with 24-hours gains of 11.63 percent lost 7 percent and went back to $139 in a matter of few hours. In the BTC market, it is down by 1.94 percent, as per the data provided by Coinmarketcap.

Ethereum Price chart, Source, Coinmarketcap

This time, the daily trading volume has taken a bigger spike than the last time as at press time it has been at $5.7 billion in comparison to last weekend’s $4.2 billion. Given the surge in price until a few hours back as well as the trading volume, the next week could have been seen bringing new greens. However, the red has made the entry.

Without reds, the next target has been $170, with $200 seems like the real possibility here as well. When Ethereum price first surged, it has been expected that $170 will be soon coming in as crypto trader, Moon Overlord had said at that time,

“$170 feels like a magnet to me.”

With Ethereum already crossing $160, the real fun has been expected to start now.

“First target here at $163 reached, watching this level closely for what type of reaction we have. Ideally would like to buy any dip from here targeting $190-200.”

With Ethereum Constantinople hard fork coming this week on Thursday, Ethereum could be seeing the green. However, as we reported earlier, fundamentally this upgrade is not a bullish event rather a bearish one given the fact that without this upgrade, the supply issuance of Ether would have been less than what would be after this hard fork but the narrative currently is bullish and that matters.

However, as crypto trader Squeeze has called out for a short, the dip came as other analysts have also been calling out for but only once Constantinople passes through.

In the current red market bitcoin is also seeing a dump but like any other bear market, altcoins are seeing an even more crash. Though the market is bearish right now, it would be interesting to see if Ethereum breaks the $150 level again to reach $200 and if will further register more gain or will pop and fizzle once we make through the next week.

Where do you think Ethereum will go from here? All the way to new lows from here or another rise is sure to come? Let us know what you think!

Source.bitcoinexchangeguide

Ethereum

Is Ethereum Really Centralized? Litecoin Founder, Charlie Lee, Slams Ether DeFi Growth

  • Litecoin founder slams Ethereum for being too centralized
  • Ethereum faced a major hack recently
  • LTC founder also criticized the way the breach was handled

Ethereum news today – Today, Litecoin is the news again for notorious reasons. The network’s founder and chief has openly spoken against a competitor, Ethereum, following the catastrophic DeFi breech. Keep in mind that Ethereum’s DeFi smart contract was compromised not too long ago. Following this recent compromise, Charlie Lee of Litecoin has openly attacked the DeFi sector of being overly centralized. He said that the centralization of the system is why it the network was breached. The Litecoin founder also described the DeFi (decentralized finance industry) growing fastest on the Ethereum Blockchain as “decentralization theater”.

Lee: Is DeFi Decentralized if it Can be Shut off?

Recently one app that succumbed to a security breach is called Fulcrum. After the compromise, the developers at Fulcrum froze the affected smart contract. LTC’s Lee has criticized the rapidly expanding decentralized financial app sector for being more centralized. He called the industry a “decentralization theater” when responding.

In the past weekend, one attacker managed to breach the Ethereum-based margin trading app known as Fulcrum. Although the report was not officially disclosed, there are people in the ecosystem who believe that much as $350,000 worth of ETH was stolen by Cybercriminals. As issued in a tweet, the developers from bZx have disabled the bulk of elements that detail how the smart contract was impacted by the heist. The team hasn’t been able to deliver any official report about the issue, but claim the remaining funds on the platform is safe.

DeFi is a Growing Network of Decentralized Financial Apps

Largely based on the Ethereum Blockchain, DeFi stands for the expanding network of decentralized financial apps. Decentralized financial applications offer a broad range of services including services found in the traditional markets. DeFi’s are Built on public Blockchains. Applications like Synthetix or MakerDAO are design to promote better financial inclusion in the space. Litecoin founder, Charlie Lee was reportedly among the dissenting voices over the latest happening in Ethereum. He was openly critical of the way the network handled its recent security breach. He went on to call DeFi names like the worst of both worlds. Lee attacked the perceived lack of decentralization when it comes to DeFi apps.

According to the LTC chief, if a developer can easily terminate an aspect of an app, then it is not a decentralized solution at all. Despite the fact that decentralized financial apps were made to be leaderless models, some developers were trusted with the powerful kill switches within the system. However, during the hack, these so called leaders were powerless.

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DeFi Project bZx Exploited for Second Time in a Week, Loses $630K in Ether

Bad actors have made off with $630,000-worth of the ether (ETH) cryptocurrency after exploiting a price feed of the ethereum-based lending project bZx.

The attack – the second in less than a week – began at just after 03:00 UTC Tuesday, when attackers apparently took out a flash loan of 7,500 ETH (approximately US$1.98 million), using 3,518 ETH (~$939,300) to purchase synthetic USD stablecoin sUSD from the issuer, which they then posted as collateral for a bZx loan, according to an analyst on Twitter.

