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Ethereum [ETH] Bulls Eyes $2K Despite Short-term Dip Risks

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Ethereum [ETH] retook several levels in the latest bullish impetus. It was up by more than 16% over the past week. Even as it overturned the bearish sentiment in the market with a three-day winning streak, the crypto-asset suffered a short-term pullback.

Ethereum had started heading lower toward the end of February until it found a price wall at the resistance-turned-support of $1420. Soon after which the world’s largest altcoin by market cap began in consolidation to eventually climb to form recent gains well above $1,800.

It retraced by 1.06% over the past day and was currently trading at $1,811. In addition, ETH held on to a market cap of $208 billion and a 24-hour trading volume of $22 billion, at the time of writing.

Ethereum [ETH] Daily Chart:

The 20 moving average [Pink] depicted a short-term outlook as it slid below the Ethereum price candles soon after the crypto-asset hopped on to a fresh bullish momentum to reclaim the losses. Adding another layer of bullish phase was the 50 DMA [Purple] which was not only hovering below the former but also moved under the candlestick arrangement following the latest uptick.

The placement was bullish, however, the moving averages appear to be converging. If the trend continues and they undergo a bearish crossover, Ethereum’s price risk in fall in the short-term.

Bullish momentum aided the ETH bulls as Awesome Oscillator’s green bears flipped on the positive side depicting the rising strength. Further validating the rising bullish momentum was On Balance Volume [OBV] which projected healthy buying pressure and backed a favorable outcome in the coming days.

After briefly nearing the oversold section and creating an obstruction for the bulls, the RSI rose above the 50-median line depicting a sentiment of increased buying pressure and room for more upsides in terms of Ethereum’s price moving forward.

In case of a short-term pullback, ETH’s price could revisit its nearest level of support at $1,531. A scenario of an extended downtrend in the market seems highly unlikely. Nevertheless, its price found critical supports at $1,418 and $1,242.

The above analysis a bullish signal with respect to it long-term scope. Target points for further upside was found to be at $1,962 and $2,046 respectively.

Ethereum is Significantly Undervalued , Says German Crypto Analytics Firm

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New research by a cryptocurrency research firm based in Germany, Blockfyre, suggests that Ethereum is significantly undervalued. The study shows that the price of Ethereum has yet to keep up with the development of the network.

On May 26, the German analytics firm Blockfyre published an analysis of the development of four key metrics of the Ethereum blockchain. The progress of the metric means that Ethereum is significantly undervalued at its current price. These metrics include the use of gas, the development of the ecosystem, the mean dollar of investment age, and the balance of the miners.

https://twitter.com/blockfyre/status/1265252762553548800

Gas usage indicates Ethereum is significantly undervalued

According to Blockfyre, Etherum could be heading for a bullish run. In fact, daily gas usage on the network reached a new record high on May 23, reaching 16.67 billion. Gas usage is the most powerful indicator that the use of the network is being used at a very high rate.

Every time a user makes a transaction through any Ethereum-based Dapp, the gas is burned. The higher the  gas usage, the higher the use of Dapps. For instance, interacting with NFT games or trading on Crypto Exchange Platforms. Indeed, all this activity is good at the price of Ethereum.

In addition , the development of the Ethereum ecosystem has remained consistently strong since 2018. This means that, despite the daily price of ETH, the development of power is still in progress. For example, DeFi products such as Uniswap and Balancer are popular Ethereum developers introducing new attributes, increasing the value proposition of Ethereum.

The average age of invested dollars

The average age of invested dollars on the Ethereum blockchain , and the ETH balances held by the validators are surging to record highs after bottoming during the crypto bubble two years ago. Additionally, the miner balances have multiplied twice since early 2018, as per the German analytics firm

According to Blockfyre co-founder, Simon Dedic: 

“It’s really interesting that both miners and investors have been holding ETH since 2018. It seems like a majority agree that these prices are just not worth selling ETH.” 

Furthermore, he says the price decline since the 2018 rally is contributed by ICO selling vast amounts of tokens for capital in dollars, as they continue building their products.

