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Ethereum Price (ETH) In Corrective Decrease But Likely To Bounce Back



  • ETH price is slowly moving down and recently broke the $180 support area against the US Dollar.
  • The price could soon test the $172 or $170 level before it starts a fresh increase.
  • Yesterday’s highlighted key bearish trend line is still active with resistance near $179 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is still trading in a positive zone as long as there is no close below the $170 support.

Ethereum price is in a corrective decrease versus the US Dollar, while bitcoin is consolidating. ETH price might extend its decline to $172 before it could climb again.

Ethereum Price Analysis

After forming a short term top near $186, ETH price started a downside correction against the US Dollar. It broke the $180 support level and the 100 hourly simple moving average to enter a negative zone. Moreover, the recent decline in bitcoin pushed Ethereum below the $178 level. The decline was such that the price tested the $175 support level and it is currently consolidating losses.

It corrected above the $176 level plus 23.6% Fib retracement level of the last drop from the $186 high to $175 swing low. However, the previous support area near the $180 level is acting as a resistance. Besides,

the 100 hourly SMA is also preventing gains near $179. More importantly, yesterday’s highlighted key bearish trend line is still active with resistance near $179 on the hourly chart of ETH/USD.

Above the trend line, the next key resistance is near the $180 level. It coincides with the 50% Fib retracement level of the last drop from the $186 high to $175 swing low. If there is an upside break above the trend line, the 100 hourly SMA, and $180, then the price could start a fresh increase. The next key resistance area is near the $185 level, above which the price could accelerate higher.

On the downside, there is a decent support forming near the $175 level. However, it seems like there could be a downside spike before the price starts a fresh increase above the $180 level.

Ethereum Price Analysis ETH Chart

Looking at the chart, Ethereum price is clearly grinding lower below the $180 level. It seems like the price could test the $172 level before it attempts a decent upward move. Any further losses may perhaps push the price towards the key $170 support level. Overall, the price is likely to complete its correction near $172 or $170 before it could rise again.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is showing a few bearish signs.

Hourly RSI – The RSI for ETH/USD is currently below the 50 level, with a bearish angle.

Major Support Level – $172

Major Resistance Level – $180

Source: newsbtc


Ethereum (ETH/USD) forecast and analysis on January 24, 2020



Cryptocurrency Ethereum (ETH/USD) is trading at 165. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bullish trend on Ethereum. At the moment, cryptocurrency quotes are moving near the lower border of the Bollinger Bands indicator stripes.

Ethereum (ETH/USD) forecast and analysis on January 24, 2020

As part of the Ethereum forecast, a test of level 162 is expected. Where can we expect an attempt to continue the growth of ETH/USD and the further development of an upward trend. The purpose of this movement is the area near the level of 182. The conservative buying area Ethereum is located near the lower border of the Bollinger Bands indicator strip at 160.

thereum-ETHUSD-forecast-and-analysis-on-January-24-2020.png">Ethereum (ETH/USD) forecast and analysis on January 24, 2020

Cancellation of the option to continue the growth of the Ethereum rate will be a breakdown of the lower border of the Bollinger Bands indicator stripes. As well as the moving average with a period of 55 and the closing of quotations of the pair below the area of ​​151. This will indicate a change in the current trend in favor of the bearish for ETH/USD. In case of breakdown of the upper border of the Bollinger Bands indicator bands, we should expect an acceleration in the fall of cryptocurrency.

Ethereum (ETH/USD) forecast and analysis on January 24, 2020 implies a test level of 162. Further growth is expected to continue to the area above level 182. The conservative buying area is located near area 160. The breakdown of the growth option for cryptocurrency will be a breakdown of level 151. In this case, we should expect further fall.

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ETH2.0 Deposit Contract successfully passes Formal Verification



The formal verification of the Ethereum 2.0 deposit contract has been passed successfully. Now Ethereum deposit contract is ready to go.

Ethereum 2.0 deposit contract is considered one of the most important smart contracts for the network and now it has successfully verified by Runtime Verification.

