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Ethereum (ETH)

Here’s Why Ethereum Looks Grim In Short-term

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Ethereum was forced to retreat right after hitting its all-time high of $1,439. The crypto-asset was down by more than 12% since then and was currently valued at $1,263. Despite a strong bullish momentum amidst a broader crypto market resurgence, ETH failed to hold its fort above the recently established mark.

Was the ATH temporary or its it just the beginning?

This is what Fundstrat Global Advisors’ cryptocurrency team had to say about Ethereum’s price movement after predicting a $10,500 price target in the coming days:

“We continue to believe Ethereum fundamentals are incredibly strong and think [ethereum] represents the best risk/reward investment play in crypto,”

Ethereum’s Daily Active Deposits

Daily Active Deposits Ethereum

According to the crypto-analytic platform, Santiment, Daily Active Deposits for Ethereum has been less which depicted less intention to sell by the investors in the market. A positive indicating despite the sharp decline after establishing a peak further evidenced that an upside could very much be in the cards.

On the long-term, the second-largest crypto Ethereum exhibited promising and positive momentum. As the data from Santiment suggested that the funding rates for perpetual contracts on BitMEX for ETH were back in the neutral region.

Historically, there has been positive price momentum for the crypto-asset in the past when the funding rates positioned themselves in the neutral territory.

Short-term bearish?

According to the on-chain analytic platform, ETH’s 30-day MVRV ratio was found to be in red territory. It’s lower than on the previous top but still overinflated. The 30-day MVRV is at 30%, which Santiment calls is “a danger zone”.

ETH MVRV

Gauging at the MVRV, it was found that an asset falls into the danger zone when average trader returns become abnormally high for a certain length of time since their initial investment. Most often than not, this depicts that the crypto-asset was becoming overvalued due to variables such as profit-taking from these traders, or due to FOMO buyers playing the part for retail and whale investors.

Ethereum Takes A Plunge Towards Berlin Hard Fork

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Ethereum [ETH] remained a constant visitor of the headlines following the launch of Ethereum 2.0’s Phase zero as well as ETH’s price change. As the network’s native cryptocurrency, ETH has been struggling to hit a new all-time high, Ethereum seems to be out and about with its developments.

Ethereum Devs Reveal Specifications For Berlin Hard Fork

The Ethereum network is all about developments. The network has been undergoing an array of developments over the years. While the network is working towards Eth2, a few developers are still operating on developments pertaining to Eth1. The Berlin hard fork has been time and again delayed. However, the developers decided to implement the hard fork during June 2020, after the Istanbul hard fork and Muir Glacier. That evidently was once again postponed.

In more recent updates, James Hancock, the hard fork coordinator for Eth1.0, took to Twitter to announce updates with regard to the Berlin hard fork. Previously, the Berlin hard fork had about eight tentatively accepted EIPs, now the list was edited down to five. These included,

EIP-2565: ModExp Gas Cost
EIP-2315: Simple Subroutines for the EVM
EIP-2929: Gas cost increases for state access opcodes
EIP-2718: Typed Transaction Envelope
EIP-2930: Optional access lists

Hancock affirmed that the code for these EIPs was merged into all the clients part of the network update. A GitHub post revealed that the clients on the list, Geth, Besu, Nethermind as well as OpenEthereum were ready for the hard fork.

Ethereum

Geth was the only client that did not have EIP-2930 i.e. Optional access lists merged into it. However, the latest tweet from the hard fork coordinator asserts that Berlin is just around the corner.

While the network is sprucing up its developments and upgrades, the price of ETH seems to be having a tough time pushing past its previous all-time high. At press time, ETH was trading for $1,368.40 with a 3% surge in the last 24-hours.

Ethereum’s Daily Transaction Vol Goes Parabolic

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Ethereum has witnessed impressive growth not just in terms of its price but also with regards to the number of transactions on its network. As one of the leading cryptocurrencies, Ethereum’s daily transaction volume has seen a parabolic rise in its figures.

As noted by Messari’s Ryan Watkins, the Ethereum network was currently settling $12 billion in transactions daily. Bitcoin, on the other hand, records a daily transaction volume of 9.3 billion, approximately $3 billion more than Bitcoin.

