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Ethereum And The Undeniable Signs Of A Bull Market

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In the middle of an outstanding bull market for the whole crypto space, Ethereum stands out in a big way. And it’s easy to see why. On one hand, we have the rise of DeFi and the NFT craze. On the technical side, we have the EIP-1559 update coming in July. And on the corporate side, Visa settling transactions in USDC, the EIB’s €100M digital bond, and the release of CME Ethereum Futures.

Besides that, ETH’s price kept going up while BTC stumbled. That is unprecedented. It was a crypto rule that Altcoins followed Bitcoin wherever it went. Bitcoinist reported the phenomenon as it happened:

Mira Christanto, a researcher at Messari, registered a negative correlation between Bitcoin and Ethereum in the daily chart. With a -4% and a +7%, respectively, Christanto highlighted that this is an unusual event and could be “indicating a start of a new phase”.

Ethereum price chart for 05/06/2021 - TradingView

ETH price chart on Bingbon | Source: ETH/USDT on TradingView.com

Action in the Ethereum ecosystem

Bitcoinist also reported that de two biggest players in de DeFi space recently surpassed the $1B in Total Value Locked. And Ethereum is supposed to surpass the $1B in TVL by itself in the near future. Even though that’s a drop of water to the sea that is the global financial system, it’s important to remember that the whole DeFi space has only existed for a couple of years.

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Related Reading | Eerie Nasdaq Fractal Predicts Bitcoin Is About to See Its Next Leg Higher

On the other hand, when the EIP-1559 update is in place, the Ethereum Virtual Machine will burn a portion of each transaction’s fees. That will make ETH a disinflationary asset. Miners are already rallying against the update, which they feel will rob them of a piece of their earnings. The real question, though, is how will that affect the price? Only time will tell.

nstitutional Acceptance

One of the crypto space’s big stories from the last few months is how global finance embraced Bitcoin. Nevertheless, making less noise, Ethereum also gained ground in institutional acceptance. The credit card giant Visa will not only accept USDC for settling transactions, the company will also run its own Ethereum nodes.

Just last week, the European Investment Bank announced the creation of a two-year Ethereum digital bond. In a timely manner, Bitcoinist reported:

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Citing undisclosed sources familiar with the matter, notes will be registered on the Ethereum blockchain using smart contracts, and the sale itself will be managed by banking giants like Goldman Sachs, Banco Santander SA, and Societe Generale. The tokenized bonds could then theoretically be issued to buyers via an Ethereum wallet.

Related Reading | Is SafeMoon Really… Safe? What Is It And Why It’s The Talk Of Crypto

That’s a huge sign of acceptance by respected global financial institutions. Back in February, we received another sign. The Chicago Mercantile Exchange or CME released ETH futures in their platform geared towards financial institutions and big players. Some analysts think that this is the moment that Ethereum’s unprecedented bull-run started.

The product keeps gaining ground against the CME Bitcoin futures, as Bitcoinist reported:

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During the first seven days of trading, ETH futures volume on CME was only $23 million. Recent data shows one-week volumes are now totaling $353 million – a new all-time high record that keeps getting broken again and again.

Figures provided by CryptoCompare, reveal that CME ETH futures represented 1.36% of their BTC equivalent to start, but since spiked as high as 9.36%.

In conclusion, we’re in the middle of “a MAJOR bull market,” as Peter Brandt said. And it’s Ethereum’s time to shine.

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Ethereum

Ethereum Price Analysis: ETH tests $3,150 resistance, a breakout to follow?

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  • Ethereum price analysis is bullish today.
  • ETH/USD continued to move higher overnight.
  • ETH is likely to pause before breaking higher.

Ethereum price analysis is bullish today as bulls pushed the market price to the $3,150 resistance after a strong rally yesterday. Therefore, we expect ETH/USD to break higher later today and finally set a new higher high.

Ethereum Price Analysis: ETH tests $3,150 resistance, a breakout to follow? 1
Cryptocurrency heat map. Source: Coin360

The overall market traded with a bullish momentum over the last 24 hours. Bitcoin is up by 1.6 percent, while Ethereum has gained 4.47 percent. Meanwhile, Solana (SOL) is the best performer today, with a gain of 10 percent.

