- Ethereum price analysis is bearish today.
- ETH/USD set lower high at $4,700 overnight.
- The downside is likely to be tested again today.
Ethereum price analysis is bearish today as we expect another move lower to set another higher low after a lower high was set overnight. Overall, ETH/USD is currently trading in an increasingly tighter consolidation, meaning not a lot of volatility should be seen today.
The cryptocurrency market traded with mixed results over the last 24 hours. The market leaders, Bitcoin and Ethereum, lost 0.3 and 0.11 percent, while the rest of the top altcoins saw a slight gain.
Ethereum price movement in the last 24 hours: Ethereum continues to consolidate as another lower high is set
ETH/USD traded in a range of $4,510.92 – $4,702.12, indicating milf volatility over the last 24 hours. Trading volume has declined by 14.6 percent and totals $16 billion, while the total market cap trades around $544,86 billion, resulting in market dominance of 19.58 percent.
ETH/USD 4-hour chart: ETH heading to set another higher low?
On the 4-hour chart, we can see bearish momentum returning, likely leading the Ethereum price to set another higher low as the consolidation continues.
Ethereum has seen bearish momentum return this week. After a new higher high was set at $4,650 last week, the following retracement set a strong higher low at $4,350.
From there, ETH/USD moved higher again at the beginning of this week until a new all-time high at $4,840 was set on the 9th of November. However, since then, Ethereum has seen a strong spike below $4,500, followed by a consolidation in an increasingly tighter range.
As both higher low and lower highs were set over the past 24 hours, we expect Ethereum to continue consolidating. ETH/USD is currently headed lower again, likely to set a higher low above $4,500.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bearish today as we expect another higher low to follow after ETH peaked at $4,700 overnight. Therefore, ETH/USD is expected to continue trading in an increasingly tighter range.
ETH/BTC Ready to Break Higher? Not So Fast, Some Analysts Say
A much-discussed chart among crypto traders in recent days has been the ethereum (ETH)/bitcoin (BTC) chart, with many claiming it looks primed for a sharp move higher. However, some are still betting on an opposite outcome, with investor demand also indicating stronger appetite for bitcoin.
The potential break-out for ETH has gotten a fresh round of attention following strong outperformance of ETH over BTC during the past week. At 11:57 UTC on Tuesday, ETH was up 11% over the past 7 days, while BTC was up 2.5% over the same time period.
The notable difference in performance came at a time when the stock market has tumbled over renewed coronavirus fears, with the US S&P 500 futures currently down by about 2.9% from its all-time high on Monday last week.
And as has been pointed out by many in recent weeks, bitcoin is still behaving more like a risk asset that fluctuates with the stock market, than a safe haven hedge like gold. This relationship has once again been demonstrated in recent days, some crypto traders have argued.
The ETH/BTC chart has also been pointed to by Raoul Pal, founder & CEO of Real Vision, who said recently that he sees it as “the most important chart in digital asset markets right now.”
“A break higher will lead to more risk seeking into year end,” Pal said, suggesting that we may be entering a new bullish period for altcoins.
However, as usual, not everyone agrees with the narrative that ethereum is about to break higher relative to bitcoin. According to the popular crypto trading educator and Crypto-TA.nl founder Crypto_Ed, the ETH/BTC chart is not breaking out yet, and instead may be looking at a move lower.
“I see many tweeting ETHBTC chart looks so good….. All I see is a rising wedge with bearish divergence and it looks more like it’s gonna break down,” he said, adding that the same also holds true when looking at the same chart with a longer time frame.
So many comments I should look at higher TF…
Well, that's what I taught ~2000 students in past years: "always start at the highest possible TF"
Daily TF: symmetrical triangle, usually in an ABCDE.
E doesn't need to go completely to the bottom but will do a pull back pic.twitter.com/ZpyeI3bGDo— Crypto_Ed_NL (@Crypto_Ed_NL) November 29, 2021
Similar takes were also shared by other traders.
Futs a bit heavy as well, tough conditions thought we were looking better earlier— Depression BTC (@depression2019) November 30, 2021
Growing capital flows
According to last week’s Digital Asset Fund Flows report from CoinShares, bitcoin appears to be enjoying greater momentum than ethereum in terms of capital flows into regulated investment vehicles.
