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Bitcoin Miners Send 14K BTC To One Block. Bullish News For The Market?

After the official US inflation numbers were released, bitcoin prices started to rise. However, during the previous month, the BTC miners have increased their outflow.

A new set of tax policies targeted at preventing domestic cryptocurrency mining were unveiled by Kazakhstan, which is still a significant nation in the world of Bitcoin mining.

During a halt in worldwide activity and fire sales connected to recent bankruptcy-related news, prices for Bitcoin mining rigs are also said to have fallen to epidemic lows for 2020.

Most significantly, Texas power grid operators have asked all Bitcoin miners to cease operations in order to lessen the strain on a power grid that is already overloaded.

Bitcoin Miners Inflow Reach New ATH

IT Tech reports that Bitcoin miners transferred over 14,000 BTC to an exchange in a single block. The transfer from the miner wallet to the exchange was noted as being unfavorable for the market. According to their definition of mining pool wallets in their stats, all pool members—including the specific miner—are included.

One user did point out that those Bitcoin were not reflected in the spot market or derivatives, though. Glassnode reported that the BTC Miners’ Netflow Volume on a 7-day moving average (MA) basis hit an all-time high (ATH) of $1,779,953. In the first week of January 2022, an ATH of $1,700,940 was registered.

This outflow did not stop on the exchange wallet, according to Ki Young Ju, CEO of CryptoQuant. It will probably end up in a custodial cold wallet. This can be utilized as an OTC deal or as a custodial service. In his opinion, the news is either bullish or neutral.

Related Reading | Mid Cap Crypto Coins Lead In July, Best Way To Weather The Winter?

Price May Surge?

Additionally, open interest is increasing, according to IT Tech, and the market may soon experience growth. The Bitcoin miner reserves have decreased during the last two weeks, according to the study. This, however, may be a significant sign of waning confidence in a price turnaround.

Within the past 24 hours, the price of bitcoin has increased by more than 6%. BTC is currently trading for $20,953 on average. Its 24 hour trading volume is up by 2% to stand at $32.8 billion.

BTC active addresses have grown during the past 24 hours, says Santiment. The number was close to a million at press time, compared to 860,000 on July 14. This demonstrates that investor mood is quickly improving.

Source: Santiment

The volume, which changed from 28.13 billion to 31.64 billion, is in a comparable scenario. For Bitcoin maximalists, the increase in price over the past 24 hours on July 15 may be a sign of relief. In reality, at the time of writing, Bitcoin’s market cap has increased from $376 billion to $395 billion.

BTC market cap surges. Source: TradingView

In the meantime, Anthony Pompliano said in his analysis that the price of bitcoin is declining due to rising inflation. It may be accurate, he continued, that it is not a strong hedge against CPI.

Related Reading | Bitcoin Price Spends Four Weeks At 2017 Peak Prices, What Comes Next?

Featured image from Pixabay, charts from TradingView.com and Santiment

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Bitcoin Manage To Hold Its Own As Wall Street Open With Losses, Analysts Weigh In On Bottom

While American stocks plunged at the opening of Wall Street on July 14, Bitcoin escaped losses, but traders remained uneasy.

Analysts Weigh In On Bitcoin Bottom

The S&P 500 and Nasdaq Composite Index both fell by about 1.8% at the time of writing as Wall Street opened in the red.

Although the largest cryptocurrency’s correlation to stocks declined to its lowest levels of 2022 so far, Bitcoin was still able to hold its own.

BTC/USD trades above $20k. Source: TradingView

BTC/USD fluctuated around $20,000 during the day, as shown by data from TradingView.

However, few were prepared to declare that hodlers’ worst days were behind them.

Aksel Kibar summarized to his Twitter followers:

“This has been a weak rebound so far. Another possible bearish continuation…”

Related Reading | Bitcoin Drops Below $22,000, Is Peter Brandt’s Analysis Still In Play?

Due to a confluence of macroeconomic factors, well-known economist and analyst Michael Suppo anticipated a lower low than June’s around $17,500 levels.

“No way is $17.5k the bottom for Bitcoin,” he noted.

Before any retest of the current multi-month lows, some people thought that higher support levels would hold.

Trading Volume Tumbles To Lowest Since 2020

Exchange-wide spot and derivative volumes have decreased, falling more than 15% since May to over $4.2 trillion, the lowest level since January of last year. Spot volumes fell roughly 28% to $1.41 trillion in June alone as Bitcoin fell to its lowest level since December 2020, according to statistics gathered by CryptoCompare.

