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Ethereum

Ethereum eyes $6.5K bullish target as ETH price chart paints ‘cup and handle’

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Ethereum blockchain’s native asset, Ether (ETH), faces the prospect of exploding toward $6,500 in the coming sessions.

The bullish analogy takes cues from a textbook technical pattern dubbed “cup and handle.” In detail, a cup and handle structure develops after the price first rallies significantly to the upside and then corrects to carve out a rounding bottom, called the “cup.”

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The move follows a rebound toward the prior high and a failed breakout attempt above the said level. As a result, the price pulls back once again and grinds out a smaller rounding bottom, called the “handle.”

Ultimately, the price returns to a prior high for the second time and breaks out successfully, resulting in a move equal to the cup’s depth.

So, it seems the ETH/USD exchange rate has painted a cup and is now forming a handle, as is shown in the chart below.

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ETH/USD daily chart featuring cup and handle formation. Source: TradingView

The depth of the ETH/USD’s cup is nearly $2,437. As a result, should the pair retest $4,112 resistance for a bullish breakout move, its prospect of rising by as much as $2,437 will increase. In doing so, Ether would eye a run-up toward $6,549.

A Harvard study shows that cup-and-handle patterns have a 65% and 68% success rate in forex and stock markets, respectively, on daily timeframe charts.

Institutional FOMO on

Ether’s upside analogy appears against the backdrop of growing institutional interest.

In a report published on Sept. 7, Standard Chartered, a multinational banking giant headquartered in London, discussed Ether’s economic use case, adding that the cost to purchase 1 ETH could grow to $26,000–$35,000 in the future.

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“The current transition to ETH 2.0 could transform ETH by increasing its functionality and scalability and reducing environmental concerns, although it could raise more complex security issues,” the report stated.

“Timelines for ETH 2.0 rollout could slip, but in the near term, decreasing net supply — as ETH is staked for ETH 2.0 — should provide price cushion.”

In an interview with CNBC, Cathie Wood, CEO of Ark Invest, said that her firm would split its crypto investments into 60% Bitcoin and 40% Ether. The former AllianceBernstein executive envisioned a higher demand for ETH tokens in the wake of ongoing growth in Ethereum-backed decentralized finance (DeFi) and nonfungible token (NFT) craze.

I’m fascinated with what’s going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does not appreciate right now,” Wood told CNBC anchor Andrew Ross Sorkin at the SALT 2021 conference in New York.
“Our confidence in Ethereum has gone up dramatically as we’ve seen the beginning of this transition from proof-of-work to proof-of-stake.”
Rivalry risks
Meanwhile, Ethereum also faced criticism for its inability to resolve higher transaction fees and network congestion issues. That prompted emerging layer-one blockchain rivals, such as Solana, Avalanche and Cardano, to eat up a portion of Ethereum’s market hegemony.
It will take Ethereum another two years to become a fully functional proof-of-stake protocol, per its official roadmap. The transition consists of a three-step process. In the first, Ethereum has implemented the Beacon Chain to introduce staking on a separate layer.
The next step, scheduled sometime later in 2021, will see Ethereum’s original chain merger with the Beacon Chain. Meanwhile, Ethereum will introduce “shard chains” that expect to enable Ethereum to process more transactions in the final phase.

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Ethereum

Will Smith’s Son, Rapper and Actor Jaden Smith, Posts Mysterious “ETH” Tweet

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Jaden Smith joins the crypto-celebrity list with two tweets in a row

The “Icon” author, rapper, Hollywood actor and mega-star, Will Smith’s son Jaden Smith, has posted a mysterious “ETH” tweet that followed a “Web3” publication shortly after.

The purpose behind the two tweets has not been disclosed, but it is most likely tied to the rising popularity of the two industries. Previously, Ethereum’s price has reached the new ATH, which might have caught the famous rapper’s attention.