Ethereum price movement in the last 24 hours: Ethereum tests $3,150 previous high

ETH/USD traded in a range of $2,976.34 – $3,163.67, indicating a substantial amount of volatility over the last 24 hours. Trading volume has declined by 13.33 percent and totals $18.85 billion, while the total market cap trades around $365.4 billion, resulting in the market dominance of 18.75 percent.

ETH/USD 4-hour chart: ETH ready to set higher high?

On the 4-hour chart, Ethereum price action can be seen to look for a breakout above the previous high of $3,150 as bulls have regained control.

Ethereum Price Analysis: ETH tests $3,150 resistance, a breakout to follow?
ETH/USD 4-hour chart. Source: TradingView

The overall market continued to trade in a bearish momentum last week. After a new lower high was set around $3,650, ETH/USD dropped more than 25 percent until support was found around $2,750.

What followed was a reaction higher, with the previous major support of $3,150 retested as resistance. What followed was another spike lower on Friday, with a slightly higher low set this time.

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Yesterday, the $2,750 support was tested for the third time, with a subsequent rally to $3,150 resistance over the last 24 hours. Overall, we can expect exhaustion for bearish momentum, likely leading the Ethereum price higher over the next 24 hours.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish for today as bulls pushed higher overnight, and the $3,150 resistance currently gets tested. Therefore, ETH/USD should see further upside above the $3,150 resistance later today.

While waiting for Ethereum to move further, read our guides on NFT Games, CoinJar, as well as Bitcoin Memes.

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1/3 of Ethereum Supply Has Been Moved Out of Exchanges in Span of One Year

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Ethereum is being moved away from centralized exchanges, and DeFi might be one of the reasons

According to data presented by Santiment, 1/3 of the circulating Ethereum supply has been moved from exchanges to personal wallets. From Sept. 26, 2020, to this day, the circulating supply has been reduced from 24% to 16%, totaling an 8% loss in a year. The main reason for such a trend is the update of the coin’s network and a rapid price increase.

Ethereum price increase

Accumulation periods usually accelerate after the price of an asset has rapidly increased, which makes investors move funds away from the exchange since they are not willing to sell them. Traders usually hold money on exchanges whenever they are willing to sell their assets.

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Since Sept. 2020, when exchange supplies have started to decrease, the Ethereum price has risen by almost 1,000%, with the average entry being $1,800-$2,000 on the network. The majority of Ethereum holders are currently holding their coins with a 69% profit.

Ethereum Daily Chart
Source: TradingView.com 

The period of accumulation is considered over after on-chain data started reflecting a rapid exchange inflow increase. Usually, after the accumulation period is replaced by spending cycles, the price of underlying assets drops significantly.

Alternative investment options presented

Compared to the previous 2017 bullrun, Ethereum has stepped further in development with the announcement of various alternative investment options like liquidity provision and lending. That is why, in some cases, investors choose to reinvest their coins rather than keeping them on exchanges or selling them.

Total Value Locked
Source: DeFi Pulse 

The total value locked in the DeFi industry is currently staying at $85 billion, with a $95 billion TVL ATH reached on Sept. 6. The current trend indicates that Ethereum holders prefer holding their assets in either personal wallets or DeFi smart contracts, rather than exchanges.

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ETH Price Analysis: A Slowing Mid-Term Bearish Trend Hints Bullish Comeback for Ethereum

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The ETHUSDT price finally slumps by roughly 21% after trading within an expanding channel formed by a bearish and bullish divergence setup on 03 Sep ’21 16:00 and 05 Sep ’21 04:00.

This price move was eventually felt on the Daily time frame ending the mid-term uptrend trend bias, and a transition into a downtrend. A first attempt by the bulls gave in to another 25% sell off that started on 17 September ’21 20:00.

ETHUSDT 4 Hr Chart

ETH price analysis
ETH price analysis

Bullish and Bearish Scenario

The recent bullish divergence on 21 Sep ’21 20:00 led to a slowing of the earlier price drop and a possible hike in the ETH price may just be around the corner. Negative statements towards cryptocurrency transactions by China’s Central Bank (PBOC ) appears to be losing steam and traders may start scaling up a buy position after an advance above the $3174.50 resistance.

On the other hand, a breach of the $2,652.00 support may hint continuation of the down trend.

ETH Intraday Levels

  • Spot rate: $2916.71
  • Trend: Bearish bias
  • Volatility: Low
  • Support: $2652 and $2733
  • Resistance: $3676.28 and $3174.50

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