As reported, last week, BTC saw the largest inflows in 5 weeks totaling USD 247m (compared with USD 114m a week earlier) following the launch of another investment product in Europe, they added. ETH saw inflows totaling USD 23m last week, compared with around USD 13m a week earlier.
3/ demand – we track weekly investment flows via our @CoinSharesCo report
in the last 11 weeks, we've seen $2.7B of inflows into bitcoin ETPs alone. demand continues unabated, and w $5.5T of dry powder on the sidelines, there's plenty of capacityhttps://t.co/Ivu9apdYqv— Meltem Demir◎rs (@Melt_Dem) November 29, 2021
Moreover, Marcus Sotiriou, a sales trader at the UK-based digital asset broker GlobalBlock, is also demonstrating a bullish stance towards bitcoin.
“Bitcoin appears to be forming a falling wedge pattern which is historically bullish and has a higher probability of breaking to the upside than the downside,” the trader wrote in an emailed comment, adding:
“If the down trending line of resistance is broken, bitcoin may be on its way to retest the all-time-high as the technical target is around that region.”
At 11:57 UTC, BTC traded at USD 57,600, up 1.4% over the past 24 hours. At the same time, ETH stood at USD 4,581, up 6.3% over the same time period.
Ethereum privacy protocol Tornado Cash to launch on L2 Arbitrum
Tornado Cash is about to get a scaling boost as the privacy protocol prepares for deployment on the Ethereum layer two network Arbitrum.
Tornado Cash’s smart contracts are ready to roll on thArbitrum Layer 2 scaling network following contributions from the community to ensure the stability of the protocol.
The Monday announcement explained that deploying on Arbitrum will “allow users to take advantage of all the benefits a Layer 2 can offer, with cheaper transactions being the biggest comparative advantage.”
Tornado Cash is a fully decentralized Ethereum (ETH) mixer protocol. Tornado Cash masks the path that tokens such as ETH take from sender to receiver, providing completely private transactions without the need to use privacy-focused coins.
Layer two networks on Ethereum boast faster transactions and cheaper fees while still benefiting from the security and decentralization of Ethereum.
The Tornado Cash team believes that the deployment onto Arbitrum will allow more users to perform private crypto transactions while avoiding Ethereum’s high gas fees. L2 transactions are expected to be around 95% cheaper than those on L1 Ethereum, according to the team.
In order to use Tornado Cash on Arbitrum, users must first send ETH, ERC-20, and ERC-721 tokens from Ethereum to Arbitrum via the Arbitrum Bridge.
Arbitrum is currently the biggest L2 on Ethereum with $2.68 billion in total value locked, representing 39% of the L2 market share. This is second only to Boba Network’s $1.38 billion in TVL, making Boba and Arbitrum the only two L2’s with over $1 billion in TVL, according to L2Beat.
The number of unique addresses on Arbitrum has grown steadily since September and stands at 291,876 as of the time of writing. Tornado Cash has $847 million in TVL according to DeFiPulse.
As reported by Cointelegraph, Tornado Cash unveiled its TORN governance token in Dec. 2020 and airdropped them to users in February 2021.
Learn Important Basics About Ethereum Virtual Machine(EVM)
Ethereum virtual machines (EVMs) are blockchain-powered software platforms. EVMs allow software architects to build and deploy decentralized applications (dApps).
Blockchain developers really value them, because they do not have extended downtimes and are able to keep created application objects safe from being modified or altered.
If you are looking to start using EVMs, then you need not be an expert programmer.
EVMs are designed in a manner that also eliminates the requirement for really powerful hardware, which makes them suitable for beginners.
The Ethereum blockchain platform includes external and contract accounts. With a transfer initiated from any one of these, users may send ETH or data in binary format.
When platform developers use gas, it protects the EVM from various attacks that might end up slowing down the blockchain network.
Also, depending on its type, Ethereum (ETH) network data resides in storage, memory, or stack.
Ethereum Works by Executing Opcodes
Users are able to disable EVM accounts or completely remove them via the selfdestruct Solidity command. But how does Ethereum actually work?
The smart contract platform is able to perform various tasks by executing specific types of instructions, known as opcodes. Each opcode is 1 byte (or 8 bits) in size and gets encoded to bytecode.
Opcodes are also split up into its bytes when users perform a certain task.
Since there are a total of 140 opcodes, Ethereum virtual machines are said to be Turing-complete, meaning that it can (theoretically) solve any type of computation problem.
