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Ethereum

Ethereum Takes a Pause, as Bitcoin In Spotlight

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Ethereum (ETH) – the second-most valuable cryptoasset by market capitalization – has lagged behind bitcoin (BTC) in price recently. And judging from some metrics, it seems that Ethereum users are also looking elsewhere for their on-chain activities.

Over the past 30 days, the price of Ethereum’s native ETH token has risen 6% to USD 3,457 at 13:19 UTC.

The monthly gain compares to a stronger 30-day rise of 27% for BTC, which has brought the price of the number one cryptocurrency above USD 57,000, and within a relatively short distance (it’s still down by 11%) of its all-time high of just over USD 64,000.

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ETH, meanwhile, is still down around 21% from its all-time high of over USD 4,300, reached in May, with significant technical resistance around the USD 4,000 mark still standing in the way.

However, ETH still outperforms BTC on a larger time frame as it’s up by more than 800% in a year, while bitcoin jumped by “only” 400%. 

ETH price chart:

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Source: coingecko.com

In either case, the relatively lower prices for ETH this month follow a warning last month from Nikolaos Panigirtzoglou, a global market strategist at investment bank JP Morgan, who said in September that ETH’s “fair value,” in his view, is only around USD 1,500 based on network fundamentals.

“We look at the hashrate and the number of unique addresses to try to understand the value for ethereum. We’re struggling to go above USD 1,500,” Panigirtzoglou was quoted by Insider as saying at the time.

And while the price has been lagging bitcoin recently, usage of the Ethereum network also seems to have gone down. According to data from BitInfoCharts, the number of active addresses on Ethereum has dropped from more than 1.05m addresses during the market peak in May this year, to a little over 800,000 addresses as of today. Although a similar drop in activity can also be seen on the Bitcoin network, Bitcoin has seen a stronger rise since July than Ethereum.

Source: Bitinfocharts.com

Meanwhile, the network’s “buzz” factor in social media also appears to be weakening. Looking at the number of tweets mentioning Ethereum that are published each day, data from BitInfoCharts shows that we are close to the lowest levels from the past 6 months.

Source: bitinfocharts.com

Comparing this to bitcoin, a difference becomes evident over the past few weeks in particular, with the number of tweets mentioning bitcoin rising so far in October, while ethereum mentions have fallen.

Meanwhile, the interest on Google is also seemingly trending down:

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Source: trends.google.com

Another important metric for a smart contract platform like Ethereum, is the total value locked (TVL) on the platform. In US terms, since July, TVL jumped by more than 60%, meanwhile, in ETH terms – by only 5%. 

Source: defillama.com

Meanwhile, the major investors-backed, competing blockchain network, Solana (SOL), for instance, has seen an exponential rise in value locked on this platform since the summer, rising from just USD 631m on July 1 to USD 11.45bn as of today. In SOL terms, since July, TVL increased by almost 340%.

Source: defillama.com

However, from a price perspective though, some signs also point in a positive direction for ETH, with for instance on-chain researcher Santiment saying today that ETH continues to move from exchanges to “non-exchange” addresses.

“The ratio between the two has shown evidence of being tied closely to price, and this rise in ratio continues to be a good sign for bulls,” the analytics firm said, sharing a screenshot that shows how tokens are moving to “non-exchange whales.”

Source: Santiment

Meanwhile, as reported yesterday, digital asset investment products saw inflows totaling USD 226m, bringing the 8 week run of inflows to USD 638m, per CoinShares data. Investments in BTC hit USD 255m, compared with USD 69m a week earlier, while ETH saw outflows totaling almost USD 14m, compared with USD 20m inflows a week earlier. At the same time, SOL saw USD 12.5m worth of inflows. 

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Solana

Here’s What’s Next for Ethereum, Solana and Elrond, According to Crypto Trader Michaël van de Poppe

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Crypto analyst and trader Michaël van de Poppe is plotting the potential path ahead for smart contract platforms Ethereum and Solana, as well as internet-scale blockchain Elrond.

In a new strategy session, Van de Poppe tells his 135,000 YouTube subscribers that he expects Ethereum (ETH) to respect its immediate resistance at $3,900 one more time before finally breaking out.

“At this stage, we’re facing resistance for the third time assuming that we might be getting a rally like this (move to $4,000) before we correct a little bit and continue running after the corrective move has taken place on Bitcoin and ETH. In that case, probably around $4,000 we can still hit.”

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Source: Van de Poppe/Twitter

Looking at Solana (SOL), the crypto strategist expects the seventh-largest crypto asset to continue its correction before it could restart its uptrend and print a new all-time high at $240.

