A closely followed crypto strategist and trader is plotting the bottom targets for Ethereum (ETH) and two other altcoins as he believes the worst of the market pullback is over.
Credible tells his 241,400 Twitter followers that he’s looking at Ethereum to bottom out at a weekly support level.ADVERTISEMENT
“Almost to my target, looking for around $2,700 ETH.”
Another coin on the trader’s radar is the peer-to-peer payments network Hedera Hashgraph (HBAR).
The analyst says he’s looking at HBAR to bounce around its “main support” at $0.30.
“We had a 46% correction into HTF (high timeframe) support after breaking out of a seven-month consolidation. This is a HTF bullish retest until/unless this region is lost. This is also the most ideal place to be a buyer of HBAR.”
The crypto strategist is also keeping a close watch on Convex Finance (CVX), a decentralized finance protocol built on top of Curve Finance. Credible says he expects CVX to bounce at support around $7.00 and rally to a new all-time high.
“Went a little lower than I was expecting on this dip, but I would be VERY surprised if this was not our local bottom. CVX.”
As for Bitcoin (BTC), Credible believes that the leading cryptocurrency has already carved a local bottom at $40,000.
At the time of writing, Bitcoin is exchanging hands at $43,320, according to CoinGecko.
Vitalik Buterin proposes calldata limit per block to lower ETH gas costs
Ethereum co-founder Vitalik Buterin has proposed a new limit on the total transaction calldata in a block to decrease the overall transaction calldata gas cost over the ETH network.
Buterin’s post on the Ethereum Magicians forum, EIP-4488, highlights concerns regarding high transaction fees on layer-one blockchains for rollups and the considerable amount of time to implement and deploy data sharding:
“Hence, a short-term solution to further cut costs for rollups and to incentivize an ecosystem-wide transition to a rollup-centric Ethereum is desired.”
While the entrepreneur cited an alternative wherein the gas costs parameters could be decreased without further adding a limit to the block size, he foresees a security concern in decreasing the calldata gas cost from 16 to 3:
“[This] would increase the maximum block size to 10M bytes and push the Ethereum p2p networking layer to unprecedented levels of strain and risk breaking the network.”
Some think layer 2 fees on ETH are too high, because each byte of data a rollup uses cost 16 gas. To lower fees, the gas cost could be reduced to 3. This should be a large benefit, with 5x lower fees. However, in the long term, this may mean blocksize is a new network constraint pic.twitter.com/ffbTQ4zXOz— BitMEX Research (@BitMEXResearch) November 26, 2021
Buterin issued a decrease-cost-and-cap proposal, which aims to achieve the goal of reducing unprecedented levels of strain and risk breaking the network, and believes that “1.5 MB will be sufficient while preventing most of the security risk.” As for advice to the Ethereum community, he wrote:
“It’s worth rethinking the historical opposition to multi-dimensional resource limits and considering them as a pragmatic way to simultaneously achieve moderate scalability gains while retaining security.”
If accepted, the implementation of the proposal will require a scheduled network upgrade, resulting in a backward-incompatible gas repricing for the Ethereum ecosystem. This upgrade will also mean that miners will have to comply with a new rule that prevents the addition of new transactions into a block when the total calldata size reaches the maximum. “A worst-case scenario would be a theoretical long-run maximum of ~1,262,861 bytes per 12 sec slot, or ~3.0 TB per year,” the proposal read.
However, the community is discussing other options like the implementation of a soft limit. Others raised concerns about the congestion during nonfungible token (NFT) sales, which may require users to compensate for the lack of execution gas by paying a higher total fee.
Rising gas fees have resulted in an outflow of users from the Ethereum network to lower the cost of Ethereum Virtual Machine-compatible networks.
As Cointelegraph reported on Nov. 4, Etherscan data shows that approving a token to be transacted on Uniswap decentralized finance protocol can cost as much as $50 worth in Ether (ETH).
Additionally, layer-two solutions, which were billed as the protocols that would help solve the fee issue, have been charging high fees due to network congestion amid the onboarding of new users.
