- Ethereum Soars on Peak Trading Volumes
- Trading Anomalies Reported During ETH, Altcoin Rally
Ethereum (ETH) rallied on Thursday, re-sparking talk of an altcoin season as the asset closes in on the $300 tier.
ETHEREUM SOARS ON PEAK TRADING VOLUMES
Ethereum prices moved up and went vertical after months of sideways movements, with prices surging above $270. Until recently, ETH scored gradual growth over the first weeks of 2020. But February 13 marked the most spectacular daily performance in the year to date.
Ethereum made both the most significant daily gains, and managed to boost volumes to an all-time record above $26 billion in daily trading activity. ETH trades boomed across all leading platforms.
The performance of ETH coincided with price spikes of other highly liquid altcoins. Ethereum traded around $273.71, taking its weekly gains to above 29%. Other altcoins also rallied, and to complete the picture, the market cap dominance of Bitcoin (BTC) slid down again, to 61.6%.14 BTC & 30,000 Free Spins for every player, only in mBitcasino’s Crypto Love Affair! Play Now!
The high activity of ETH thus started to look like the makings of an altcoin season. The most liquid, high market cap altcoins boomed in the past day, extending the attempts to push off to higher valuations. In the past day, the overall market cap for all coins went above $303 billion once again, clearing a landmark to bounce off the recent lows.
The rally expanded market capitalizations, and now, there are 18 altcoins with market cap above $1 billion. The altcoin bear market at one point hurt overall valuations and only 5 altcoins managed to hold their valuations above $1 billion. ETH, however, may be one of the stronger coins for 2020, as it escapes months of stagnation. The asset is also being more actively used in crypto-based lending, extending its utility. But in February, the gains of ETH may be partially speculative.
TRADING ANOMALIES REPORTED DURING ETH, ALTCOIN RALLY
Even more curiously, data from Coinlib shows a trading anomaly. The Indonesian rupiah, an asset largely unknown in the crypto space, for some reason registered as trading billions against BTC, ETH, and a handful of leading coins. Reporting the exact ETH volumes is uncertain, and most statistics show significant activity across all exchanges.
Reports on CryptoCompare briefly revealed more than 87% of ETH volumes is concentrated on “other” so far unknown and unnamed exchanges, possibly explaining the Indonesian rupiah anomaly. If the current rally is caused by faked volumes, it is possible the ETH rally and the makings of the altcoin season may reverse quickly.
The significant appreciation of assets in February has sparked fears of correction happening soon. The crypto market has a history of big price drops roughly once per quarter, thus making the current valuations look shaky.
A Severe Ethereum (ETH) Correction is Expected by Traders After 125% Rally: Here’s Why
Ethereum (ETH) has front run bitcoin throughout the past 42 days. As the bitcoin price surged by around 50 percent against the USD, ETH recorded a 125 percent rally. The explosive upsurge of ETH may be coming to an end traders warn, if BTC begins to correct.
Ethereum has been a more volatile version of bitcoin during the recent rally
During a bull cycle, major alternative cryptocurrencies (altcoins) tend to precede bitcoin with strong upward momentum.
It took less than two months for Ethereum to recover from around $120 to $280, demonstrating a vertical price movement for the first time since June 2019.
Altcoins tend to outperform bitcoin amidst an ongoing rally, but during consolidation, most altcoins are at the mercy of bitcoin.
In the past two months, for instance, bitcoin has seen an extended rally with minor pullbacks, establishing solid support levels as basis for a stronger upside movement.
In contrast, altcoins like Ethereum spiked up by 80 to 130 percent with little to no pullback, leaving it vulnerable to a steep pullback.
DonAlt, a renowned cryptocurrency trader, said on a livestream that if the bitcoin price begins to pull back to the $7,000s, the altcoin market is highly likely to experience a steep correction.
Ethereum has been one of the best performing cryptocurrencies year-to-date and as such, DonAlt emphasized that the chart of ETH at larger time frames are showing strength compared to other cryptocurrencies.
Still, if the weekly candle of bitcoin closes below a key support level at $9,550, the trader noted that the market could start to correct from its recent upsurge.
The monthly chart of bitcoin also indicates it is vulnerable to seeing an evening star formation, which typically indicates a local top.
Some traders believe ETH is preventing the market from a large crash
Major altcoins including XRP, EOS, and Cardano (ADA) have already shown rejection at larger time frames, especially at a weekly level.
Ethereum is the only top cryptocurrency in the market to have maintained a green weekly candle, two days before close on February 24.
One trader known as Mac said “ETH is currently keeping BTC alive and will probably keep it alive for awhile,” alluding to the fact that Ethereum has provided the cryptocurrency market with momentum in the last two weeks.