“At this stage, jumping into Solana is quite tricky, to be honest. If you’re looking at the price action, you want to look at support levels to jump into. So you’re looking at those ranges ($122, $97 and $78) to potentially build your position towards the next run as the assumption is that we most likely are going to get run over it in the next phase of this bull cycle.”

The last coin on the trader’s radar is Elrond against Bitcoin (EGLD/BTC), which he says is poised to print a higher low at its current trading value of 0.0036 BTC, worth $222.87.

“First point of interest hit on EGLD.”

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Image
Source: Van de Poppe/Twitter

According to the trader’s chart, the EGLD/BTC looks ready to ignite a rally to a new all-time at 0.007 BTC ($433.36), marking a potential upside of over 94% from current prices.

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Ethereum

Ethereum Forecast and ETH/USD Analysis October 19, 2021

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Ethereum are trading at 3808 and continue to move as part of the rise and the downtrend channel. The capitalization of the Ethereum cryptocurrency at the time of the publication of the forecast is $ 449,369,451,688. Moving averages indicate a short-term bullish trend for Ethereum. Prices are again testing the area between the signal lines, which indicates pressure from buyers and a potential continuation of the rise in the asset value from the current levels. At the moment, we should expect an attempt to develop a correction in the value of the coin and a test of the resistance level near the area of ​​3655. Where can we expect a rebound and a continuation of the rise in the Ethereum rate with a potential target above 4505.

Ethereum Forecast and ETH/USD Analysis October 19, 2021

An additional signal in favor of the growth of ETH/USD quotes will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the option to raise the cryptocurrency will be a fall and a breakdown of the level of 3325. This will indicate a breakdown of the support area and a continued fall in ETH/USD quotes below 2805. With the breakdown of the resistance area and closing of quotes above the level of 4055, we should expect confirmation of the development of a bullish movement in Ethereum.

Ethereum Forecast and ETH/USD Analysis October 19, 2021

Ethereum Forecast and ETH/USD Analysis October 19, 2021 suggests an attempt to correct and test the support area near the level of 3655. Where can we expect a rebound and the continuation of the rise of the ETH/USD cryptocurrency to the area above the level of 4505. An additional signal in favor of the rise of Ethereum will be a test of the line trend on the relative strength index (RSI). Cancellation of the growth option for the digital currency will be a breakdown of the 3325 area. This will indicate a continued fall in the digital currency with a potential target below 2805.

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Bitcoin

Billionaire Mark Cuban Says Bitcoin Is the Best Store of Value but Likes Ethereum More – Here’s Why

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Shark Tank star and billionaire Mark Cuban believes Bitcoin is the best store of value in the market but says he likes Ethereum more.

Cuban tells his 8.5 million followers in a tweetstorm that Bitcoin’s (BTC) biggest advantage is that it has “zero competition” as a store of value (SOV).

“BTC is what it is. The best SOV on the market… [In my opinion], it’s not a cure for any financial system. It’s not a hedge to anything. Its utility will be driven more by lightning [network] than anything, and its value will be driven by supply and demand. Nothing wrong with that. Gold folks do the EXACT same thing… [In my opinion], BTC has become like gold, an SOV that is now a religion.”

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Although Cuban believes that Bitcoin is the top store-of-value asset in the market, he highlights that smart contract platform Ethereum (ETH) and layer-2 (L2) solutions have more utility than BTC. Layer-2 solutions are protocols built on top of blockchains like ETH to increase transactional throughput.

“I like Eth/L2s more, and there is no point arguing the trilemma, halving or inflation. I like it more because I can see an unlimited number of applications that will change the biz/consumer world forever. And to use them you need to buy Eth/L2. BTC doesn’t have that demand-pull.

So when I said bananas have more utility than BTC, but BTC was a better gold than gold, I meant it. The BTC play is not utility unless something unexpected happens with Lightning. Bananas vs ETH? ETH has more utility. Want more proof? Jjust look at the transaction fees for BTC.”

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While Cuban is a big fan of smart contract platforms, he says that in the long run, investors might throw their capital into BTC. The billionaire believes that smart contract platforms are in a struggle to attract decentralized applications and users.

“All the smart contract chains, and really ALL the blockchains are in a DEATH war to win those applications. Many will lose.

That will also be a HUGE WIN for BTC. When multi-billion [dollar] blockchains become near inactive, a lot of people will see BTC and ETH as safe-havens, and the more conservative crypto play will be BTC. The SOV play will accelerate its value. It will be the safe haven of crypto.”

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