The amount of trade in derivatives decreased by 7% during the month, which was the lowest level since July 2021. In the cryptocurrency industry, derivatives play a significant role and account for more than half of the market.

Source: Cryptocompare

Market observers believe the pattern makes sense in light of the dips in Bitcoin and Ether, both of which have plunged more than 70% from their all-time highs last year. The price of bitcoin dropped 15% on June 18 to $17,599, its lowest level since late 2020.

Related Reading | Data Suggests Buying On Coinbase Behind The Bitcoin Pump

Featured image from Pixabay, charts from TradingView.com

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Celcius Market Cap Crashes 86% On Year-To-Date Basis As Company File For Bankruptcy

Investors in the failing cryptocurrency lending startup Celsius are still losing money weeks after the company filed for bankruptcy. Customer withdrawals had been frozen.

Celcius Market Cap Crash 86%

As the company’s problems worsen, investors have stepped out to relate their experiences following the withdrawal freeze and the ensuing bankruptcy application. One user who placed their entire life money in Celsius lost everything.

Uncertainty over when business as usual will return further complicates the situation for the affected investors. Even though Celsius voiced optimism about allowing withdrawals, the most recent developments continue to dash investors’ hopes.

The firm’s issue also seems to have played a role in the native token CEL’s notable capital outflows. According to CoinMarketCap, CEL’s market value has dropped by 85.84% year-to-date in 2022, from $1.06 billion on January 1 to $0.15 billion on July 14.

CEL market cap YTD. Source: CoinMarketCap

Despite attempts by Celsius holders to push the cryptocurrency back up to its highs in an effort to save the struggling company, the token has suffered huge losses.

For instance, on July 4, CEL’s community’s activity produced double gains.

Related reading | Inflation Hits New 40-Year High, Will Bitcoin And Ethereum Plummet Again?

A Community Of Woes

Early on Wednesday morning, the cryptocurrency lender issued a press release revealing that it has submitted a Chapter 11 petition to the Southern District of New York bankruptcy court. CEO Alex Mashinsky of the company stated in the statement that the filing was “the right choice” for the business.

After limiting customer withdrawals due to harsh market conditions that affected liquidity, Celsius ran into difficulty early last month. The company filed for bankruptcy on July 13 even though it had previously told users that it was trying to return to normal operations.

The CEO noted:

“I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company,”

According to the press statement, Celsius has $167 million in cash reserves and intends to continue operations.

Customers of Celsius have expressed their opinions in response to the bankruptcy filing. One of the most popular posts on a subreddit devoted to the firm includes a list of suicide hotline numbers. Hours after Celsius released its message, a user opened up about their problems in a another thread titled “I am suicidal.”

CEL/USD trades at $0.7. Source: TradingView

Numerous reactions to Celsius’ Twitter post from customers allege they have lost access to their life savings as a result of the company’s suspension of withdrawals. “I’m a sole parent. My life’s course will shift as a result. One person tweeted, “I feel nauseous. “Please let me borrow a rope from someone. Another person added, “Celtic just filed bankruptcy for me as well. Another person described how giving the business their money caused them to “lose pretty much everything.”

The troubles of Celsius have also been made worse by a lawsuit brought by a former employee who claimed the company was a Ponzi scheme and lacked adequate safeguards for client investments.

Notably, Voyager, another cryptocurrency lender, filed for Chapter 11 bankruptcy protection after suffering large losses, making Celsius the third cryptocurrency processor to do so in a month. Amidst erratic market conditions, Three Arrows Capital also applied for bankruptcy protection.

Suggested Reading | Quant (QNT) Registers Gains In Past Days – A Short-Term Upswing In Place?

Featured image from Shutterstock, chart from TradingView.com and CoinMarketCap

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Red Hot Inflation Tumbles Ethereum By 5%

The US consumer price index, a comprehensive indicator of prices for goods and services used in daily life, increased to 9.1% over the previous year. The traditional and cryptocurrency markets have collapsed as a result of this announcement. Prices for the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), fell by almost 5%. It didn’t plummet as much, though, as was expected.

