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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.

Altcoins

DeFi Wizard Raises $750k from Blockchain Investment Bigshots, to Simplify Multi-chain DeFi Legos

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Bengaluru,, India, 24th February, 2021, // ChainWire //

In order to give shape to their ‘one-click DeFi contracts creation’ dream, Defi Wizard has raised a total of $750,000 from X21 Digital, AU21 Capital, Amsterdam-based TRG Capital, DeltaHub Capital, NGC Ventures, and ExNetwork.

Speaking on latest development Defi wizard founder and CEO, Anand Kamath said: 

“It gives us immense pleasure to announce that our platform, DeFi Wizard has attracted the attention of leading blockchain investors and funds.”

DeFi Wizard aims to help cryptocurrency companies and businesses seamlessly create digital assets, without any hassles, with the objective of becoming an all-in-one token creation platform. 

Investment Usage

This recently concluded fundraising round is an important milestone for Defi Wizard. It will fuel the development of the platform along with operations/maintenance.

Other ways in which Defi wizard will receive assistance is with liquidity bootstrapping for Uniswap listing, alongwith added global and regional promotional efforts to generate awareness for the platform. 

About Defi Wizard

Defi wizard is a dashboard for building DeFi (decentralized finance) smart contracts with a few clicks. It offers real-time programmer analytics and allows users to create smart contracts for ERC20 / BEP20 / EDST, staking, yield farming, governance, cross-chain bridge, gasless relayer baked in.

As per the latest statistics, more than five projects are already using DeFi Wizard’s staking services and more than $100M AUM has been locked through the smart contracts generated through the…

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Altcoins

99Bitcoins takes over the “Dead Coins” project to become the cryptocurrency undertaker

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Singapore, Singapore, 17th February, 2021, // ChainWire //

99Bitcoins, an educational website that maintains a list of Bitcoin obituaries made by the media, has taken over the Dead Coins project as well. This move effectively crowns 99Bitcoins as “The undertaker of the cryptoverse”.

Deadcoins.com was established in late 2017 to document the death of thousands of altcoins that popped up during the cryptocurrency mania of that time. The idea was simple – create a list of coins that have ceased to exist after the hype died down.

A coin can become “dead” due to a variety of reasons such as its development being halted, having no one that uses or trades it, being exposed as a scam and more. While the project was initially maintained only by its founders, it was later outsourced to the cryptocurrency community which was allowed to add their own dead coins.

“I think the dead coins project is a brilliant idea that needs a bit of polishing” says Ofir Beigel, owner and founder of 99Bitcoins. “The fact that anyone can add a dead coin themselves made the list of coins very inaccurate. We’ve spent days going through the complete list and sifted out all of the coins that were buried alive, so to speak. For example, Bitcoin, Tron, Dogecoin and Tether are just some of the coins that were listed when we took…

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Altcoins

99Bitcoins takes over the “Dead Coins” project to become the cryptocurrency undertaker

Published

on

Singapore, Singapore, 17th February, 2021, // ChainWire //

99Bitcoins, an educational website that maintains a list of Bitcoin obituaries made by the media, has taken over the Dead Coins project as well. This move effectively crowns 99Bitcoins as “The undertaker of the cryptoverse”.

Deadcoins.com was established in late 2017 to document the death of thousands of altcoins that popped up during the cryptocurrency mania of that time. The idea was simple – create a list of coins that have ceased to exist after the hype died down.

A coin can become “dead” due to a variety of reasons such as its development being halted, having no one that uses or trades it, being exposed as a scam and more. While the project was initially maintained only by its founders, it was later outsourced to the cryptocurrency community which was allowed to add their own dead coins.

“I think the dead coins project is a brilliant idea that needs a bit of polishing” says Ofir Beigel, owner and founder of 99Bitcoins. “The fact that anyone can add a dead coin themselves made the list of coins very inaccurate. We’ve spent days going through the complete list and sifted out all of the coins that were buried alive, so to speak. For example, Bitcoin, Tron, Dogecoin and Tether are just some of the coins that were listed when we took…

Continue Reading

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