Ethereum [ETH] appears to lack a clear direction after sustaining over 5% losses as the weekend blue approaches. An imminent breakout could be in the cards as the network activity of the largest altcoin exploded. But there’s more to the big picture.
Cheering the Ethereum outflow
The supply of Ethereum on centralized cryptocurrency exchanges has taken a massive slump. To put things into perspective, over $1 billion worth of ETH has been removed from these platforms in the past 24 hours. The shrinking reserves of the token drove speculation of an upcoming breakout as figures plummeted to a three-year low.
Historically, a surge in this metric has paved the way for a bullish breakout in ETH’s price.
“The net amount of $ETH leaving exchanges just hit a new record. Over $1.2B worth of $ETH left centralized exchanges yesterday. Last time $1B+ left CEXs, #Ethereum increased by 60% within 30 days.”
Even though crypto exchange outflows are typically considered a bullish sentiment due to the fact that they represent a reduction in the coins available for sale in the market, it does not provide a conclusive direction. Hence, deducing a rally strictly on the basis of this indicator might be tricky.
The latest outflow could also be just the exchange’s internal transfer and not necessarily represent a withdrawal by investors. But IntoTheBlock revealed that the above analysis was not just crypto platforms shuffling to their new wallets. It said,
“Our machine learning algorithms classify new wallets being created by exchanges based on their transaction behavior.”
In addition to that, other hints of renewed bullish pressure cannot be ignored. For instance, Ethereum saw a spike of 31% in the number of unique addresses interacting on the network in less than a week which further indicated that the crypto-asset is primed for another leg up.
The short-term picture
Volatility in the Ether market exhibited a decline. The trading volume also followed suit. But the moving averages aligned with the bullish narrative despite the slump in the asset’s price action.
Over the past week, Ethereum’s price oscillated within a parallel channel and retraced certain highs and lows. On the upside, the asset broke out successfully above the upper trendline enabling ETH to move above the $3,550 mark for the first time since the flash crash earlier this month.
But the recent u-turn by the Ether may prove damaging if it does not bounce back. If this is a fake-out, then the price could fall back in. The red closing bars of Awesome Oscillator [AO] did not depict encouraging signs. The MACD also flashed red. But the Relative Strength Index [RSI] exhibited signs of recovery after bouncing from a low of 36-level, which, in turn, could catalyze a rally.
ETH should hold its ground above $3,600 to target $3,769 and $3,930 price levels, respectively. But from the above chart, the crypto-asset’s previous breakout lacked the conviction to sustain itself as price dipped. Hence, Ethereum might not be ready to continue its upward journey just yet.
Ethereum Challenger Terra Becomes Third-Largest Blockchain by Total Value Locked, Surpassing Solana and Avalanche
Decentralized finance (DeFi) platform Terra (LUNA) has surpassed its rival blockchains to become the third-largest crypto by total value locked (TVL).
Crypto market intelligence firm Delphi Digital says that the Ethereum competitor has now overtaken Solana (SOL) and Avalanche (AVAX) in terms of TVL primarily due to value growth in Bonded Luna (bLuna), which is the token used by liquid staking protocol Lido as collateral to borrow stablecoin TerraUSD (UST) within the Anchor protocol.
“TVL on Terra network overtook Avalanche and Solana, making it [the] third-largest blockchain by TVL after Ethereum (ETH) and Binance Smart Chain (BSC).
It’s important to note that TVL numbers are highly reflective alongside native token prices as they are commonly used as collateral in DeFi and as base pairs for DEXes. In Terra’s case, DEX base pairs usually utilize Tether instead of LUNA, therefore this growth in TVL is primarily contributed by value growth in Lido bLuna.”
The TVL of a DeFi platform is the total value held within its smart contracts. It is calculated by multiplying the amount of funds locked into the network as collateral by the current price of the assets.
Delphi Digital points to how LUNA’s rise has helped Terra’s stablecoin UST increase its overall supply by 4 billion tokens due to a proposal to mint UST on the Terra network.
“The increase in UST Supply from under $3 billion to $7 billion across mid-November was due to this proposal to mint UST with LUNA in the community pool to grow the Terra ecosystem through UST usage.
UST did another ~$1 billion of growth in circulating supply after 19th November.”
LUNA is exchanging hands at $70.85 as of writing, an 46% increase from its 30-day low of $38.06.
Fourth-Largest Ethereum Whale Pounces on Large-Cap Altcoin, Accumulating $580,000,000 in Crypto
One mega-whale just loaded up on an Ethereum (ETH) token that powers a popular crypto marketplace.
The blockchain-transaction tracker WhaleStats reveals that the unnamed wallet received 14,000,000 FTT, the native token of the FTX exchange. The transaction was worth $581,444,018 at time of sending.
The whale now holds over $1.2 billion worth of FTT with a total value exceeding $3.8 billion and is now ranked fourth on the WhaleStats’ list of the top 1000 Ethereum wallets, excluding the ETH cryptocurrency itself.
Popular crypto analyst Smart Contracter is also showing interest in FTT, noting that the Fibonacci ABC spacing between sharp highs and lows on the coin’s historical chart offers encouraging signs for future price action.
The trader says in a tweet to his 196,000 followers,
“Been a long while since I played FTT but I actually think a major bottom is in and we go to [all-time highs] from here.
Perfect ABC on super-high timeframes where ABC came below the 0.618 and bull/bear periods are almost 1:1 extension.”
In late October news broke that FTX had purchased advertising airtime during the February 2022 Super Bowl as part of a wider push to bring crypto awareness to the mainstream.
Last week FTX also announced the launch of a marketplace for Ethereum-based non-fungible tokens (NFTs).
At time of writing, the FTT token is mostly flat on the day and trading at $42.73.
Top Trader Says Ethereum Looks Exceptionally Bullish, Unveils Targets for Bitcoin and Explosive Altcoin Terra
A popular crypto analyst believes Ethereum (ETH), Bitcoin (BTC) and one altcoin are about to blast off and leave the recent market-wide slump in the dust.
The pseudonymous crypto strategist and trader Kaleo tells his 454,000 Twitter followers that ETH’s time to shine has arrived as the “king” of the layer-1 blockchain protocols.
The analyst says,
“ETH is so bullish after the most recent flush it’s not even funny.
We’ve seen a major rotation play among the alt [Layer-1s] the past few months.
It only makes sense that the king of the L1s finally has a chance to suck liquidity from the rest of the market and have a run of its own.”
Ethereum is about even on the day, trading for $4,346 at time of writing.
Kaleo next looks at Bitcoin and says he still believes the top crypto will reach at least $100,000 during the current cycle.
“I’ve said it before and I’ll say it again – I still expect to see Bitcoin have a parabolic move to top out at $100K+ this cycle.
I’ll gladly start scaling out around $150K. I expect it to go higher, but I’m not concerned with nailing the top. Until then, just keep stacking.”
BTC currently sits at $50,900 after having battled back from a flash-crash low around the $43,500 level on December 3rd.
Lastly, the crypto analyst lays out his price prediction for the Terra (LUNA) protocol, whose native token LUNA underpins a suite of decentralized stablecoins.
Kaleo tells his followers that Terra reaching the $100 threshold is inevitable.
“LUNA going to $100 from here is only a matter of time.”
LUNA has seen some wild price action in recent days, with the altcoin tumbling from $69.66 to $53.64 late last week before surging to $77.37 on Sunday.
The 10th-ranked crypto has since corrected but is back up 5% on the day to $70.74.