Ethereum Fall To Inflation

At the time of the CPI report, the price of the second-largest cryptocurrency fell as low as $1,019 per unit. Before the announcement, the price of ETH was fluctuating about $1,089 USD. It has managed to bounce back from the inceptive slump.

The price of ethereum has decreased over the past 30 days by about 15%. At the time of publication, the average price of ETH is $1,037.

ETH/USD hovers close to $1k. Source: TradingView

The data show that the price of bitcoin decreased to trade below the 19K price barrier. But to reach $31.8 billion, its 24-hour trading volume has increased by more than 14%. However, the initial decline in the price of bitcoin was reversed. As of the time of publication, it was trading at an average price of $19,317.

Related reading | Inflation Hits New 40-Year High, Will Bitcoin And Ethereum Plummet Again?

The last four hours have seen a liquidation of about $49 million in Ethereum, according to the Coinglass. While within the same time frame, Bitcoin had a liquidation of about $33 million. Solana (SOL) declared a liquidation of almost $3.43 million in the meantime.

Inflation Highest In 40 Years

According to reports, the June adjusted CPI annual rate was 9.1 percent. A projection of 8.80 percent was made. While the prior quarter’s percentage was 8.60%. But it’s said to be the biggest increase since November 1981.

The cost of food and energy are reportedly the biggest contributors to the increase. The probability that the Fed will increase the rate by a further 75 basis points in September is extremely high. Nasdaq futures decreased by almost 1.5 percent, S&P 500 futures decreased by 1%, and Dow futures decreased by 0.6 percent.

Suggested Reading | Quant (QNT) Registers Gains In Past Days – A Short-Term Upswing In Place?

Featured image from Shutterstock, chart from TradingView.com

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Negative CPI Report Causes Bitcoin Market Cap To Lose $15 Billion In 10 Minutes

For the month of June 2022, the US Bureau of Labor Statistics published its Consumer Price Index. The Negative CPI was found to be 9.1%, the largest inflation increase in the US in the previous 40 years. The Federal Reserve’s monetary policy is determined by the CPI, which is a reliable indicator of inflation.

Negative CPI Report Causes Bitcoin To Tumble

Prior to the release of U.S. inflation statistics on July 12, the price of Bitcoin (BTC) settled into a solid holding pattern, which ultimately added more negative volatility.

According to the latest CPI report for June, inflation in the United States reached 9.1%, which is the highest level since November 1981. This news only served to accelerate the downward trend in Bitcoin and the cryptocurrency market.

Following the release of the CPI, BTC falls by around 4% within ten minutes. Traditional market gauges like the S&P 500, Dow Jones, and NASDAQ are all sharply lower.

According to TradingView data, Bitcoin is currently trading at $19,180, down 3.45% on the day and 4.70% for the past week, with a total market cap of $366 billion. Notably, the flagship digital asset lost $15 billion from its market capitalization, dropping from $379.91 billion to $364.55 billion.

Bitcoin market cap at $374 Billion. Source: TradingView

The CPI for the previous month revealed an increase in inflation of 8.6% year over year, the highest level since 1981. The Fed implemented quantitative tightening monetary policies in response to extremely high inflation.

The entire crypto industry saw a severe downturn as a result of the Fed’s hardline monetary policy. The last ten years’ worst financial quarter for Bitcoin was experienced.

Related Reading | Wall Street Investors Expect Bitcoin To Hit $10,000, Is This Possible?

This revelation may have severe effects for the cryptocurrency markets, if last month’s CPI is any indicator.

Investors took a collective deep breath as the time for the release of the inflation statistics ticked down. The global markets remained calm, but as many prominent crypto trading analysts had hinted at the start of the week, an announcement—positive or negative—would be said to have a significant impact on the price of digital assets.

The United States Federal Reserve will be under even more pressure to raise interest rates as a result of the inflation statistics, which was much higher than expected.

More Pressure

Since Bitcoin has so far been unable to act as an inflation hedge, it has experienced a considerable loss in value this year, plummeting by around 72%. Along with other risk assets, Bitcoin has been severely impacted by the Fed’s monetary policies because it has always existed in a low-interest rate environment.

The Federal Reserve would be able to pull off a soft landing, so avoiding a recession while significantly raising interest rates, according to strong job numbers that were reported last week. Despite the fact that interest rates have been sharply climbing, this was the case.

Crypto traders and investors were heavily shorting Bitcoin and other cryptocurrencies before to the long-awaited data’s release because netflow to exchange-traded funds that give investors exposure to short Bitcoin reported roughly $15 million in inflows in only one day.