The source-code that’s executed on it does not have access to other system processes on users’ PCs, which effectively isolates the EVM.
As mentioned, there are two main types of accounts on Ethereum: external and contract. EVMs are able to treat both equally.
And every account has a certain ETH balance. Meanwhile, any transfer that carries ETH can change it.
It’s also worth noting that a transfer initiated from one account to another may hold a certain amount of ETH or binary data (also called payload).
Additional actions may depend on the actual account. So if it includes source-code, then that gets executed. The payload effectively turns into input data.
And if it’s not set, then the code users send gets executed and ends up returning code for a completely new contract.
During the construction phase, the source-code of the contract does not contain anything (in other words, it’s empty).
Since there’s no centralized authority, contracts are run on all Ethereum network nodes. This approach may lead to a (considerable) slowing down of the blockchain network (which may be the intention).
In order to really slow things down, they can create many different and complex contracts.
To ensure protection from such attacks, every opcode comes with a base-level gas cost, and gas is like a token that’s used to pay EVM for performing the transaction.
Its main goal is to place a certain limit on how much work an operation needs. As the EVM completes the transfer, it starts using its gas up (gradually).
EVM Stores Data/Info in Storage, Memory, or Stack
The EVM specification lists three independent storage areas, which include storage, memory, and the stack.
Storage areas may be found inside each account and are able to store the contract state variables.
Storage gets assigned as part of the process of issuing a smart contract. Users may change this with a sendTransaction function call.
Notably, no contract is able to read the storage of another contract (for security and privacy reasons) or write directly into it.
Meanwhile, memory is linear and can hold temporary variables.
Since they only actually exist in the calling function itself, memory is erased between calls. Users may address memory at byte level, but the limit of one reading is set at 256 bits, and writes may be of anywhere between 8 and 256 bits.
Users are required to pay in gas in order to expand memory. And it can scale quadratically, and the more it expands, the more it will cost. But it is still cheaper to use when compared to storage.
The EVM specification defines it as a stack machine. A stack is where the computations take place.
This data area can carry as many as 1024 small local variables. And each stack item has a total size of 256 bits.
The stack is also the most economical out of the different data storing areas.
A programmer may have limited access to the stack. They can copy one of 16 top elements to the top, or choose to make the top element switch places with one of the 16 under it.
In order to get deeper access, users may start moving stack elements to the storage area or directly to memory.
Logs Technically Not a Memory Type
It’s worth noting that logs aren’t really a memory type. But they are also used to hold data, so they could cover them as well when introducing Ethereum/Solidity.
Logs can carry data via an indexed structure with a mapping reaching block level. Smart contracts won’t have access to the data contained in the log once it has been created.
But they may be reached from outside the blockchain itself. Some of this data is also found in bloom filters.
Other important information to know about EVMs involves the Solidity selfdestruct operation, which removes source-code from the blockchain.
But it will still remain part of the blockchain’s history and may still stay in most of the EVM nodes.
EVM Tech Is Evolving, Maturing Rapidly
EVM technology has evolved considerably during the past few years. One notable project called Syscoin, which leverages the best of Bitcoin and Ethereum via a coordinated platform, has developed its own Network Enhanced Virtual Machine (NEVM).
As explained by its developers, Syscoin’s design keeps intact the “gold standard” security of the Bitcoin consensus mechanism and merged-mining while offering the performance characteristics expected in Ethereum’s 2.0 future thanks to L2 ZK-Rollup technology.
The main advantages of NEVM are: L2 scalability for smart contracts, as well as independent fee markets, which are powered by ZK-Rollups.
NEVM is also compatible with Ethereum, so basically any ETH-based smart contract may be deployed on NEVM.
Then there’s robust security, because the platform utilizes proven L1, by leveraging Bitcoin merge-mined PoW and Bitcoin-compliant consensus.
In addition to these features, protocol adaptation enables trustless portability of value between Bitcoin and Ethereum (SYS <-> NEVM), all on a single, coordinated platform
Ethereum accounts may be external and contract. Users may send ETH tokens or binary data from one account to another by conducting a transaction.
SInce gas is used for transfers, it becomes practically impossible to start slowing down the performance of EVMs (intentionally).
In order to store data in Ethereum, developers may choose to use storage, memory, or stack.
And to remove EVM accounts, they can use the selfdestruct Solidity operation. There’a also an option to deactivate them by changing the value of an internal state.