Messari

The above figure for Ethereum does not include ERC-20s to prevent double-counting from decentralized exchanges [DEXs]. However, Bitcoin’s figures include USDT on Omni. Despite this, Ethereum’s daily transaction volume has surpassed that of Bitcoin by a significant margin.

This can be attributed to the fact that stablecoins and decentralized finance [DeFi] space have been witnessing massive traction especially since mid-2020 which has led the largest altcoin to settle value a lot more than Bitcoin on a daily basis.

Along the same line, CoinMetrics Co-founder, Jacob Franek noted that Ethereum generates more fees than Bitcoin and settles more value. He further went on to explain that this was a good sign since cumulative fees are the most direct measure of aggregate willingness to pay for block space, which indicated a trend of rising demand. He also added,

“Ethereum has the most valuable block space in crypto now. Would it be better if individual tx fees were lower? Yes. That will come with L2 and other scaling efforts.”

Ethereum Still Up by 15% off Its ATH

20210119 ethereum charts coinmarketcap

The premier altcoin has endured a prolonged period of consolidation that started last week. This, in turn, has facilitated the ETH market to flush out weak hands. At the time of writing, the crypto-asset was in the middle of a fresh rally while Bitcoin continued to take control of $40k.

The reason why Ether is expected to undergo a continued strong price momentum triggered is primarily due to the launch of ETH 2.0 and also the imminent rollout of CME futures next month. In fact, the 2.0 is expected to potentially bolster the DeFi economy in general as the space as a whole will benefit from a substantial decline in transaction fees as well as less congestion.

Ethereum Eclipsed Bitcoin In Terms Of Network Fees In 2020

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Bitcoin has gone gung ho. The rally shows no signs of stopping which has further pushed Ethereum’s price to approach its all-time high. However, users seem to have spent more on the Ethereum network than on Bitcoin throughout last year.

This was noted by Rafael Schultze-Kraft, the CTO of the blockchain analytic platform, Glassnode. In his tweet, the exec stated that in terms of network fees, Ethereum “flipped” Bitcoin. The users on the network reportedly spent almost $600 million in fees on Ethereum last year which was 83% more than that on Bitcoin.

glassnode

This could be attributed to the DeFi madness that gained traction in mid-2020 when the ecosystem showed up on the front page of crypto news. The investors were left FOMOing and the enthusiasm was general, both on the side of the projects that have exploded within a very short time span, and the funds involved.

Ethereum has dominated almost every conversation related to DeFi and very well so since it supported the sector almost single-handedly last year. Even as the cracks showed much of it, there was no backing for the users.

This is the first time ever that Ethereum’s network fees surpassed that of Bitcoin. According to the above chart, the users spent a little over $300 million on the latter’s network. And this trend has further intensified as the underlying token, Ether [ETH] hovers slightly below its peak.

Ethereum Fees Shoots Up to All-Time High

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At the time of writing, ETH witnessed a minor setback following which its price dropped to $1,289.9. But it was not until very recently, 3rd of January to be precise that the token surged past the $1,000 mark.

This was followed by the average transaction fee on the network soaring to ATH of $17.41. The last time the Ethereum network’s previous highest average fee of $12.54 was recorded on the 1st of September last year. As Bitcoin rose to prominence shortly around the fourth quarter of 2020, the DeFi mania faded which coincided with a drop in ETH network fees which averaged less than $5 for much of the quarter.

Notably, even as the average fee has since declined, as depicted by the data compiled by YCharts, the latest figure at $7.67 was still quite high.

Ethereum [ETH] Goes Parabolic, But Is A Sell-off Due?

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New all-time highs for Ethereum [ETH] was close as it amassed over 61% gains over the week. Extended rallies have further strengthened the ongoing bullish momentum and the coin entered the list of top 100 assets in the world by market cap.

After hitting reverse, the crypto-asset fell close to a support level above $1,100 and bounced back again in the early hours of Thursday. Ethereum rose by 5.85% over the last 24-hours which drove its price to $1,218.3, at the time of writing. It recorded a market cap of $138 billion and a 24-hour trading volume of $41.78 billion.