Source: Arcane Research

The founder of Eight Global, Michal van de Poppe, stated that the CPI will determine whether or not Bitcoin succeeds. The support level of $19.5K and resistance level of $19.8K present a significant test for BTC. Depending on the CPI, BTC is anticipated to experience a significant decline.

Related Reading | Glassnode: Bitcoin LTHs Who Bought During 2017-2020 Aren’t Selling Yet

Featured image from Shutterstock, charts from TradingView.com and Arcane Research

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If Ethereum Falls Below $1,000, Here’s The Next Support

Early in June, Ethereum fell below the $1700 demand zone, and the king of altcoins had no immediate plans to recover. The $1000 band of support has been held for the past month, while the $1300 resistance has not yet been broken.

Ethereum Ranging Between $1,000 to $1,200

Although Ethereum seemed to establish a range, it was probably just imitating Bitcoin. The king coin also established a range, and it would need perseverance to traverse the markets without suffering a great deal of loss.

 

ETH/USD hovers around $1k. Source: TradingView

Since Ethereum initially began trading on Binance in 2015, there have been two primary ascending lines on the weekly timescale. Prior to the price falling below $1,500, the white line served as support and the yellow line served as resistance. To further emphasize the relevance of the present price in relation to earlier market valuations, the 200-week moving average line (in light blue) is also shown.

In a scenario where price moves in favor of the bulls, the price would rise over the MA200, which is located at $1200, and then rebound above the resistance zone between $1300 and $1500 before consolidating above $1700 and breaking the white trendline.

However, it appears to be a challenging mission given the uncertainties in the macro picture brought on by the potential for a recession and a lack of liquidity.

Related reading | Uniswap Reports Phishing Scam, As UNI Records 10% Profit In 7 days

On the other hand, reaching the horizontal support at $500 (in green) will not be out of the question if the bears can force the price below the support zone at $880-$1000.

The volume of trades for the past month has been higher than either April or May on their own, and it has been fairly stable in recent weeks. This demonstrated that long-term bulls and bears were interested in where ETH was trading. $1000 would be a crucial area for Ethereum buyers to defend because it has psychological significance as well.

Active Addresses Hit 2-year Low

According to the July 12 State of the Network newsletter from Coin Metrics, the quantity of monthly unique active addresses on the Ethereum blockchain has fallen to its lowest level since June 20, 2020.

The number of active Ethereum addresses specifically increased in late 2021 and early 2022, peaking at roughly 9 million in late March 2022. The number has since fallen to as low as 6 million, the lowest level in the previous two years.

Source: Coin Metrics Charting Tool

When Ethereum’s total number of unique active addresses per month surpassed 13 million in May 2021, the second-largest cryptocurrency by value’s price skyrocketed to a record-breaking high of nearly $4,000.

Related reading | TA: Ethereum Breakdown Looks like the Real Deal, $1K Is The Key

Featured image from Unsplash, chart from TradingView.com

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Bitcoin Bound To Bounce Back, Rockefeller Exec Says

Rockefeller International’s Managing Director and Chairman, Ruchir Sharma, argues that Bitcoin (BTC) is really a brilliant concept. One that has been destroyed by excessive speculative fervor and easy access to cheap capital.

Bitcoin Rebound Is A Matter Of Time

Sharma, a New York Times bestselling author and former emerging markets investor at Morgan Stanley (MS), predicted that bitcoin could experience a comeback similar to that of Amazon. Amazon’s value fell by about 90% during the early 2000s dot-com collapse but increased by more than 300 times over the course of the following 20+ years.

Although Sharma agrees that there may be more turbulence for bitcoin and the larger world of digital assets over the next months, this may also serve to remove weak players from the market. Some claim that has already occurred.

According to him, Bitcoin is still “caught up in this speculative mania,” and is still indicating a partial worldwide collapse. He brought up the Amazon incident again, noting that it took the company some time to recover. The shares of the online store needed some time to match and surpass its frothy 1999 level.

Reltaed reading | TA: Bitcoin Price Trims Gains, Key Breakdown Support Nearby

The early 2000s dot-com bust led to a huge decline in the value of Amazon’s shares. However, during the course of the following 20 years, the value of the shares was able to increase by a factor of more than 300.

