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Ethereum

Ethereum’s spot setup looks grim, but derivatives data tells a different story

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Ether (ETH) price fell below the $3,000 support on Sept. 20 as global markets entered a risk-aversion mode. The Invesco China Technology ETF (CQQQ) closed down 4.2%, while the SPDR S&P Metals and Mining ETF (XME) lost 3.8%.

Some analysts pointed to the potential ripple effects of the default of Evergrande, a major Chinese real estate company. In contrast, others blame the ongoing debates over the debt limit in Washington as the catalyst for this week’s volatility. As a result, the CBOE Volatility Index (VIX), usually referred to as the “stock market fear index,” jumped by more than 30% to reach its highest level since May.

On Sept.19, United States Treasury Secretary Janet Yellen called for Congress to raise the U.S. debt ceiling again in a Wall Street Journal op-ed. Yellen suggested that avoiding this would risk causing the government to default on payments and generate a “widespread economic catastrophe.”

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One of the major focuses for traditional markets is this week’s U.S. Federal Open Market Committee meeting, which ends on Sept. 22. At the meeting, the Federal Reserve is expected to signal when it will cut back its $120 billion monthly asset purchase program.

How these events impact Ether price

Ether price in USD at Bitstamp. Source: TradingView

Even though the $3,000 level sits near the bottom range of the previous performance of the past 45 days, Ether still accumulated 210% gains in 2021. The network’s adjusted total value locked (TVL) jumped from $13 billion in 2020 to $60 billion and the decentralized finance (DeFi), gaming and nonfungible token (NFT) sectors experienced an impressive surge while Ethereum maintained dominance of the sector’s market share.

Despite mean gas fees surpassing $20 in September, Ethereum has kept roughly 60% of the decentralized exchange (DEX) volume. Its largest competitor, Binance Smart Chain, held an average daily volume slightly below $1 billion, albeit having a transaction fee below $0.40.

Ether futures data shows pro traders are still bullish

Ether’s quarterly futures are the preferred instruments of whales and arbitrage desks due to their settlement date and the price difference from spot markets. However, the contract’s biggest advantage is the lack of a fluctuating funding rate.

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These fixed-month contracts usually trade at a slight premium to spot markets, indicating that sellers request more money to withhold settlement longer. Therefore, futures should trade at a 5% to 15% annualized premium in healthy markets. This situation is technically defined as “contango” and is not exclusive to crypto markets.

ETH futures 3-month annualized premium. Source: Laevitas

As displayed above, Ether’s futures contracts premium spiked to 15% on Sept. 6 as ETH price tested the $4,000 resistance. Apart from that brief overshot, the basis indicator ranged from 8% to 12% over the past month, considered healthy and bullish.

The crash to sub-$3,000 in the early hours of Sept. 21 was not enough to scare seasoned traders. More importantly, U.S. Securities and Exchange Commission chairman Gary Gensler’s interview on cryptocurrency regulation also had no noticeable impact on Ether price. Had there been a generalized fear, Ether futures premium would have reflected this.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Ethereum

Ethereum Weekly Forecast December 6 — 10, 2021

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Ethereum ETH/USD ends the trading week at 4394 and continues to move as part of the correction and the bullish channel. Moving averages indicate a bullish trend for ETH/USD. Prices went up from the area between the signal lines, which indicates pressure from cryptocurrency buyers and a potential continuation of growth from the current levels. At the moment, we should expect an attempt to develop a price correction and a test of the support level near the 3905 area. Where can we expect a rebound and a continuation of the rise in the rate and value of Ethereum with a potential target above the level of 5255.

Ethereum Weekly Forecast December 6 — 10, 2021

An additional signal in favor of raising the ETH/USD quotes in the current trading week on December 6 — 10, 2021 will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the “Triangle” pattern. Cancellation of the growth option for the cryptocurrency value in the current trading week will be a fall and a breakdown of the level of 3205. This will indicate a breakdown of the support area and a continued fall in ETH/USD quotes with a potential target below the level of 2605. Confirmation of the rise in the Ethereum cryptocurrency will be a breakdown of the resistance area and closing of quotes above the level of 4755.