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Both crypto-related tweets have been warmly welcomed by the audience, collecting approximately 8,000 likes and more than 1,000 retweets on Twitter. In the comment section of the Web3 tweet, Jaden said that he actually owns an NFT just like his industry partner Snoop Dog.

With the rapid price increase of the Bitcoin, DeFi and NFT industries, more celebrities are exploring cryptocurrencies and blockchain technologies. In addition to giving significant investment returns, digital assets technologies may potentially change the banking, finance and art industries in the future.

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Ripple

Ripple CEO Says the SEC Helped Ethereum to Surpass XRP as No.2 Crypto

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  • Ripple CEO aired his opinion on the crypto market and regulations.
  • Brad Garlinghouse said the US SEC granted Ethereum regulatory green light.

At the DC Fintech Week virtual conference on October 21, Ripple CEO Brad Garlinghounse aired his thoughts on the state of the crypto market and regulations. Besides, he holds a grudge over the financial regulator’s approach to Ethereum.

In addition, Garlinghouse declared that the US Security and Exchange Commission (SEC) granted Ethereum regulatory green light that enabled it to surpass his firm’s XRP token.

Likewise, the Ripple boss feels that his firm has been played out. But, at the same time, Ethereum’s subsequent success is at least in part down to more favorable treatment by the US SEC. Also, Garlinghouse stated that it is affecting its market. He said,

“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has exploded, and that clarity has helped.”

To clarify, XRP was the second-largest crypto asset by market cap in late December 2017. But, currently, it has dropped to seventh place while Ethereum has kept the second spot ever since.

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Furthermore, the reason why XRP dropped is the US SEC pursuing Ripple over claims that XRP is unregistered security. In fact, in January, Ripple filed a Freedom of Information Act request with the US SEC demanding to know why it didn’t consider ETH security.

As a result, later in July, a district judge allowed the firm to depose a former official who declared in 2018 that ETH was not a security.

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Ripple CEO reinstates SEC bias towards ETH, claiming XRP could’ve been No.2

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It is not news that the ongoing XRP lawsuit has got the better of Ripple’s XRP token. Ripple CEO, Brad Garlinghouse recently questioned the SEC’s bias towards Ethereum, claiming that XRP would’ve been at the No. 2 position instead of ETH if it weren’t for the commission’s partial crackdown. Garlinghouse spoke at the DC Fintech Week virtual conference yesterday, arguing that the U.S. Securities and Exchange Commission alleged Ripple’s XRP as unregistered security while granting Ethereum a regulatory free pass, which in turn helped ETH shoot through the roof.

“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has kind of exploded and that clarity has helped.”

XRP secured the position of the second-largest crypto asset by market capitalization during the latter half of 2017. However, the token has dropped down to seventh place while Ethereum stands strong as No. 2. Furthermore, Garlinghouse claims that the SEC’s exclusively aggressive anti-crypto stance to allegedly protect the consumers is in fact anti-investors. Referring to the XRP lawsuit, Ripple CEO emphasizes that “nearly 50,000 U.S. people who hold XRP who are trying to sue the SEC for ‘protecting them’”.

XRP Holders left with bearish and frozen funds

Earlier this week, Attorney Deaton Filed a Letter Motion on behalf of the XRP Holders (Movants) that contended SEC’s extension request, with the main argument concerning the XRP holders’ frozen funds because of the consistent postponement of the lawsuit’s final verdict. During the ongoing bull run, XRP remains considerably bear because of the regulatory crackdown on Ripple. However, the court has overlooked the community’s concern and granted the extension explaining that in lieu of pending motions, extra time will only facilitate both parties to complete pending fact discovery and thoroughly prepare for upcoming expert depositions.

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“The lack of liquidity within the United States, coupled with the mass de-listings prevents XRP Holders from trading, selling, transferring, or converting their XRP. It is because of this de facto in place seizure of their property that XRP Holders took the extraordinary step to seek intervention as defendants… Any delay in the underlying action marks yet another day XRP Holders do not have access to their funds.”, wrote Deaton.

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