He noted:

“I’m not willing to call the [market] bottom as of yet on bitcoin and cryptocurrencies. The U.S. bear market regime, which is the driver of risk appetite around the world, is still very much in play.”

As a result of the continuous slide in U.S. stocks, Sharma also forecasted severe drops in Bitcoin and other digital assets during the ensuing six months. He made the point that during bear markets, which continue for about a year, stocks frequently decline by 35%. During this bear market that has only been going on for less than a year, the S&P 500 has only fallen by 20%.

BTC/USD slides below $20k. Source: TradingView
Reliance On Greenback May Stop

Sharma is in favor of a monetary system that is not dominated by the US dollar. He said that although there hasn’t been a currency that can replace the dollar, bitcoin might be the solution.

“The dependence on the U.S. dollar, in general, cannot continue. There is a need for having another currency out there with some transactional need, which is a bit more stable in value. Three to five years from now, hopefully BTC will emerge as a more stable asset.”

Sharma mentioned the Federal Reserve’s moves as well, saying that he didn’t foresee the risk appetite opening up just yet.

Related Reading | Bitcoin On-Chain Data: Miners Deposit Big To Derivatives Exchanges

Featured image from iStock photos, charts from TradingView.com

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Ethereum Gas Fees Falls To Record Low, Price Consolidates Around $1,000

After reaching a level last seen in November 2020, the average Ethereum gas fee is now below $1.

Ethereum Gas Fees Falls

The Ethereum network experienced transaction fees as low as 69 cents on Saturday, which has not happened in the previous 19 months. The following day, gas prices reached $1.57 or 0.0015 ETH, which is equivalent to December 2020’s numbers. Transaction costs on the network today ranged from 20 cents to merely 20 cents, with 20 cents being the highest.

Gas prices in the Ethereum ecosystem ranged from $0.01 to $0.10 from July 2016 to May 2017. Users are now assessed a substantial cost; in May 2021, average transaction fees reached $69 per transaction. The highest gas price ever observed was $196.683 in May 2022.

Notably, the Ethereum blockchain has struggled to become widely used, much to the chagrin of users, due to the high cost of gas or network fees, payments necessary to complete a transaction on a blockchain. NFT holders are seen profiting from the decline as the numbers dwindle.

Source: Bitinfo charts

DappRadar reports that 50,466 people have traded their assets in OpenSea, up 10.14 percent from the previous day. At the time of writing, the largest NFT market’s trading volume increased by 34.18 percent to $15.92 million.

All of the top 20 collections, led by Ethereum Name Service, DopeApeClub, God Hates NFTees, Bored Ape Yacht Club (BAYC), and Mutant Ape Yacht Club (MAYC), were transacted within Ethereum, according to data from DappRadar.

Related reading | TA: Ethereum Close Below $1K Could Spark Larger Degree Downtrend

Price Slumps Further

The analysis of the price of ethereum is bearish due to consolidation near $1,050 and rejection of further recovery. As a result, ETH/USD is prepared to decline even further and surpass the $1,000 local support. After that is finished, the prior swing low at $900 should be challenged the following week.

The decline approached the $1040–$1000 area that serves as a close support and was accompanied by a sharp increase in demand pressure. The numerous smaller price rejection candles at this point represent attempts by sellers to break through this support that were unsuccessful.

Therefore, the renewed positive momentum could encourage buyers to again attack the overhead barrier of $1260, providing ETH holders with a chance for a recovery.

ETH/USD consolidates above $1k. Source: TradingView

At the start of the week, a significant new swing bottom was established in the price movement of ethereum. After falling by more than 21%, the price of ETH/USD hit a new low at $1,000.

From then, a swift upward reaction continued to the $1,115 level, where Friday’s rejection of further recovery was observed. Following sideways consolidation, lower local highs and lows were set.

Since then, the $1,050 level has functioned as the main trading range, with this morning’s denial of further gains. As a result, ETH/USD is prepared to drop even more and try to surpass the current low of $1,000.

If the traders continue to be persuaded by the sellers to break through the bottom support, the next decline could drive the price of ETH down by 12.56% to $880.

Related reading | Ethereum (ETH) Bends Toward $1,000 As Doubt Fills Crypto Markets

Featured image UnSplash, chart from TradingView.com

 

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Bitcoin Stagnates As Whales Continue To Dump

Since hitting an all-time high of $69,000 in November 2021, the price of Bitcoin has been declining. The current decline resulted in a low of $17,622 in June. A long lower wick was produced by the subsequent bounce.

