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Ethereum

3 reasons why Ethereum can hit $3K in the short term despite overvaluation risks

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Ethereum’s native asset, Ether (ETH), dropped after reclaiming its two-month high in the previous session, suggesting that its recent bullish rally was nearing exhaustion. 

In detail, the ETH/USD pair topped out at $2,699 on Sunday for the first time since June 7. The pair’s peak level also pushed its relative strength index (RSI), a momentum-gauging indicator, above 70 — a mark that analysts consider overbought.

Seemingly, traders with short-term risk setups sold the Ether top to secure interim profits, leading up to a modest downside correction.

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Ether eyes a run-up toward $3.25K based on a Falling Wedge breakout setup. Source: TradingView

On Monday, Ether prices rose 1.81% to $2,600 to offset the Sunday sell-off risks.

The upswing indicated that traders could still place higher bids for the cryptocurrency, especially in the days leading up to the Ethereum’s London hard fork upgrade that would — for the first time — bring deflationary features to the project’s economy via a new base-fee burning mechanism.

Greg Waisman, co-founder and chief operation officer of payment network Mercuryo, noted that Ether’s prices could easily cross above $3,000 after the hard fork, given it would bring a “more flexible and cheaper fee structure” to the Ethereum network, boosting adoption. The analyst told Cointelegraph:

“The hype buildup with respect to the forthcoming London hard fork is not reflective of the current price trend. […] Ethereum is currently seeing a retracement; it confirms that the sellers are deliberately lowering the price for a post-upgrade price pump.”https://twitter.com/intotheblock/status/1422147991650119686?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1422147991650119686%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2F3-reasons-why-ethereum-can-hit-3k-in-the-short-term-despite-overvaluation-risks

That bullish trio 

At least three on-chain indicators tracking Ether flows in and out of dedicated addresses foresee an extending upside setup.

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Spotted on CryptoQuant, the three metrics involved tracking Ether reserves across all exchanges and their outflow from trading platforms, as well as the volume of ETH tokens being deposited to Ethereum 2.0 smart contract.

The CryptoQuant data showed that the total Ether reserves on exchanges declined, indicating that fewer traders are interested in exchanging ETH for other assets. Meanwhile, the ETH outflow from those exchanges spiked, illustrating traders’ intention to hold their Ether around the London hard fork event.

Ether reserves and netflow from crypto exchanges. Source: CryptoQuant

Working together with the exchange data, the third on-chain indicator showed a surge in ETH deposits to its smart contract.

In detail, users can stake 32 ETH into Ethereum 2.0 smart contracts to become validators on its proof-of-stake blockchain. In doing so, they can expect to received rewards for batching transactions into a new Ethereum block or checking the work of other validators to keep the chain running securely.

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The number of unique 32 ETH depositors crosses 4,000. Source: CryptoQuant 

Analysts see the event as bullish because it removes the active Ether supply from circulation against a potentially rising demand.

“The increasing Ethereum 2.0 deposits show a big trust in the future potentials of the Ethereum blockchain, which stirs the scarcity of its native token Ether,” Waisman explained. “The situation may impact positively on the coin’s price.”

“With these positive fundamentals, a return back to the previous all-time high of $4,360 in the long term will be a mild ambition price target for Ether.”News Source

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Ethereum

Ethereum Price On the Brink of Breakout! $11.3k Target Could be Imminent!

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The global crypto space is making some serious moves over the last week with 10.8% profits reaching a $2.50 trillion market cap. However, Bitcoin’s dominance has risen by 0.66% taking BTC price level to the $62,000 milestone on 15th October 2021. 

Besides, its counterpart Ethereum with top-notch performance surpassed the $3,800 price level with 7.74% gains over the last week. The altcoin on the other hand is showing the potential signs to go hand in hand with Bitcoin.

Analyst Predicts Ethereum to Surge Beyond $11k! 

Popular crypto analyst Micheal Van de Poppe made an exciting prediction for the altcoin. He said ETH/USDT trading pair is retesting at a very crucial resistance between $3.8k to $4k, break out could give a rapid boost to the price action. He added altcoin is partially reflecting the footsteps of Bitcoin as it has previously done in 2017. Hence, according to the analyst, the asset could range between $6k and $8.7k in the upcoming bull run.  

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He went on to say if the digital coin closes major Fibonacci levels of 3.618 and 4.618 then the asset could take an upswing varying between $11.3k and $14k. Further, addressing Bitcoin’s recent bull rally, he manifested that if it continues to rally by 20% more, then Ethereum could follow and leg up by 10%. On the contrary, the analyst mentioned a strong support area for the altcoin between $2.9k and $3.3k

Ethereum Breaks Double Top Pattern!

The second-largest crypto-asset experienced a phenomenal increase in the weekly trade volume of 7.03%. At present, the altcoin is in a strong consolidation phase around $3,863. There seems to be a lack of FOMO as the selling pressure is pretty dominant. In a one-hour chart, there are a considerable number of red candles.

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If the buyers come forward showing interest in the asset then the asset is anticipated to surpass a major resistance level of $4,042. On the flip side, the asset could fall well below $4,000. A comfortable support zone for the asset could be between $3,500 and $4,000.

On the other hand, the total value in the ETH 2.0 deposit contract recorded an ATH of over $30 trillion. As the upgrade is programmed to launch any time soon. This could act as a major catalyst in the coming days. Hence, the altcoin has the strong potential to reach new highs.

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Top Analyst Predicts 200% Boom for Ethereum Over Bitcoin – But Issues Warning to Crypto Traders Considering Altcoin Markets

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A widely followed crypto analyst sees a volatile Q4 ahead for altcoins but thinks Ethereum will end the cycle with a massive run against Bitcoin.

Crypto strategist Michaël van de Poppe tells his 443,3000 Twitter followers that it is within the realm of possibilities for Ethereum to rally 200% against Bitcoin (ETH/BTC) in the coming months.

However, he warns that BTC may take over the markets at the expense of altcoins until December. According to the trader, December is historically is the month to buy digital assets other than Bitcoin.

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“December is often the best period to buy altcoins.

If history repeats, we might be getting a run of 200% on ETH/BTC towards the ATH (all-time high) region from there, but first, a heavier correction while Bitcoin does well.”

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Source: Van de Poppe/Twitter

Although Van de Poppe is short-term bearish on altcoins, he believes the digital assets will eventually follow Bitcoin’s lead.

Taking a closer look at Bitcoin, Van de Poppe plots the price action of the top crypto asset for the coming weeks.

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“We still are not seeing too much strength on the altcoin market. So, it’s still not the right time to be in them, and I’m assuming we’re still going to see strength on Bitcoin for the coming weeks in the scenario that I’ve made here in which a test of $70,000 is most likely going to take place within a month from now before we get a final corrective move, retest of the range [$59,405-$61,213] that we’ve been cracking through before we’re going to test a new all-time high region and going to finalize this entire bull cycle.”

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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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