Ether, XRP Rise to 1-Month Highs While Bitcoin Falls
Demand for alternative cryptocurrencies has seen their performance rise over the last 24 hours despite bitcoin’s (BTC) failure to take another leg up.
It raises the question as to whether the “alt season”, a period where alternative crypto sees considerable growth regardless of BTC’s performance, is finally here.
Ether (ETH) and XRP (XRP) rose between six to 10 percent on the day backed by solid demand seen in large 24-hour trading volumes.
The event marks a divergence from recent weeks with BTC’s dominance rating, a share of the total crypto market value, having hit a 30-month high above 70 percent earlier this month.
That number has since dropped to 68.3 percent as interest in alternative cryptos begins to pick up once more.
As seen above, both XRP and ETH experienced swift rallies in their price between 10 pm on Sept. 17 and 3:00 am Sept. 18, while BTC was down 1 percent over the same period.
Other notable crypto assets such as Stellar (XLM), Binance Coin (BNB) and Litecoin (LTC) are also up between 2.5 and nine percent.
The total market capitalization of all crypto, excluding BTC, also rose by more than $5.4 billion over 24 hours, while total trading volume was up $7.2 billion.
It could be a sign that investors are growing wary of any further potential gains in BTC’s growth and looking elsewhere, given that its price has remained within a $300 range for nearly 2 weeks.
Disclosure: The author holds no cryptocurrency at the time of writing.
XRP, ETH and BTC image via Shutterstock; charts via Trading View
ETHEREUM CONFERENCE CONCLUDES WITH ETH 2.0 LAUNCH OPTIMISM
- DeFi Dominated Ethereum Hackathon
- Vitalik on ETH 2.0
The annual Ethereum hackathon in Denver, Colorado was concluded yesterday with a number of significant project developments and renewed optimism for the ETH 2.0 launch.
DEFI DOMINATED ETHEREUM HACKATHON
The annual ETHDenver event came to a close last night with a series of celebrations for the winners of programming contests and renewed hopium for the next iteration of the world’s most popular smart contract and decentralized application platform.
The conference, previously termed a hackathon, attracts big sponsors and developers from across the globe that compete in building projects on the Ethereum network. Leading up to the weekend event was ‘BUIDL week’ hosting workshops and tech demos and panels for the growing blockchain community.
Among the usual categories for gaming dApps, IoT, smart contracts, scaling, and add-ons for popular platforms such as MetaMask, there was a large focus on DeFi this year.
Decentralized finance has been the fastest growing thing in crypto last year and that momentum has continued into 2020 with a recent record high of $1.2 billion total value lockup hit over the weekend.14 BTC & 30,000 Free Spins for every player, only in mBitcasino’s Crypto Love Affair! Play Now!
One unfortunate outcome for one company in attendance was the exploitation of DeFi lending protocol bZx which took down its Fulcrum trading platform following a 10,000 ETH ‘flash loan’ being taken out by the attacker.
Staked CEO Tim Ogilvie who works closely with bZx said;
“There are big risks. It’s a new category, it’s moving fast and that means some things are going to break,”
Speaking on Saturday, Vitalik Buterin also shared his views on the DeFi markets and where things are heading;
“I think the DeFi applications that see the most use are the simplest ones…stablecoins, synthetic assets, decentralized exchanges,”
Most wanted more clarification on the long awaited migration to ETH 2.0 and the Ethereum co-founder had a few things to say on that as well.
VITALIK ON ETH 2.0
Buterin expressed his optimism for the Serenity launch date, stating that he definitely thinks ETH 2.0 has been proceeding quite quickly and regularly in the last few months.
Acknowledging that scaling solutions were long overdue he added that new options such as rollups are being implemented to facilitate growth on the network before the new blockchain can go live.
“I hope that ETH2 gets released quickly…but even if it takes five years, rollups will give us some leeway until sharding goes live,”
Buterin was then asked about his role and whether the project could survive without him. Due to the influx of new researchers contributing to Ethereum he was confident that it could definitely survive without his input and has been largely ‘hands-off’ for many community debates.
Ethereum prices have continued to correct falling below $245 during Monday morning trading in Asia.
Ethereum could push above $305 before March as golden cross emerges
Despite excellent gains this year, the looming death cross that Ethereum has been facing runs through the minds of concerned investors since September last year. However, the increasing fear that ETH‘s 130% appreciation this year could come crashing down can now be put to rest, as the 50-day moving average has finally crossed over the 200-DMA.
According to CoinMarketCap, Ethereum has a market capitalization of $29.87 billion, with $24 billion worth of ETH traded in the last 24 hours.
Ethereum 1-day chart
Source: ETHUSD on TradingView
The flagship Ethereum coin has been stretching its neck up this month, exhibiting a nearly 54% increase since February 1. Though a brief corrective move took place yesterday, on February 15, ETH still looks to be extremely bullish, and will likely push up further in the days to come.