The bounce confirmed the $19,200 horizontal area’s worth of support. The region had previously served as resistance during the all-time high of 2017 and then again in January 2021. It is now anticipated to offer support.

Bitcoin Stuck Below $20k

Since crashing through that crucial threshold last Tuesday, the largest cryptocurrency has been unable to surpass $20,000. Bitcoin has stayed above $18,000, the lowest it reached during the trough of a selloff in mid-June, even if it is still trading at less than one-third of its all-time high, which was above $69,000 in November 2021.

Bulls tried to drive the currency back up the chart and towards $22,000, but a strong sell-off brought it down to $19,000 instead. The important support level for the coin was $17,000, and if bears continued to press their attacks, BTC may be able to move higher in the ensuing trading sessions. The market capitalization of all cryptocurrencies is currently $914 billion, up 0.3% over the previous day.

BTC’s price on the four-hour chart was $19,000. Prior to making an attempt to recover on the chart a few weeks ago, the BTC/USD pair traded at the same level. Resistance for BTC first appeared at $22,000 and later at $20,000.

The $22,000 level has presented BTC with significant resistance, and the coin has had difficulty trading above it for a lengthy period of time.

If the present price trend for BTC holds, $17,000 will be the next very soon.

BTC/USD had a sharp decline in trade volume, and the bar on the chart turned red, signifying bearishness. Selling pressure has dominated the market.

However, the overall picture is still negative as there are no signs of tightening financial conditions by central banks in the equity markets. After failing a feeble ascent upward last week, BTCUSD is still below the 200-week average on the weekly charts.

A historical quirk, the RSI on the weekly charts is still oversold. Unfortunately, this does not indicate that it is now a better moment for the bulls to enter. In theory, a continued transition from the extreme to the norm would indicate a buy signal.

BTC/USD Slides below $20k. Source: TradingView

The second quarter of 2022 saw bitcoin’s worst performance in eleven years. Investor Michael Bury, who correctly forecasted the 2007 mortgage crisis, acknowledges that BTC and stocks are only in the middle of a bear market cycle.

The current collapse of the cryptocurrency market, according to Changpeng Zhao, CEO of cryptocurrency exchange Binance, is a favorable time to invest in bitcoin. According to him, traders who can persevere through the current bear market will see their investments grow during the following bullish phase.

Additionally complicating issues are the absence of institutional investor demand, international restrictions, and the collapse of critical support levels.

Related reading | Bitcoin Struggles At $19K, Is $17K The Next Target?

Whales Dump

According to data from cryptocurrency on-chain company Glassnode, the weekly moving average number of distinct Bitcoin addresses at a loss peaked on July 3, 2022, at 18.8 million. According to data, the present massacre has caused the average Bitcoin holder to suffer their greatest monthly loss since 2011.

Number of Addresses in Loss. Source: Glassnode

According to analysts at CryptoQuant, the Whale Ratio measure, which shows the selling tendencies of big wallet holders, predicts that the price of bitcoin will shortly bottom out. The top 10 inflows of bitcoin to exchanges are divided by the total daily inflows to arrive at the whale ratio indicator. High values of the measure reflect changes in price.

The analyst pointed out that whales are quickly transferring their Bitcoin holdings to cryptocurrency exchanges and suffering significant losses.

Related reading | TA: Bitcoin Remains In Downtrend, What Could Spark Sharp Upside

Featured image UnSplash, chart from TradingView.com

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Ethereum Loses Steam As Exchange Supply Spikes

Ethereum (ETH) is once again losing momentum after exhibiting a positive bounce the previous week. At the time of publication, ETH has a market valuation of $125 billion and is currently trading 9 percent lower at $1032.

The second-largest economy in the world is unmistakably losing strength, and if it cannot maintain $1,000, it may go as low as $700 or even lower.

Ethereum Falls Below $1k

Over the past few hours, the price of ethereum has deviated from a key level of support and fallen under $1,000. This is why more selling pressure might cause a downturn below $900 or even lower.

To have a chance of refuting the dismal view, the second-largest cryptocurrency by market cap needs to retake $1,100 as support.

