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Ethereum

JPMorgan Gives 3 Reasons Why Ethereum is Outperforming Bitcoin

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Wall Street banking giant JPMorgan Chase has stated that Ethereum is outperforming Bitcoin and it expects that trend to continue.

In a note to investors on April 27, analysts at U.S. banking giant JPMorgan appear to have turned extremely bullish on Ethereum, noting that it has beaten its big brother in terms of gains this year.

In April so far, Ethereum has made 45% to current levels, whereas Bitcoin, which has seen market dominance slump to 50%, has actually declined 9% over the same period.

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JPMorgan pointed out that there is an inherent difference between the two assets, with BTC being the store of value and ETH being a technology and the backbone of the entire crypto-native economy, functioning as much more than a medium of exchange.

Ethereum advocate Anthony Sassano was in agreement:

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Three Reasons For Ethereum

According to a Business Insider report, JPM analysts stated:

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“To the extent owning a share of this [ether’s] potential activity is more valuable, the theory goes, ether should outperform bitcoin over the long run,”

The first reason it cited was a liquidity shock that hammered Bitcoin, but Ethereum was able to weather it. Leveraged traders on derivatives markets were liquidated, and Bitcoin prices plunged, resulting in a correction of 27%. It rolled reason two into this, stating:

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“In a market with significantly higher spot turnover, it is plausible that the underlying base of long exposure [in ether] is less reliant on leverage in the form of futures and swaps [than bitcoin],”

Thirdly, the Ethereum network has long been characterized by a higher pace of transactions on the public blockchain than Bitcoin. This is likely due to increased activity on DeFi and other platforms, according to JP Morgan.

Bank strategists added that as a consequence, a higher proportion of ETH behave as if it is highly liquid when compared to Bitcoin – 11% versus 4% by some estimates over the past month.

“In a market with significantly higher spot turnover, it is plausible that the underlying base of long exposure is less reliant on leverage in the form of futures and swaps,”

In other words, Ethereum does not suffer the volatile price dumps caused by over-leveraged positions and has managed to outperform Bitcoin as a result.

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ETH Price Update

Following its all-time high of $2,700 yesterday, Ethereum went on to hit another peak of $2,760 during early trading on Asian markets on Thursday.

At the time of press, ETH had retreated to $2,700 again but was still in a solid uptrend that has seen the asset gain 14% since the same time last week.

Bitcoin, meanwhile, had declined 2% on the day to trade at $53,730 after failing to break resistance in the $55K zone.

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Ethereum

Massive drop in Ethereum exchange reserves signals imminent supply shock, ETH eyes $8,000

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  • Over 400,000 ETH was pulled out of Coinbase, dropping exchange reserves and driving a supply crisis.
  • Average Ethereum gas fees stay above $20 due to an increase in pressure from smart contracts on the network’s blockchain. 
  • Analysts who are bullish on Ethereum expect ETH price to cross $5000 in an upward climb. 

Institutional investors are bullish on Ethereum with rising capital inflow. Ethereum reserves across exchanges have dropped as outflow increases. 

Coinbase notes massive Ethereum exchange outflow

Coinbase noted a withdrawal of 400,000 Ethereum tokens, and according to community-driven crypto platform CryptoQuant, it is likely that the outflow was institutional activity. Analysts expect a bullish impact on ETH prices. 

400,000 Ethereum tokens are the equivalent of $1.5 billion, withdrawn from the second-largest cryptocurrency exchange. The exchange outflow indicator is considered a sign of increased outflow and a supply shortage in Ethereum. 

Ethereum Exchange Outflow

Ethereum Exchange Outflow.

Ethereum has posted over nearly 20% gains in the past two weeks. 

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Interestingly, there is a spike in whale activity on the Ethereum network. Over $188 million worth of Ethereum was moved between two anonymous cryptocurrency wallets in a single transaction. 

A mysterious whale initiated the transaction, and it was sent to an unknown recipient. The details of the transaction are as follows:

Whale activity on the Ethereum Network

Whale activity on the Ethereum Network.

With news of Bitcoin ETF getting approval by the Securities & Exchange Commission next week, experts are awaiting Ethereum’s turn. Analysts are of the opinion that following Bitcoin ETF approval, capital inflow to Ethereum and altcoins will increase. 

