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Ethereum (ETH) in Free Fall, Down 34% Following Bitcoin Cash Idea

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  • Ethereum (ETH) slides 34 percent as bears step up
  • Bitcoin Cash may be used to temporarily solve Ethereum’s scalability problems

Vitalik has an audacious plan of integrating Ethereum with Bitcoin Cash before ETH 2.0 full activation. However, there is resistance from some quarters with a majority against his idea. In the meantime, bears are in full throttle as ETH slumps 34 percent from last week’s close.

Ethereum Price Analysis

Fundamentals

Regardless of how Ethereum supporters try to scrutinize the platform’s performance, everything will boil down to scalability. Striking a perfect balance and ticking all the boxes satisfying the requirements of the blockchain trilemma is hard.

Therefore, while the developer community agitates for scalable networks, it all about making good choices. Presently, Vitalik and team chose decentralization and security over scalability. Limiting as it is, that is not stopping project managers from flocking and launching dApp from the platform. And Joseph Lubin, in an interview, said the network, despite challenges, has to some extent scaled:

“So, I think we’re at many tens of thousands of decentralized transactions per second on the Ethereum network right now. And another point that I believe is that we’ve got all this scalability for specific use cases.”

Therefore, the idea that Vitalik is putting forth is off-putting for Ethereum developers. While it could work considering Bitcoin Cash recent hard forks and their working towards inherently scaling the network without layer two options like in Bitcoin, his choice didn’t bode well with developers. Francis Pouliot saidVitalik’s proposal is an admission of failure:

“The shitcoin has hit a three-year low versus Bitcoin. The founder has all but declared the project a failure today by proposing a humiliating BCash integration to delay the (yet unsolved) scalability crisis.”

Candlestick Arrangements

Ethereum ETH

Presently, the cryptocurrency scene is all red. Leading the plunge are periphery altcoins. Compared, ETH performance, considering its liquidity, is worse. Printing double-digit losses in the last week, bears are firmly in charge.

Note that despite the optimism, the fact that prices are now trading below the $230 support and sell trigger is a mark of bears. As such, and in line with previous ETH/USD trade plans, every pullback towards $230, which is previous support now resistance, is an opportunity to unload the coin at higher prices.

Ideally, and in a typical move, better reloading opportunities will be at $190 and $150 if sellers’ momentum is high.

Technical Indicators

Anchoring this trade plan is May 16 bull candlestick. With high trading volumes of 822k, the bar is visible and leading. Therefore, signaling the end of a retest will be a wide-ranging bull candlestick reacting either at $170-$190 support zone or $150 which is April low, distinct with high participation preferably exceeding 822k of May 16.

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Ethereum

Is Ethereum Becoming Colombia’s Best Money Option?

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It appears Ethereum, the second-largest cryptocurrency and the primary competitor to bitcoin, is growing in popularity inColombia.

 Ethereum Is Carving Out a Name for Itself in Colombia

South America has proven to be a major bitcoin and cryptocurrency haven. Countries like Venezuela, for example, have seen their national currencies subjected to either inflation or other economic problems that ultimately render them useless or inaccessible to native residents. Many have turned to cryptocurrencies like Dash and bitcoin to get their fingers on daily needs such as food and clothing, but Venezuela’s government isn’t adding much to the pot in terms of assistance.

For example, Venezuela’s president Nicolas Maduro has recently introduced the Petro, a national cryptocurrency allegedly backed by the nation’s many oil reserves. There is no mention of these oil reserves in the currency’s whitepaper, and many believe this notion to be false. In addition, Maduro has also tried to work a plan into Venezuela’seconomy that would allow workers to be paid in Petro units rather than the country’s failing bolivar currency.

Unfortunately, this plan has failed to catch on. At press time, the Petro has stirred so much controversy that President Donald Trump has banned all Petro trading within the United States.

While the Petro may have failed in its initial dealings, other cryptocurrencies – like bitcoin and now Ethereum – are garnering new popularity within Venezuela and its South American neighbors. It seems Colombia is turning its sights to Ethereum according to a new survey conducted byPaxful, a peer-to-peer trading platform that allows users to sell, purchase and trade cryptocurrencies privately.

The survey suggests that approximately 87 percent of citizens in Colombia are aware of crypto, while another 80 percent say they’re looking into potential investing options. At press time, however, it’s very difficult for people to garner access to cryptocurrencies given what Paxful CEO Ray Youssef calls a “poor regulatory framework.”

He comments:

 Countries around the world are now taking a closer look at how to contend with the rise of the crypto-economy and the survey reinforced that. We did a university tour in some African countries earlier this year, and we hope to replicate it in Colombia and other countries in Latin America.