Ali Martinez, a market analyst, reveals some important on-chain statistics to look out for! Martinez stated that there has lately been a significant increase in the supply of ETH on the exchanges, citing statistics from Glassnode. He stated:

“More than 200,000 $ETH. worth over $200 million, have been sent to known cryptocurrency exchange wallets over the past five days.”

Source: Ali Martinez

The number of ETH addresses that have experienced losses as a result of the current correction has also increased significantly. This can result in another sell-off. According to Ali Martinez:

“Ethereum is at risk of a steep correction. Transaction history shows that nearly 468,000 addresses with more than 7 million #ETH are now underwater and could soon start exiting their positions. A spike in selling pressure could trigger a downswing to $700 or even $600.”

ETH/USD trades above $1k. Source: TradingView

Related reading | TA: Ethereum Key Indicators Suggest A Sharp Drop Below $1K

Ethereum Whales Continue To Accumulate

Despite the current chaos in the price of ETH, whales have persisted in demonstrating their might with sporadic accumulations. Santiment, on-chain data source, noted:

“Ethereum shark and whale addresses (holding between 100 to 100k $ETH) have collectively added 1.1% more of the coin’s supply to their bags on this -39% dip. Historical evidence points to this tier group having alpha on future price movement”

Source: Santiment

As of late, the state of the world economy and market circumstances appears dire. Recent figures show a significant decline in consumer confidence in the market, which could increase selling pressure on American equity.

The ripple effects can persist further because the cryptocurrency market is already seeing a more severe correction.

Related Reading | Why Ethereum Could Trade At $500 If These Conditions Are Met

Featured Image from Pixabay and Chart from tradingview.com, Santiment, Glassnode

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Fed Announces Inflation Warnings As Bitcoin Whales Remain In Wait Mode

Over the past few hours, the price of bitcoin has deviated from a key level of support and fallen below $19,000. The transaction history reveals that many addresses purchased Bitcoin for more than $20,000. These market players would soon liquidate their holdings to prevent further losses, which would set off a decline toward $16,000

Inflation Warnings Affect Bitcoin Price

Due to major inflation worries and rate hikes indicated by central banks, particularly the US Federal Reserve, BTC has almost lost half of its value over the previous month.

Bitcoin’s market valuation has fallen from $1.27 trillion in November 2021 to under $366 billion at present.

Jerome Powell, the chairman of the Federal Reserve, reaffirmed the Fed’s commitment to raising interest rates in order to reduce inflation. He stated during the ECB meeting that the challenge of inflation was more concerning to him than the potential for rising interest rates to cause the U.S. economy to enter a recession.

“Is there a risk we would go too far? Certainly, there’s a risk,” Powell said. “The bigger mistake to make – let’s put it that way – would be to fail to restore price stability.”

BTC/USD falls below $20k. Source: TradingView

Powell argued that the Fed needs to quickly raise rates because a gradual hike may give consumers the impression that increased commodity prices would not go away. He said that rate increases might be lessened before the next year.

Related reading | Doom To Fail: Tether Shorts Pile In As Hedge Funds Seek To Profit From Crypto Winter

Following Powell’s remarks, U.S. equity market futures declined, with those for the S&P 500 dropping 1.59% and those for the tech-heavy Nasdaq 100 losing 1.9%. Asian markets were down, with the Asia Dow index and Japan’s Nikkei 225 both down 1.54%.

Data Suggests Whales Are Waiting

On-chain data on CryptoQuant suggests that most traders are awaiting the next significant price decline. The price anticipation appears to be for a short-term opportunity, though.

On-chain data also implies that big whales are waiting for a good opportunity to accumulate cryptocurrencies, not only tiny and average traders. Data shows that, interestingly, whales’ holdings in Bitcoin are not now growing.

This demonstrates unequivocally that the whales are awaiting a better opportunity. Whales’ holdings between 100 and 1,000 and between 1,000 and 10,000 Bitcoins currently exhibit a flat line.

Related reading | Bitcoin Slides Under $20K – Another Collapse In The Offing?

Featured Image from Pixabay and Chart from tradingview.com

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“Buy The Dip” Sentiment Fails To Save Crypto Market, New Data Reveals Why

Since crypto prices have fallen to their lowest point, now is the ideal time to “Buy-the-Dip.” But during these brief price declines, traders appear to be shorting cryptocurrency more than they are buying it.

