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Ethereum (ETH), Like Most Cryptos, Enters Consolidation Mode

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Ethereum (ETH), like most crypto assets, is currently consolidating. There is little fundamental news driving prices at present and the best option for traders is to use short-term price levels to initiate short-term positions.

Fundamental Analysis

While there are several ongoing stories about Ethereum, none of them are currently driving the price.

The ICO market has seen a recovery in May, which is helping to support the ETH price. Successful ICOs on the Ethereum blockchain attract more ICOs, which in turn drives demand for ETH tokens. However, increasing numbers of blockchain projects hold ETH on their balance sheets. They need to sell these to release working capital, and in the case of a downturn in the ETH price, there is a risk of these companies liquidating their ETH holdings. This dynamic is sure to lead to continued volatility in the price of Ether.

While there have been no major announcements with regard to addressing the scalability of Ethereum, scalability is also not currently a problem.

Ongoing debates in the US over whether or not Ethereum is a security or a commodity are actually more likely to have implications for other coins than for ETH itself.

Technical Analysis

With few fundamental drivers to go on, investors and traders alike need to focus on the price action. The largest 5 cryptocurrencies have been very highly correlated since March – most of them put in a low on 6th April and a high on 6th May. Any significant moves are therefore likely to occur across the board.

The high correlation means that for longer-term positions, traders should look for confirmation from BTC, LTC, and BCH before initiating positions in Ethereum.

Ethereum 4 Hour Chart (Image Credit: www.tradingview.com)

For short-term positions, there are two levels to watch. The down sloping resistance line going back 10 days, has been rejected four times. Resistance is now at $715, and if this level is broken a rapid move to $760 and possibly $820 would follow.

The support line has been very sharply rejected five times, suggesting very little selling at these levels. This support level is now at $650 and would be a good level for long-term bulls to accumulate. However, a break below this level would suggest a move back to $500, and possibly even $365.

Ethereum vs Bitcoin Weekly Chart (Image Credit:www.tradingview.com)

As far as the relative performance of ETH and BTC is concerned, if history is to repeat itself we may only see another week or two of ETH outperformance before we see a sharp reversal. If the above pattern was to hold it would imply an average long-term ratio of 0.07 BTC per ETH. Alternatively, if the ratio breaks out of the pattern we could see a much longer period of outperformance.

Conclusion

The next move for Ethereum, like most other cryptocurrencies, is unclear at present. After a large three to four-month correction, we saw a one-month rally followed by another smaller correction. Most crypto assets are now consolidating – Ethereum included.

For now, traders can look for short-term trades around the levels mentioned above, or use the volatility to build longer-term positions. It must be said, however, that the long-term picture is far from clear at present.

This article was written by FX Empire.

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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