The latest bullishness in the market has massively invalidated many short-trade setups, hence short positions could be deemed as risky in the present scenario. Having said that, Ethereum had earlier left major resistance levels untested. Is it ready to go for another bullish spin?

Ethereum [ETH] Daily Chart:

ETH

After an astonishing surge, Ethereum has managed to continue its uptrend in no apparent pattern. The rising price was supported by the moving averages which resisted a potential downtrend. The 50 DMA [Pink] continued to outpace the larger moving averages as it closely followed the price. The 100 DMA [Blue] also mimicked the price action along with the 200 DMA [Yellow] which hovered below it.

Another positive indicator for Ethereum’s price trend was the gauge between the DMAs which has continued to remain uniform suggesting no likely hurdle or reversal in the current bullish phase.

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MACD was significantly bullish as it rose above zero after establishing a bullish crossover on the 27th of December. The extended positive trend demonstrated a strong possibility of bulls outpacing the bears and help weaken potential sell pressure in the market.

The Stochastic RSI was, however, in the overbought region and so was RSI which depicted a positive momentum but a formation of a local top and a coin dump session in the coming days.

In the wake of the recent run, if Ethereum manages to sway bulls in its favor, it could target the nearest resistance levels of $1,296 and $1,386 respectively. However, if bears battle it out, the crypto-asset could retrace its steps to its immediate support level of $960.7. A breach below this level appears unlikely. However, another support level was found at $660.

Bitcoin Briefly Transcends Alibaba After Skyrocketing Above $34k

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Bitcoin underwent a correction to $30,215 shortly after smashing a fresh all-time high on the 12th anniversary of its network being created. With this, the world’s premier crypto-asset went on to break several other records as well. One of the most prominent ones has to be Bitcoin surpassing Chinese multinational technology company Alibaba.

According to AssetDash’s chart for ‘Top Assets by Market Cap’, the leading cryptocurrency briefly crossed Alibaba to score the top 8th position on the ladder. During this short-lived tryst, the cryptocurrency went on to challenge the US electric vehicle giant, Tesla which was seated at the 7th position.

As Bitcoin broke $30k, Jim Bianco, popular macro strategist, tweeted,

“*BITCOIN EXTENDS RALLY TO TOP $30,000 FOR THE FIRST TIME. Bitcoin first passed $20,000 on December 16, and $25,000 on December 26. Now over $31,000 50+% gain in less than 16 days! Bitcoin makes TSLA look like it is standing still.”

Having quadrupled in terms of its price during 2020, the crypto began 2021 with a bang as it breached through the $30,000 mark for the first time ever, in fact, in less than three weeks ago to be specific, after first trading above $20,000. Just four days into 2021 and BTC has already exhibited an extension of its mainstream recognition, which might be held as a guarantee for a long-term bullish trend.

The latest pullback of more than 12% over the past day, from a market cap of over $636 billion to the current $563 billion drove the cryptocurrency to the 10th position. However, it continued to rank well above the financial service giants such as Visa and Mastercard.

Will Bitcoin be able to resume this?

It is very likely that Bitcoin could be, in the coming days, will be able to take over Alibaba once more. The very reason why it seems plausible is that more and more anxious institutions and corporations are on a buying spree of more and more BTC. Hence, the scenario for not just BTC but also the collective crypto market cap is getting more bullish by the second. It is not just the high-net individuals that have played their part, the retail FOMO was also important in this rally.

It is not just Bitcoin that reigns in the charts..

Apart from Bitcoin, the only other cryptocurrency that was found among the top 100 assets by market cap was Ethereum. Thanks to its overwhelming rally of 15% over the past 24-hours, the altcoin made it to 93rd position just above the British multinational investment bank and financial services holding company, HSBC Holdings.

Total Crypto Market Cap Goes For A Stunning Run Above $900 Billion

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The cryptocurrency market is on a full-scale bullish track. The total market cap has reached a milestone of $909 billion before retracing back to the current figures of $865 billion.

