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Ethereum

Ethereum price poised for 40% rally vs. Bitcoin after breaking out of four-month range

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Ethereum‘s native token, Ether (ETH), has the prospect of logging a 40% price rally against its top rival, Bitcoin (BTC), per a classic technical pattern.

Dubbed a “symmetrical triangle,” the structure develops after the price forms a series of higher lows and lower highs. Doing so results in a convergence of two trendlines with a degree of symmetry, which appears a a triangle.

Analysts treat symmetrical triangles as trend continuation indicators — i.e., they usually send prices in the direction of their previous trend following a clear breakout. As a result, the ongoing ETH/BTC price boom could undergo an upside continuation after having fluctuated inside a similar triangle structure over the last four months.

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ETH/BTC weekly chart featuring a symmetrical triangle setup. Source: TradingView

Part of the reason is Ether’s attempt to break above its triangle consolidation setup after rising seven weeks in a row, for a total growth of 179%. If it does, the ETH/BTC exchange rate could rise by as much as the triangle’s maximum height (approximately 0.025 BTC) from the point of its breakout (approximately 0.069 BTC).

That puts the pair’s profit target near 0.094 BTC, about 40% above 0.069 BTC.

Ether’s outperformance 

Ether’s bullish outlook against Bitcoin is emerging as it outperforms the benchmark cryptocurrency in dollar terms on an intraday basis.

On Aug. 31, the ETH/USD exchange rate rose 6.61% to $3,442, its highest level in three months. Comparatively, Bitcoin posted dwarfed gains, rising only 2.5% to $48,169, revealing a higher interim demand for Ether tokens among traders.

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ETH/USD vs. BTC/USD daily chart. Source: TradingView

Dmitry Mishunin, founder and CEO of smart contract audit firm HashEx, predicted Ethereum and similar “smart contract-enabling blockchains” to keep outperforming Bitcoin in the long run, citing their superior utility.

“The duo of Cardano and Ethereum has the propensity to harbor countless innovative projects,” Mishunin said, adding that Ethereum has the potential to flip Bitcoin in the long run.

“Bitcoin only relies on its capped supply and the first-mover advantage, a trend many investors are beginning to substitute for unique technology that can drive a blockchain-dominated future.”

Jon Ovadia, founder and CEO of crypto exchange Ovex, also said that Ethereum has better fundamentals than Bitcoin at this moment, largely due to its recent network update that aimed to add deflationary pressure to Ether through a fee-burning mechanism.

“Thus far, about 146,878.7 ETH (worth approximately $492.3 million) have been burnt from the total circulating supply,” Ovadia said, adding that:

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“The potential for a more superior Proof-of-Stake infrastructure through the highly anticipated launch of Ethereum 2.0 will also make the blockchain more usable, thus driving the coin’s utility and its price growth.”

Bitcoin’s outlook, meanwhile

Thus far in 2021, Ether has grossly outperformed Bitcoin due to its incremental adoption in the booming decentralized finance (DeFi) and nonfungible token (NFT) industries. As it stands on Aug. 31, the year-to-date profits for Ether are 373% versus Bitcoin’s 63.55%.

Nevertheless, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said Bitcoin would eventually catch up to Ether’s gains, thus leading to $100,000 by the end of 2021 — more than double the price at which it is trading at the time of writing.

Fundstrat Global Advisors’ Tom Lee also envisions a six-figure bid for Bitcoin as long as it stays above its average price of the last 200 days — a long-term momentum measure.

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Rich Dad Poor Dad Author Issues Dire Warning on Inflation, Says He’s Buying Bitcoin, Ethereum and Two Additional Assets

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Rich Dad Poor Dad author Robert Kiyosaki is concerned that working-class Americans will be wiped out by rising inflation unless they invest in several key assets.

In a YouTube video on The Rich Dad Channel, the widely known author says that true capitalism has been abandoned, and the government instead intervenes on behalf of banks.

“The reason they’re talking about inflation or deflation is because, way back when, in the 70s, a true capitalist would let a business fail. According to [Austrian political economist Joseph] Schumpeter, capitalism destroys inefficient companies.

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If you look at one example, not too long ago there was Blockbuster Video. Then Netflix came along and they’re toast. They’re just gone. A true capitalist wipes out the inefficient or the obsolete.

But for the last so many years, since 1907 really, they’ve been saving the banks. The banks are so corrupt, and the reason the Federal Reserve had to come in was to protect the rich bankers.

And what they did was, back in 2008 there was quantitative easing, which is a very complex subject, but basically the Fed just prints money and gives it to banks to prevent them from failing. That’s not capitalism, that’s Marxism. That’s socialism, that’s communism. It’s called central banks.”

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Kiyosaki warns that unlimited money printing as part of official government policy will eliminate the working class.

“The reason inflation is going to wipe out people is because the average person is a consumer. Everybody talks about, ‘T-bone steak [costs] this now, and gasoline’s this and toilet paper is that.’

That’s because… Everything’s to protect the bankers. And that’s why I feel for the working-class people. I think it’s criminal that our school system is part of Marxism. There’s no financial education in the schools and it’s not a mistake.