Ethereum price could easily double as ETH long term outlook screams bullish
- Ethereum price has formed a chart pattern on the weekly chart that indicates an optimistic outlook of a 97% ascent.
- ETH must clear a few critical resistances before the bullish forecast could be validated.
- Holding above $3,917 is crucial for the token’s rise toward $10,000.
Ethereum price continues to consolidate and discover reliable support above $4,000. ETH appears to be preparing for a massive bull run, as a technical pattern suggests that the second-largest cryptocurrency by market capitalization is looking to double its value in the longer term.
Ethereum price eyes $10,000
Ethereum price has printed a bull pennant pattern on the weekly chart, suggesting that ETH is eyeing higher prices. The prevailing chart pattern suggests that if the token slices above the upper boundary at $5,252, a 97% ascent toward $10,418 is on the radar.
ETH/USDT weekly chart
The first area of resistance for Ethereum price appears to be at $4,211, where the 50-day Simple Moving Average (SMA) and the 78.6% Fibonacci retracement level coincide. Additional resistance will emerge at the 21-day SMA at $4,421.
The token’s all-time high at $4,884 will then act as an additional obstacle for Ethereum price, but slicing above this level could unravel further bullish intentions for ETH.
If Ethereum price manages to break above the aforementioned resistances, ETH may target the last remaining obstacle before the bullish outlook is validated, at the upper boundary of the bull pennant at $5,252. The 97% climb toward $10,418 would then be on the radar, but the token would be confronted by several hurdles, including the 127.2% Fibonacci retracement level at $5,762, then at the 161.8% Fibonacci retracement level at $6,866.
ETH/USDT daily chart
However, if Ethereum price faces profit-taking, ETH would discover the first line of defense at the September 3 high at $4,020, then at the October 16 high at $3,962. The lower boundary of the governing technical pattern at $3,917, coinciding with the support line given by the Momentum Reversal Indicator (MRI).
Investors should note that if Ethereum price slices below the aforementioned foothold, the bullish thesis may be invalidated and ETH could continue to slide lower, as it searches for reliable support at the 100-day SMA at $3,762, then at the 61.8% Fibonacci retracement level at $3,675.
Raoul Pal Details Four Favorite Altcoins After Bitcoin and Ethereum, Outlines ‘Most Important’ Chart in Crypto
Real Vision founder and chief executive Raoul Pal is updating his followers on his favorite altcoins outside of Ethereum (ETH).
Pal, a vocal Ethereum bull, tells his 795,200 Twitter followers that ETH competitor and smart contract platform Solana (SOL) is one of his favorite altcoins. Solana’s native token SOL, the fifth-ranked crypto asset by market cap, is trading at $200.10 at time of writing, down nearly 7% on the day.
Pal also lists three other smart contract platforms, Avalanche (AVAX), Terra (LUNA) and Polkadot (DOT), among his favorite altcoins.
AVAX, the 11th-ranked crypto asset by market cap, is trading at $110.06 at time of writing, down nearly 9% on the day. In the same time period, LUNA is down 2.36%, trading at $41.81 at time of writing. DOT, the 9th-ranked crypto asset by market cap, is trading at $35.83 at time of writing, down 11.69% on the day.
Despite listing four smart contract platforms, Pal agrees with a theory laid out by Chris Dixon, a general partner at Andreessen Horowitz, stating that “ETH killers” are a myth.
Dixon believes demand for blockchains will outpace supply.
Another great thread by @cdixon 100% agree. The pie is getting bigger and slices may vary in size and will increase in number over time, but most are getting bigger too.. https://t.co/xRMau2aLbD— Raoul Pal (@RaoulGMI) November 21, 2021
Pal also thinks the Ethereum/Bitcoin (ETH/BTC) chart is currently the “most important chart” in the crypto markets.
“The ETH/BTC chart is in my opinion the most important chart in digital asset markets right now. A break higher will lead to more risk-seeking into year-end. BTC will go higher too.”
Ethereum is trading at $4,125.15, or about 0.076 BTC, at time of writing.