The breakdown of ETH followed by a pullback of bitcoin below $9,500 and potentially in the low $9,000 region could spell a local top in the cryptocurrency market for the foreseeable future.
The total capitalization of the cryptocurrency market also showed rejection at $300 billion, struggling to rebound above August 2019 levels.
Ethereum News Today – Headlines for February 22
- Ethereum ProgPow update set to go live on July 2020
- ASIC may pose a threat to the Ethereum network
- The ProgPow hard fork will bring changes to Ethereum
Ethereum News Today – according to reports, the Ethereum ProgPow update has been scheduled to launch in July this year as Ethereum’s core developers conclude preparations to make the digital asset more ASIC resistant. Ether’s core developers have reportedly reached an agreement to implement the ProgPow hard fork following the EIP-1962 upgrades which are scheduled for June 2020.
The EIP-1962 update is set to add some minor features to Ethereum’s cryptographic functions. The network’s core developers have reportedly been promoting this ProgPow hard fork vigorously. This is because are solidly behind the improvements that this initiative brings to Ether. Some developers have expressed concern as there are fears that the hard fork could split the Ethereum community.
The Update is a Cause for Concern for Some
The contentious update has been a cause for concern regarding crypto exchanges running different versions of Ether all comprising of the old and new mining models which can mean a new fork for Ethereum. The exchanges can also increase their fee and the Ethereum community might inevitably split. Now that a consensus has been reached its implementation will be a reality.
James Hancock, Ethereum’s hard fork coordinator, said there wouldn’t be any split in the Ether community because the hard fork is reportedly the ‘read-to-go’. Note that Ethereum split occurred some time ago when DAO (decentralized autonomous organization) split and took about three and a half million ETH tokens. The parties affected were refunded by developers, and dissenters launched Ethereum Classic as tagged the move a developer overreach.
Despite minor dissent to Ethereum’s ProgPow hard fork, the bulk of core developers working on the project have shown support for the update. The discussions brought to the fore fissures in the developer Blockchain, as many influential developers showed their contrarian viewpoints. All in all, the meetings were elaborate.
How Does ASICs Pose a Threat to Ether?
Ethereum has resisted ASIC mining since it began. It was always more favorable for the Ether community to distribute coin via simple computer hardware. This invoked more community participation and even helped to decentralize the efforts of the ETH token. When Bitmain launched its Ethereum ASIC in 2018, it was regarded as an attack on the Ethereum community. Eventually, other manufacturers followed and launched similar products.
Another development was staking which was also in the works and would have rendered any future updates unnecessary. To date, resistance to ASIC has reportedly been successful because developers are keen to keep the platform as transparent as possible.
Ethereum ProgPow update scheduled for July 2020
Ethereum ProgPow update is coming in July 2020 as ETH core developers prep to make the coin more ASIC resistant. Core developers of ETH have reached a consensus to implement ProgPow hardfork after the EIP-1962 update that is scheduled around June. The EIP-1962 update will add minor features to the cryptographic functions of Ethereum.
Core developers have been vigorously promoting the implementation of ProgPow hardfork as they stand behind the improvements it brings to the coin. Some have expressed their displeasure as it could split the community. The contentious update raises concerns about exchanges running different Ethereum versions comprising of both old and new mining algorithms which can essentially mean a new Ethereum fork. The exchanges can increase their fee while the community may split. Now that they have reached a consensus, its implementation will become a reality.
Ethereum ProgPow update is ready-to-go
Ethereum hardfork coordinator, James Hancock, said that there would be no split in the Ethereum community as the hard fork is the ‘read-to-go’. It is worth mentioning that Ethereum split happened some time ago when a ‘decentralized autonomous organization’ (DAO) exploit took around three and a half million ETH. The affected parties were refunded by the developers, and the dissenters set up Ethereum Classic as they saw the move as developer overreach.
Despite the minor dissent to the Ethereum ProgPow update, most of the core developers have stood behind the update. The discussions did bring to fore the fissures in the developer network, as many influential developers expressed their contrarian viewpoints. Still, the meetings were elaborate, and most of the issues were resolved amicably.
How ASICs pose a threat to Ethereum Ethereum has been resisting ASIC mining since its early days. It was always favorable for the Ethereum community to distribute Ether via simple computer hardware. It invoked community participation and helped in the decentralization efforts of the token. When Bitmain Ethereum ASIC was launched in 2018, it was seen as an attack on the community. Other manufacturers followed suit and launched similar products. Staking was also in the works which would have rendered future updates unnecessary. So far, resistance to ASIC has been successful as developers keep the platform more transparent.