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To the people who are complaining about inflation, just know it’s because the Federal Reserve Bank, the U.S. Treasury… they’re as corrupt as they come.”

The author tells his 1.8 million followers on Twitter that the recent 25% price increase at discount retail chain Dollar General is a bellwether event signaling that investors should protect themselves by picking up some cryptos like Bitcoin (BTC) and Ethereum (ETH), as well as gold and silver.

“Dollar Tree becomes $1.25 Tree. Inflation is a tax on the poor and middle class. Inflation makes the rich richer.

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Get smart. Get richer. I am buying more gold, silver, Bitcoin, Ethereum, rental real estate, and oil. What are you buying?”

CNN Business reported this week that Dollar Tree cited rising inflation and the ongoing supply chain crisis as reasons why it planned to permanently abandon its longstanding $1 price point on all products.

At time of writing, Bitcoin is valued at $55,190, Ethereum is exchanging hands for $4,367, gold is going for $1,781, and silver is worth $22.44. Kiyosaki also issued a warning in September that a major stock market crash would occur in October of this year.

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Ethereum is a better store of value than Bitcoin, academic research shows

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  • Recent research conducted by four Australian researchers concludes that Ethereum is a better store of value than Bitcoin.
  • “Ethereum provides better inflationary hedging properties than Bitcoin, and Ether may therefore offer superior long-term value storage than Bitcoin, ” said the report.

Ethereum, the second-largest crypto by market cap, has been tipped by several experts including billionaire investor Mark Cuban, as second to none in terms of utility. Its smart contract has been used to power several blockchain-based projects like Decentralized Finance (DeFi), and Non-Fungible Tokens (NFTs). But in terms of a store of value, there has been a divided opinion among experts as Bitcoin is largely viewed as a better alternative to Ethereum and other cryptocurrencies.

Recent research conducted by four Australian researchers concludes that Ethereum is a better store of value than Bitcoin. According to the research paper, the recent EIP-1559 upgrade in August has been the reason for this conclusion. The EIP-1559 upgrade saw over one million ETH out of the 118,583,580 circulating supply burnt, and a portion of its transaction fees burnt as well.

The report stated: 

Annualizing the rate of Ethereum creation since EIP-1559, the expected increase in the total Ethereum supply is only 0.98%, being less than half the 1.99% increase in Bitcoin supply which is almost certain in the same period.

Roughly 50 percent of the transaction fees of the 12,000 newly minted ETH per day were burnt according to the report. It was further stated that more ETH will be burnt as its robust ecosystem of decentralized finance sees increased demand. 

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If Bitcoin is “sound money”, Ethereum is ” Ultra-sound money”

The rampant money printing linked to the COVID-19 pandemic has recently led to higher inflation rising to 6.2 percent in the US by October. Bitcoin has during this period seen higher interest among institutional investors as it is believed to be a perfect hedge against inflation. However, the research states that ETH has a better store of value, and institutions are beginning to choose digital asset for this purpose.  

Ethereum provides better inflationary hedging properties than Bitcoin, and Ether may therefore offer a superior long-term value storage than Bitcoin.

According to Shark Tank investor and now an ambassador for FTX exchange Kevin O’Leary, if Bitcoin is considered as a “Sound Money”, then Ethereum is “UltraSound Money”. 

If Bitcoin is sound money because of the 21 million coin supply ceiling, Ethereum enjoys the same benefit now. It’s ultra sound money because there’s no supply floor […]. Ethereum will be thought of like a traditional business and can be analyzed like one, sort of like using a cash flow model

Nikhil Shamapant, an independent ETH analyst, trader and medical doctor from New York City. He believes that ETH will be inflationary as it will spend most of its movement in the medium term in the inflationary environment. 

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Ethereum Breaks New Record Amid 13% Rally, Options OI Reaches $7 Billion

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Ethereum breaks another market prior to end-of-year rally

Ethereum options hit a new all-time high as Ethereum continues to move in the local bullish rally started at the end of November, Wu Blockchain reports.

Contracts open interest spikes

Ethereum options currently remain at the historical peak in open interest that is currently staying at $7 billion. On Dec. 31, almost 700,000 options are going to be delivered with a “bullish” Put/Call ratio of 0.47. The approximate max pain price is $2,500 for the currently open Ethereum contract with expiry on Dec. 31.

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Increased options open interest closer to the end of the year is not something new for Ethereum. Ethereum open interest usually spikes near the end of the year as volatility on the cryptocurrency market increases and traders tend to hedge their positions.

What does high open interest tell traders?

Usually, options are utilized as a reflection of current market conditions. Since Ethereum is moving in both short and long-term bullish trends, call (buy) options are prevailing on the market with the majority of traders betting on the asset’s price spike to $5,000.

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But while some traders may use options for speculative trading, others utilize them for hedging their positions. By opening put options on values like $4,300, traders hedge their positions in cases of unexpected market volatility.

Ethereum’s previous ATH currently remains at $4,880, and more analysts are expecting the second-largest cryptocurrency on the market to reach the long-awaited milestone by the end of the year when most altcoins have historically reached new highs.

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