This coincided with Bitcoin blasting past $34,000 which, in turn, propelled the altcoin market to enter the bullish weekend bender. According to data compiled by CoinMarketCap, the market cap had previously touched close to $840 billion during the parabolic surge back in 2017-2018.

With this, the crypto market is a little over 10% away from hitting a whopping $1 trillion market cap. This called on for a cheeky comment by Erik Voorhees, CEO of Shapeshift, who went on to state that the latest figure for the total market cap was “roughly 1/7th of The Fed’s balance sheet”.

total market capitalizat

Ethereum Trails Behind Bitcoin’s uptrend

Bitcoin is the largest cryptocurrency out there. It is not just the largest by adoption, and market capitalization, but also most importantly, by hash rate. And while the crypto-asset is undoubtedly responsible for this rise, the altcoins have also caught up to the bullish affair. One of the most prominent coins that have aided the cumulative market capitalization to a new high was Ethereum. The world’s largest altcoin crossed $1,150.

The last time Ethereum hit a four-figures on the dollar was nearly three years back in February of 2018.

The Impact?

Bitcoin’s strong momentum can eventually bring in the much-talked-about alt season in the coming days. Most often than not, altcoins prepare for a substantial surge when Bitcoin consolidates after a big rally, something that was observed since Christmas which has extended to 2021. This essentially happens because it is when Bitcoin stabilizes, that market participants and investors often look to take more risk-on plays in the crypto market.

Historically, when Bitcoin consolidates, the altcoin market was found to be witnessing a significant rise in volume.

A well-known trader at the Amsterdam Stock Exchange Michaël van de Poppe noted that the probability of a temporary Bitcoin establishing a local top is increasing. And if the prediction does hold true, chances of that triggering a massive rally for the altcoin part is likely to materialize.

“The likelihood of a temporary top is becoming significant at this point. Bitcoin dropping down intraday after reaching the second target, while #Ethereum is bouncing upwards heavily in the $BTC pair. That’s great news for altcoins in general.”

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Ethereum’s Upcoming Dips Might Be Limited, Here’s Why

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Ethereum [ETH] has witnessed has seen its price rise steadily on the charts. The crypto-asset soared by approximately 20% over the holiday week as it appeared to be poised for yet another take-off. The technicals depicted a bullish outlook for the world’s largest altcoin after it broke the coveted $700-price level.

Despite creating a compelling opportunity for the bulls to breach crucial levels, Ethereum hit a minor slump of 0.76% over the past 24-hours which pushed its value to $723.7, At the time of writing, it registered a market cap of $82.3 billion and a 24-hour trading volume of $16.4 billion.

Ethereum [ETH] Daily Chart:

ETH 6 e1609331821758

According to Ethereum’s [ETH] one-day chart, it was found that the asset was continuing to trade within the confines of its immediate resistance and support levels. ETH oscillated between the upward sloping trendlines of an ascending channel. As per convention, an ascending channel concludes with a bearish breakout. Meaning, if Ethereum’s value could soon witness a correction to the downside.

The diverging trend between the 50 DMA [Pink] and the 200 DMA [Purple] continued to exhibit a bullish prospect for the coin.

Bullish Alignment

ETH2 2 e1609332001574

MACD underwent a bullish crossover above the zero-line depicting a strong positive momentum. The RSI was also well above the 50-median line depicting a rising buy-pressure among the investors in the ETH market. However, the indicator has not crossed the overbought region which further, suggested that the crypto-asset has not formed a local top just yet and is primed for further gains.

Despite the mega-bearish pattern formation, the technicals were in favor of the bulls. Hence, a minor slip could potentially materialize in the offing but is not likely to be a strong downtrend in the long-term. Interesting levels for Ethereum to look out for were found at $778 and $823 respectively.

Meanwhile, it is important to note that $591 has formed crucial support for Ethereum, hence it is highly unlikely for the coin to see more damage than a plunge from this level. Other support points were $536 and $473.

Ethereum Breaches $735 Triggering Over 90% Addresses In Profit

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Late Chrismas Gift for Ethereum?