Crypto Will Bring Better Trade Options

Further details of the survey showed that over half of the survey respondents were women, suggesting that a female presence in the crypto arena is growing steadily. Also, nearly 60 percent were within the ages of 18 and 34. Lastly, only three cryptocurrencies made it onto the “preferred lists” of many of these participants. They were bitcoin (which occupied the number one spot), then Ethereum and Bytecoin.

Perhaps the most positive data came in the form of 91 percent of surveyed Colombians stating they think crypto will “mark the future of world trade.” They also showed great acceptance and desire for regulation.

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Ethereum Could Still Be Worth Below $400 In The Next Major Bullish Phase

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There have been a lot of experts’ views and analysis of the performance and trend of some top and famous cryptocurrencies. One of the most criticized cryptocurrencies by experts from 2018 till now is Ethereum.

Many believe Ethereum has fallen way below expectations and they may be right. Explicitly, the price of ETH had dropped too low from what it was when its bubble popped in Jan 2018 at around $1433. Now ETH is just for $183 and has left a lot of its investors adrift.  

Things didn’t make any sense initially as Ethereum is the 2nd largest cryptocurrency by market cap and due to its mass acceptance, adoption and massive returns it brought to its investors in early 2018.

But now, most have realized that the market is not the same anymore and what people viewed to be the best is not an ultimate choice after all. Yes, it might be true that some people have made and are still making tons of money from the Ethereum market. However, I believe that’s not an indication that ETH is going to the moon this time.  

According to experts, Ethereum has no more power to moon, even though the cryptocurrency market is well known for how it can mass up big gains from an unexpected momentum strike. This doesn’t make any difference with Ethereum as there seems to be no major excitement left. 

Ethereum Could Still Be Worth Below $400 In The Next Major Bullish Phase
ETHUSD Chart By TradingView

Moreover, experts say economic reasons can be one major cause of ETH’s downfall, thus a simple supply and demand factor. As Ethereum served as the main engine for many projects, most of these companies used ICO’s to raise millions of dollars almost all in Ethereum.

This gave the cryptocurrency a high drive power to soar in Jan 2018. However, the companies after the ICO’s sold their ETH assets to fund their projects, and this made ETH take a gradual fall and remain somehow stagnant till this very day. 

In any case, a short rally could carry ETH pass $300 but as per the analysis made, ETH may Still Be Worth Below $400 In The Next Major Bullish Phase.

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Ethereum (ETH) Likely To Plunge Below $180 To Complete Correction

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Ethereum (ETH) is trading within a large falling wedge. The price is likely to eventually break out of this falling wedge and rally higher potentially towards the 38.2% fib retracement level at $232.15 but it is unlikely to happen before the price sees further downside from current levels. We can spot a downtrend on the RSI on the 4H chart for ETH/USD. That being said, the support at $180 is a strong one but we expect it to be broken nonetheless in order for Ethereum (ETH) to complete its correction. There is also the possibility that this falling wedge might be invalidated in the face of strong bearish momentum and the price could fall a lot lower. 

Any hopes of the price going up to test the $232.15 resistance or to go higher than that are just temporary. If the price breaks below the $180 mark and begins its downtrend, it is going to have a very hard time to break above this level again. This is how we expect the systemic downtrend to begin and this is how ETH/USD will decline to a double digit price before it finds its true bottom. Ethereum (ETH) is not the only altcoin that is on the verge of a brutal downtrend. Most other altcoins face the same fate as BTC/USD is due for further downside and when it begins to fall, altcoins are going to fall a lot harder. If we take a look at the 4H chart for ETH/USD again, we can see that the price has decline in a symmetrical manner. The most likely scenario here is for the price to decline below the $180 mark and test the bottom of the rising wedge. Then it is expected to break out of the falling wedge but remain below $180 after which it could fall sharply to resume its downtrend.

Investors are losing faith in altcoins. The daily chart for Altcoin Dominance (Others.D) shows us that there is plenty of room for altcoin dominance to decline now that it has faced a strong rejection at the 38.2% fib retracement level. This is in line with our expectations because we expect Bitcoin dominance to rise close to 90% in the months ahead. The only way this is going to happen is if Bitcoin (BTC) were to hold its ground better than most altcoins. 

We expect BTC/USD to fall further because we don’t think the bear market is over just yet which is why it makes sense to think that altcoin dominance has yet to fall further. Just because a coin is down 90% does not mean that it couldn’t fall by another 90% from there. In other words, if you invest in an altcoin thinking it has declined 90%, you could still be down by another 90% if it declines that much in the future. It could also end up a lot worse than that in the case of altcoins because most altcoin projects are completely useless with nothing to back their insane valuations.

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