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Pseudonymous cryptocurreny trader and analyst @jroberts3334 has set a target of $8000 for Ethereum for February 2022. 

Simon Dedick, Managing Partner of Moonrock Capital, is bullish on Ethereum; he tweeted:

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FXStreet analysts have evaluated the ETH price trend to analyze where altcoin is headed next. Analysts have set a target of $5200 for ETH price. 

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Ethereum 2.0 Next Steps to Mainnet Shared by Ethereum Foundation

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Ethereum (ETH) developers have entered final phase of testing before hotly anticipated ETH1-ETH2 transition

Tim Beiko, Ethereum 2.0 researcher and coordinator at Ethereum Foundation, published a recap of Amphora devnet launch. Why is this milestone special for progress to Ethereum 2.0?

Amphora workshop has been completed successfully

Mr. Beiko has taken to Twitter to share his blog post about the Amphora workshop that launched the interoperable devnet of Ethereum 2.0 Merge.

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As such, Ethereum’s (ETH) core developer community entered the last phase of its incentivized testing, i.e., “devnets.” Ethereum 2.0 devnets should be considered “public networks with hardened specs for community to test.”

Amphora meetup was joined by a number of teams behind ETH2 client implementations: Besu, Erigon, EthereumJS, Geth, Nethermind, Nimbus, Lighthouse, Lodestar, Quilt, Prysm and Teku.

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Amphora’s agenda included five milestones (M1-M5); all of them were accomplished successfully.

10,000 validators, 100 nodes: Welcome to Pithos

To achieve an M5 milestone, a network of 10,000 validators across 100 nodes launched on the top of proof-of-work (PoW) consensus, successfully transitioned to proof-of-stake (PoS) and finalized the chain.

On Oct. 14, 2021, the more stable version of Amphora testnet, Pithos, launched to facilitate upcoming experiments.

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As covered by U.Today previously, Ethereum 2.0 Merge was successully activated in an interoperable multi-client testnet in a secret location on Oct. 8, 2021.

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Ethereum Looks Set To Explode As 400,000 ETH Exits Coinbase

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On-chain data shows crypto exchange Coinbase saw a withdrawal of 400k Ethereum yesterday. This could be a sign of activity from institutional investors, and could prove to be bullish for the coin.

Coinbase Observes Outflow Of 400,000 ETH

As pointed out by a CryptoQuant post, about 400k ETH (1.5 billion at the current exchange rate) was withdrawn yesterday from the crypto exchange Coinbase.

The indicator used here is the Ethereum outflow, which shows the total number of coins exiting wallets of the exchange.

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When the metric shows a big spike, it means a lot of ETH was withdrawn from the exchange. Investors usually take out a lot of coins to either hodl them or to sell them through OTC deals.

So, constant outflows can mean that there is a buying pressure in the market and investors feel bullish on Ethereum.

Now, here is how the chart for the indicator looks like for the crypto exchange Coinbase:

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Ethereum Coinbase Outflow
ETH's outflow showed a large spike yesterday | Source: CryptoQaunt

As the above graph shows, the crypto exchange Coinbase saw a spike of a massive 400k Ethereum in outflows yesterday.

Outflows this big can be a sign of activity from institutional investors as certainly normal holders won’t have these many coins to move around.

Institutional investors being bullish on ETH can mean huge things for the crypto. If ETH has to move to the next leg up, it will need a lot of money pumped into it, and this usually means whales like institutional investors need to get involved.

As these outflows already signal that institutional investors are taking their coins out of exchanges to perhaps hodl them, ETH’s outlook looks bullish.

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Ethereum Price

At the time of writing, ETH’s price floats around $59.9k, up 9% in the last seven days. Over the last thirty days, the crypto has amassed 25% in gains.

The below chart shows the trend in the price of the coin over the last five days:

Ethereum Price Chart
ETH's price makes a push up and approaches the $4k mark | Source: ETHUSD on TradingView

ETH has made a big push in the last few days as the coin now approaches a test of the $4k mark. It’s unclear at the moment if ETH can keep this momentum going and reach a new all time high (ATH) soon, or if it will falter once again.

f the outflows are anything to go by, the general sentiment seems to be bullish and institutional investors getting involved can help with the big price pushes the crypto needs to break important resistance lines.

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