Deposit Contract is Ready to go

Ethereum 2.0 deposit contract has passed the last hurdle. Runtime Verification has successfully completed the formal verification of the ETH2.0 deposit contract.

Although we found several critical issues of the deposit contract during the formal verification process, some of which were due to subtle hidden Vyper compiler bugs, all of the issues of the deposit contract have been properly fixed in the latest version (v0.10.0).

Danny Ryan who is the Ethereum 2.0 coordinator says that this is the primary audit or verification and that formal verification was the last hurdle that Ethereum 2.0 has passed successfully.

He further elaborated:

This is the primary audit/verification. The contract and the formal verification work is now for public review.

I’ll be explicitly requesting review from some teams/individuals and will make a call out for it in my next blog post.

According to Trustnodes, no more audits have been planned for the deposit contract. However, there are two audits for the beacon chain that will take place in February.

Deposit contract is a gateway to join ETH2.0

The deposit contract will serve as a gateway to join Ethereum 2.0. In order to deposit contract, validators on the new Proof of Stake Beacon Chain are required to deposit some amount of ETH by sending a transaction over ETH 1 network.

These deposits will be locked on ETH 1.0 chain by the deposit contract that also holds the transaction history. The deposit history is efficiently stored with the help of the Merkle tree data structure.

Apart from this, A Twitter user reports that there are almost 22,000 active validators that are running the first ETH2.0 client on testnet.

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Ethereum supply getting more distributed with time: Report



Over the last decade, the digital assets industry has achieved enormous success; however, its reputation has often been weighed down by major lows. The hack of Mt. Gox was one of the first blows to the industry, raising serious concerns with respect to network security and asset protection.

When Mt.Gox was in operation, it handled over 70 percent of the total BTC transactions around the world. After the hack, the major takeaway from the disaster was that if an exchange becomes too dominant, it is important to keep track of its activity in order to eliminate the threat of being compromised.

Coinmetrics’ latest State of the Network report discussed and analyzed the amount of Bitcoin and Ethereum held by major exchanges around the world, in an attempt to answer whether any existing exchange is at risk at the moment.

The report tracked the supply of BTC and ETH, as well as a number of tokens flowing in and out of the sampled list of exchanges.

Source: Coinmetrics

It was observed that over the last 5 years, the amount of ETH held by some of the big exchanges did not consistently increase, unlike BTC. The chart above pictured an interesting observation according to which, the volume of ETH slumped significantly during the bull run of 2017 and the price burst throughout 2018. The levels have recovered since, however, they are not as high as they were between 2016 and 2017.

Over the last 5 years, ETH accumulated by various exchanges has differed over time. Kraken was the first major exchange where ETH became tradable, so it

acquired a huge volume of it early on. However, the levels dropped from 9 million in January 2017 to 3 million by January 2018.

Source: Coinmetric

However, the ETH exchange supply has become more distributed over the past five years. The Coin Metrics’ post read“As of January 2020, Huobi, Bitfinex, and Binance had 23%, 20%, and 15% of ETH supply, respectively.”

The report also analyzed the on-chain exchange supply of ETH when key events were recorded on certain exchanges.

Initially, Poloniex performed well in a largely unregulated market. The exchange handled significant altcoin trading between 2016 and 2017 but by the end of 2017, the exchange witnessed certain support issues and could not cope with an influx of new users.

Source: Coinmetrics

In February 2018, the exchange was acquired by Circle to improve its infrastructure. However, it adversely affected Poloniex’s ETH holdings. ETH held by the exchange slumped periodically after the acquisition and by November 2019, their on-chain supplies were at their lowest levels since January 2016.

Source: Coinmetrics

On the contrary, Huobi, one of the world’s largest exchanges, notably improved in terms of ETH supply. However, the spike in levels surfaced after reports suggested that the ETH coming out of the infamous PlusToken scam were sold in large quantities on Huobi. The post added“There has also been speculation that the PlusToken selloff may have been directly linked to the BTC rally and subsequent crash during the summer of 2019.”

The research concluded by claiming that over time, the ETH supply has been getting more distributed, something that is a positive sign for the digital asset ecosystem as general users are getting more aware of illicit activities involving various exchanges.

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