Ethereum had a bullish start for the day as it broke above $700 for the first time since the last week of May 2018. The largest altcoin was seen lacking bullish momentum as its price movement broke away from that of Bitcoin. However, Ethereum soon climbed to $735.93, at the time of writing after multiple pullbacks close to the coveted level.

According to the crypto-analytic platform, Glassnode, the latest surge triggered 90% of all Ethereum addresses [which roughly amassed for 47 million addresses] holding ETH are now in a state of profit. The last time this number was witnessed to be this high was back in January 2018.

The infamous Black Thursday crash is worth noting in this context because Ethereum has come a long way since then. In March of this year, only 3.2% of all ETH addresses were in profit as opposed to 90% following the spectacular price rise right after Christmas.

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Here’s what Messari’s Ryan Watkins has to say about the latest uptrend:

“2021 prediction: In 2021 we begin seeing institutions buy $ETH. Once you accept that Bitcoin may be valuable, it opens your mind to the possibility that other cryptoassets may also be valuable. It’s a much easier jump from $BTC to $ETH from there.”

While Bitcoin continued to be the darling of institutional investors and corporations, Ethereum was not far behind either. Amassing a market cap of $83 billion, Ether’s success story among institutional investors can be attributed to strong fundamentals. Especially, the decentralized finance [DeFi] sector happened to be one of the hottest and the most exciting thing in the cryptocurrency industry this year.

This helped the second-largest network to hold on to the leadership status as the enormous majority of DeFi projects were based on the Ethereum blockchain. In addition, the growing network activity, in turn, led to increased ETH transaction fees and strong demand for the underlying token.

The growing conviction around Ethereum as an asset class was witnessed this year. This was further evidenced by the Chicago Mercantile Exchange’s [CME] announcement of an upcoming launch of a futures contract on Ether in February 2021. This development was touted as a game-changer for the ETH ecosystem.

To top that, the Grayscale Ethereum Trust [ETHE] registered over $1.7 billion in assets under management [AUM]. It was also found that the shares of ETHE [OTCMKTS: ETHE] had surged by 700% YTD. This has also intensified the bullish outlook as many market participants now believe that once the Bitcoin rally subsides, there will be a capital inflow into altcoins with ETH being the first choice of high-profile investors.

Ethereum Eyes Crucial Level To Break The Bearish Hiatus

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Ethereum [ETH] has so far failed to catch up with Bitcoin’s price surge. Despite a phenomenal surge, the world’s largest altcoin has failed to follow the queue as it was turned down by a crucial resistance area. ETH dropped marginally over the week, following which the coin was trading sideways and lacked a strong bullish momentum.

Over the past 24-hours, Ethereum was up by a minor 1.76% which placed the price of the coin at $630.19 while it held a market cap of $72.54 billion and a 24-hour trading volume of $16.49 billion.

Ethereum [ETH] Daily Chart:

ETH 4 e1609072433339

Ethereum’s [ETH] price oscillated between the trendlines of a bearish rising wedge which depicted a bearish breakout following the completion of the pattern. As highlighted by the above chart, the 50 DMA [Pink] quickly climbed close to the ETH price candles following several pullbacks in an attempt to overtake the price as the 200 DMA [Blue] continued to lay low.

This depicted a bearish outlook as the ETH’s did not exhibit any price swings.

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The Bollinger Bands were in parallel to each other which was indicative of a period of low volatility in terms of Ethereum’s price action.

Additionally, the OBV indicator depicted a significant buying volume over the past few weeks. There were price pullbacks during the sell-off periods of selling, in tandem with which even OBV saw minor declines. However, the overall trend was in the favour of the buyers.

This was further validated by the RSI indicator which bounced back to above the 50-median line. This evidenced a rising interest among the ETH investors in the market.

Despite a rather slow-price movement, there are some important levels of interest for Ethereum. The recently breached support level of $611 is crucial. If the coin manages to defend this level, it could eye its nearest resistance level of $657. Ethereum has faced several rejections in this area, hence it requires a strong bullish momentum to see the flip. Furthermore, if ETH sets up for an upward move, it could target $701.2.

Other support points were found to be at $560 and $473 respectively.