They then used 900 ETH (~$240,000) to bid up the value of sUSD through an integrated price feed from liquidity provider Kyber Network until the dollar stablecoin spiked at $2. Using this inflated collateral, they took out another loan of 6,796 ETH (roughly $1.8 million) that was used to pay back the original 7,500 ETH loan, pocketing the remaining 2,378 ETH.

The total amount stolen is worth approximately $633,000, according to CoinDesk’s Ether Price Index. In its entirety, the attack took just over a minute from beginning to end. The exploiters have left an open loan with half the required collateral now that sUSD has returned to its dollar pegging.

The total amount of ether locked in bZx lending contracts has nearly halved from 40,000 ETH (~$10.7 million) to 23,000 ETH (~$6.1 million) since the exploit took place, according to statistics site DeFi Pulse.

Source: DeFi Pulse

The official Twitter account for bZx confirmed at 04:38 UTC the project had suspended trading after it detected “suspicious transactions using flash loans and trading on Synthetix.” A bZx spokesperson confirmed on the group’s Telegram channel the company itself, rather than any of the platform’s users, would cover the shortfall.

The attack comes days after bZx fell victim to a similar flash loan-based attack where more than $350,000-worth of cryptocurrencies were extracted from the platform. It’s unclear whether the two attacks were carried out by the same person or group.

What are flash loans?

The vast majority of DeFi lending facilities rely on overcollateralized loans: Borrowers can usually only borrow around 75 percent of the value of their collateral. Although that incentivizes users to pay back loans, it also requires lenders to have very high liquidity – sometimes in a diverse range of assets – in order to quickly liquidate loans.

Flash loans are instruments that allow traders to liquidate the loans on the lender’s behalf. It works by having the trader take a loan out from the lender – this time not posting any collateral – then paying back the borrower’s debt and collecting the deposit. Using the deposit they can pay back the original loan and pocket the remaining funds.

Flash loans were already available on other DeFi projects such as the non-custodial lending platform Aave Protocol, which has offered them since the beginning of the year.

bZx only launched its own flash loan instruments on Monday. CEO Tom Bean defended the decision to introduce flash loans onto the platform. “By all accounts, the flash loan code on bZx was not what allowed this attack. It was just a tool used that functioned correctly and could have been swapped out for dydx and Aave flash loans,” he wrote on the company’s Telegram channel.

Kyle Kistner, bZx’s chief visionary officer and operations lead, confirmed, also on Telegram, the flash loan hack was “completely tractable.” He highlighted that bZx would accelerate plans to integrate Chainlink to diversify price feeds and prevent oracle manipulations from happening again.

A representative for bZx told CoinDesk the team was trying to resolve the exploit with its team of engineers. Bean and Kistner did not immediately return calls for comment.


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Ethereum should consolidate position above $300 by mid-March

Over the past four days, Ethereum has recorded significant price volatility. After registering a significant dump of around 18 percent over 15-16 February, the market’s 2nd largest crypto-asset jumped right back above the $270 mark. Over the past 24 hours, Ethereum had recorded a positive turn around of 8.01 percent, with a market cap of over $30 billion.

Source: ETH/USD on TradingView

On observing Ethereum’s 1-day chart, it can be identified that the surge on 30 January was a bullish breakout that surfaced due to the formation of a long-term cup and handle pattern. The pattern started developing towards the end of November 2019 and took shape over the last 3 months.

After the spike on 30 January, Ethereum inevitability breached past its key resistance at $229 (i.e acting support, at present) and the token has since, managed to consolidate over the $250 mark. The aforementioned correction on 15 February did bring it below $250 for 24 hours, but the price bounced right back.

At press time, the bullish momentum was picking up pace again. Hence, there is a possibility that ETH may cross $300 over the next few days. However, it would be short-lived.

A minor correction down to $251 would allow the token to successfully head towards the $303 resistance by mid-March and consolidate above the range for a longer period of time.

However, according to the VPVR indicator, trading volume at $229 has been strong over the past six months and repeated corrections from 15 February may allow retracement down till the $229 support.

Ethereum/Bitcoin 1-hour chart

Source: ETH/BTC on TradingView

However, on observing the ETH/BTC 1-hour chart, a re-test down to $229 seems less likely for Ethereum. According to the chart, an inverted head and shoulder pattern had been breached at press time, which suggested that the 2nd largest asset is primed for another bullish surge. A breakout after a head and shoulder is heavily bullish, something that improves the probability of Ethereum crossing $300 in the short-term. Concerns about another bearish pullback will remain after the bullish momentum faces timely exhaustion over the next few weeks.

Conclusion

It is possible Ethereum may breach the $300 mark resistance over the next few days, but a quick retracement will follow that. After a pullback, the token should consolidate between $251-$279, before eventually marching past $303 by mid-march.

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