Bitmex Announces Native ETHUSD Quanto Futures Contract with Fixed Bitcoin Multiplier

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The cryptocurrency market has witnessed several updates and developments in the past few months. One of the biggest positive takeaways from this was the fact that multiple activities took place despite the crypto market cap taking a hit over the last couple of weeks.

In another message that virtual asset markets were more confident than ever, BitMEX launched its latest Ethereum-based futures contract on 24 April. The derivative contract will contain a fixed bitcoin multiple that will be untouched by the value of Ethereum in USD.

The popular trading platform stated that the latest feature was one of its kind in the market with the ability to open new doors for trading on the platform. Investors holding ETHUSD quanto futures contracts will not have to worry about daily exchange rate changes, according to the platform.

BitMEX users can use the latest feature to their advantage by going long or short on ETH trade without holding actual tokens or USD. According to an official BitMEX release:

“This allows traders to long or short the ETH/USD exchange rate without ever touching either ETH or USD! Traders post margin in XBT, and earn or lose Bitcoin as the ETH/USD rate changes.This contract combines the quanto feature of our ETHUSD perpetual swap with the expiry and settlement found in traditional futures. As with every BitMEX altcoin future, it expires quarterly.”

Sources indicate that BitMEX will enter into a futures contract on May 5, the day after the much-awaited bitcoin halving. Users will be able to trade the same contract with a leverage of 50x, a high rate considering that BitMEX has been trailing its competitors in terms of market share capture. The exchange created the new contract by combining its perpetual swap contract quanto feature with the expiry of traditional futures.

Users also need to keep in mind that quanto contracts will also expire every quarter just like BitMEX’s altcoin futures contract. The Bitcoin multiplier will work at a rate of 0.000001 with a maker fee of -0.025 percent. The taken fee proposed by the exchange is 0.075 percent with a base initial margin of 2 percent.

Those interested in dabbling in the futures contract can test BitMEX’s product for the next two weeks on the released testnet version of the quanto futures. The company will want to win back its lost ground by gaining dominance in the burgeoning market. The current ETH-USD trading contract will expire by June, after which analysts expect a new surge of investors.

Ethereum [ETH/USD] Technical Analysis: Price Remains Unmoved as Users clamor for ‘Altcoin Revolution’

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Ethereum and the rest of the cryptocurrency market have seen a multitude of changes in their values over the past few weeks, causing the user base to scramble in confusion. A lack of a significant price increase of ETH even caused many scammers and fraudsters to be flushed out of the space, leaving only those dedicated to the industry. The Vitalik Buterin co-founded Ethereum was speculated to be the kingpin of the altcoin revolution and as of January 2, the second-largest cryptocurrency was showing no signs of a climb up.

1 hour:

In the hourly spectrum, ETH held an immediate resistance of $135.29 and immediate support of $127.8. The cryptocurrency was trading for $129.6 at press time and has been averaging at that range for two weeks.

The Parabolic SAR was above the price candles which meant that ETH was going through a bearish atmosphere.

The Relative Strength Index was near the oversold zone after a drop in price during the first day of the year. The hold near the lower zone was a sign that the ETH selling pressure was much more than the buying pressure.

The Chaikin Money Flow indicator had slightly crossed the zero line on January 2nd after a fall below it on the previous day. Experts claim that the rise could be attributed to an increased influx of capital into the Ethereum ecosystem.

1 day:

Ethereum’s daily chart spoke a different story as the cryptocurrency struggled to break out of its long term rut. The immediate support on the daily chart was clocked at $121.92 while the cryptocurrency was trading for $129.5.

The Relative Strength Index on the daily spectrum showed similar characteristics to that of the hourly chart. Staying near the oversold zone, it was clear that the selling pressure was greater than the buying pressure.

The Chaikin Money Flow indicator was below the zero line, a hold that has sustained since the middle of December. In the long term, the capital leaving the Ethereum market has been much greater than the capital coming into it.

The Parabolic SAR was below the price candles, a contrast to the hourly chart. This was a sign that in the extended time frame, ETH was going through a bullish scenario.

Conclusion:

The above-mentioned indicators clearly showed that Ethereum has a lot to do before it can trigger an altcoin revolution. Analysts predict that the second largest cryptocurrency has to break at least the $180 barrier before it can be considered as a legitimate candidate to trump Bitcoin.