Ethereum Weekly Forecast December 6 — 10, 2021

Ethereum Weekly Forecast December 6 — 10, 2021 assumes an attempt to reduce and test the support area near the level of 3905. Where can we expect a rebound and continued growth of the cryptocurrency to the area above the level of 5255. An additional signal in favor of the rise in the Ethereum rate will be a test of the trend line on the indicator relative strength. Cancellation of the growth option will be a fall and a breakdown of the area of ​​3205. In this case, we should expect a continuation of the decline with a target below the area of ​​2605.

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ETH, BUSD, and MANA Market Activity Dominates Crypto Space

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  • Top 10 crypto assets with a solid performance in the market.
  • Altcoins surge market positions.

The crypto world is now back on its feet and shows no sign of slowing down. In fact, many altcoins are currently surging their position right now in the market. The performance of these crypto-assets contributes a lot to the recent uptrend position of the space.

These made LunarCrush Social Intelligence for Crypto, an organization that gathers crypto information, react in a tweet post:

In the tweet post, LunarCrush Social Intelligence for Crypto provides the top 10 crypto assets that are doing a solid performance in the market. This solid performance includes the social and market activity of the virtual assets. The cryptos that are listed in the top ten list include Ethereum, Decentraland, and Binance USD, to name a few.

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In terms of the latest trend in the crypto industry, the metaverse remains to be one of the most talked-about topics. Decentraland is one of the crypto assets that integrated its blockchain with metaverse technology. Through this, the activity in the Decentraland network keeps increasing along with the mass adoption of its tokens.

On the other hand, the king of crypto assets, Bitcoin, remains the favorite crypto of investors worldwide. As a result, Bitcoin keeps its position as the number one crypto in the market, with a huge market cap of almost $1 trillion.

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Ethereum out performs Bitcoin, ETH regains the majority its flash-crash losses

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  • Ethereum price, like the broader cryptocurrency market, suffered a massive flash-crash during the early midnight trading on Saturday.
  • 17% losses at one point were measured.
  • Throughout the remainder of Saturday, buying pressure wiped out nearly all of the overnight losses.

Ethereum price performance on Saturday has been nothing short of spectacular. Considering that most of the altcoin market is down fifteen to twenty percent, Ethereum’s daily close of down only 4% is a testament to its strength.

Ethereum price regains nearly all of its flash-crash loss, handily outperforming the broader market

Ethereum price experienced one of the fastest and deepest flash-crashes since May. The timing of the collapse couldn’t have been more perfect: midnight Eastern Standard Time (New York). Bears could push Etheruem to the $3,503 price level before a bullish reversal occurred.

The two primary support levels holding Ethereum price up are Senkou Span B at $3,700 and the third-highest volume node in the 2021 Volume Profile at $3,410. While highly bullish in the short-term, indecision remains and downside risks.

Despite the massive recovery, Ethereum price remains inside the daily Cloud – an area rife with indecision, volatility, and whipsaws. The Cloud is the place where trading accounts go to die. Etheruem needs a daily close at or above the $4,650 price level to convert to a full-blown bull market.

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Ethereum price is tilted more bearish here, especially with the Chikou Span below the candlesticks and in open space. Adding to the bearish outlook is the bear flag breakout on the Relative Strength Index. However, the final oversold level at 40 in the Relative Strength Index might yield some support.

ETH/USD Daily Ichimoku Chart

The threshold that bears need to achieve to convert Ethereum price into a bear market is a much more manageable price range than converting to a bull market. For example, whereas Ethereum needs a 15% move above $4,000 to convert into a bull market, short-sellers only need a 7% move below $4,000 to convert Ethereum into a bear market.

Any daily close at or below $3,700 would position Ethereum below the Cloud and into bear market territory.

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