The 1-day chart showed strong support at the 38.2% Fibonacci retracement line, meaning ETH will find it difficult to pull under $256 in the near future. The 50 and 200-day moving averages posited an extremely bullish argument for the Ethereum coin, having moved into a golden cross during the correction one day prior. With both the MAs moving under the price, we could see some explosive movement from ETH in the next week or so.
MACD also predicted appreciation, with the signal line moving well under the MACD line, at the 20.0 mark. The Relative Strength Index (RSI) indicated an overbought market. However, this hasn’t prevented ETH from appreciating despite spending multiple days above the 70.0 mark over the last few days. With RSI appearing to be collapsing, a corrective move could be incoming, followed by further appreciation.
With technical indicators presenting such strong bullish signals, and trade volumes rising, it is likely Ethereum will see upward price movements over the next week. Considering the 38.2% Fibonacci retracement line at $269 was instrumental support when ETH was at its 2019 high in June, a push above this level could see a movement to above $305 before the month is up.
Data from blockchain analytics firm, CoinMetrics, shows Ethereum’s volatility based on 60-day returns has been rising since the start of the year. Starting January at just 0.032, volatility touched 0.04 this month, dipping under 0.039 just days ago. This heightened volatility could enable larger swings in ETH‘s movements in the short to medium-term.
The golden cross alone should be enough to determine that Ethereum is likely to move up in value over the next week. This, combined with bullish signals reported from MACD and RSI also support the idea of short to medium-term price appreciation. With volumes on the rise, a push above the key 38.2% Fibonacci retracement line at $277 could facilitate a pump to above $305 before March arrives.
Vitalik Buterin Shares His Views on Ethereum 2.0 and DeFi at ETHDenver 2020
Vitalik Buterin is enthusiastic about the world of decentralized finance, largely built on Ethereum. Moreover, he believes in the absolute success of Ethereum 2.0.
Last week, the largest hackathon for Ethereum and other blockchain protocol enthusiasts ETHDenver 2020 took place in Colorado. Within the 3-day event, a wide range of activities is offered, including talks of top blockchain experts on the development of the industry. Ethereum co-founder Vitalik Buterin delivered a speech as well. He shared his opinion on decentralization in general and commented on the development of Ethereum 2.0.
The Promising World of DeFi
Firstly, Buterin paid attention to decentralized finance (DeFi). Unsurprisingly, he is enthusiastic about the world of decentralized finance, largely built on Ethereum.
Earlier, Buterin stated:
“I’m very excited about the potential DeFi offers in principle. The idea that just anyone, anywhere in the world, can have access to a system that lets them pay each other, and choose their own financial exposure, is a really powerful thing. It’s something that a lot of people don’t have access to.”
During ETHDenver 2020, he said:
“I think the DeFi applications that see the most use are the simplest ones…stablecoins, synthetic assets, decentralized exchanges.”
Decentralized Finance (DeFi) refers to the movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols. And now this movement is gaining traction. As we have reported, DeFi is believed to be a big deal for the crypto community and some believe it will dominate the blockchain space this year.
Ethereum 2.0 and Its Prospects
Further, Vitalik Buterin spoke on the development of Ethereum 2.0 that is currently under testing. Combining Proof-of-Stake (PoS), Sharding, and eWSAM projects, Ethereum 2.0 aims to run ‘tens of thousands of transactions per second.’
Buterin has been ‘very confident’ about the new Ethereum 2.0 network. At ETHDenver 2020, he said:
“I definitely think ETH2.0 has been preceding quite quickly and regularly in the last few months. I hope that ETH2 gets released quickly…but even if it takes five years, rollups will give us some leeway until sharding [goes live].”
By the way, with streamlining Ethereum 2.0, the number of developers working on Ethereum is growing. According to Joseph Lubin, Ethereum co-founder and ConsenSys CEO, they aim to bring more than a million developers to the network.
Ethereum 2.0 will facilitate a number of on-chain transactions while maintaining key aspects of decentralization and security. Therefore, the network has a high chance of success.
Buterin has also shared his view on whether Ethereum can survive without him. According to Buterin, Ethereum definitely can’ survive in technological terms due to new researchers contributing to Ethereum. But speaking of a social perspective, Buterin was quite uncertain.
The final launch date of Ethereum 2.0 is unknown. How the launch will affect the Ethereum price is also unclear. Various sources provide different predictions. One of the biggest assumptions belongs to online analyst Bobby Ullery. According to the expert, Ethereum will reach $11,375 in 2020. In the analysis, Ullery emphasizes such fundamental factors as the broader blockchain adoption in the financial and business sectors worldwide.
At the moment, Ethereum price is beating its own records of stability grows steadily. It makes up $251.18 per coin.