“Buy-the-Dip” Sentiments Does Not Stop Crypto Shorting

More short sales or shorting occur in altcoins than in bitcoin. In the past day, short holdings in Bitcoin (BTC) have averaged roughly 51% across exchanges, while short positions in altcoins have averaged about 55%.

BTC/USD hovers around $20k. Source: TradingView

Santiment, an on-chain analytics tool, states that data on the average funding rate for Bitcoin and altcoins relative to the price of bitcoin shows that traders continue to short altcoins at every minor decline. The long/short ratio for Bitcoin, in contrast, is unchanged despite price swings.

“As prices gradually fell on Sunday, traders have shown that though they may proclaim to be buyingthedip, they are shorting more on these mini drops. Interestingly, this only applies to altcoins right now, indicating that Bitcoin is being flocked to as the safe haven.”

According to Coinglass data, traders kept shorting crypto on Monday. In the last 24 hours, a $25 million liquidation of Ethereum (ETH) witnessed 56 percent shorts. Polkadot (DOT), Solana (SOL), XRP, Cardano (ADA), and BNB, meanwhile, saw 55 percent, 59 percent, 63 percent, 67 percent, and 53 percent shorts.

Related reading | Bitcoin Perpetual Open Interest Suggests Short Squeeze Led To Crash

Bitcoin and Altcoin Short Selling. Source: Santiment

It’s interesting to note that in the past 24 hours, short positions in Tether (USDT) have increased by 85% across exchanges. Some short sellers think that Chinese real estate brokers back the majority of Tether’s assets in commercial paper. Since the previous month, USDT has experienced significant redemptions, causing its market cap to drop close to $66 billion.

Amidst a dim market outlook, hedge funds are also progressively shorting the U.S. dollar-pegged stablecoin Tether (USDT).

Liquidation OF Altcoins Rises Amid Short Selling

Liquidations are also increasing as traders continue to short altcoins. Altcoins that were actively traded in the morning are currently in the negative. Due to a recent increase in liquidation, the price of Ethereum (ETH) has decreased by around 4% during the past 24 hours. Other altcoins have also given up gains and are currently declining.

Related reading | Doom To Fail: Tether Shorts Pile In As Hedge Funds Seek To Profit From Crypto Winter

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Tron Falls Sharply As Sun Scrambles To Save Stablecoin

Tron price momentum faded over the weekend, and the price has dropped by more than 40% since then. The cryptocurrency is presently having difficulty gaining traction.

Tron Falls AS USDD  Depegs

TRX has dropped 19% and is now trading at $0.05, its lowest level in 15 months. In the last 24 hours, the token has also been the worst performer among the top 50 cryptocurrencies.

The token’s weakness follows the loss of the USDD algorithmic stablecoin’s dollar peg, despite founder Justin Sun’s repeated efforts to keep the peg.

In the last 24 hours, the token’s entire market valuation has dropped by nearly 1% to $701.4 million. The token has garnered comparisons to Terra’s UST stablecoin, which vanished in May due to its algorithmic nature.

USDD/USDT breaks dollar peg. Source: TradingView

Fear began as soon as the USDD’s 1:1 peg to the dollar was lost. TRX hasn’t been able to reverse the downward trend since then, plummeting by more than 40% in less than a week. TRX may face tremendous sell pressure to close the gap as long as USDD is below one dollar.

TRX has found support at the $0.05 level, from which it has bounced higher. TRX’s resistance is at $0.057, and given the current fundamentals, it doesn’t appear likely that the trend will shift.

Related reading | TRON Has a Record-Setting Month

Justin Sun Scrambles To Save USDD

However, Tron, like Terra, is putting billions of dollars behind the coin. Because USDD is not as large as UST, which was worth roughly $20 billion at its peak, crypto specialists think that it will not suffer the same fate.

USDD had recently been changed by Tron’s Sun to strengthen collateralization and make it less vulnerable to a crash like Terra.

This week, Tron spent over $700 million on the open market to sustain the USDD peg. Justin Sun also stated that a $2.5 billion fund would be set up to help TRX.

Tron has purchased TRX on multiple occasions to support the token, most notably withdrawing $948 million ($47 million) from Binance. The Tron DAO has made a number of withdrawals from Binance and has also used its USDC assets to purchase more tokens.

Tron has also announced a mining pool with Curve Finance and Convex Finance, which is intended to attract yield-hungry traders with an estimated APR of 96.25%.

Despite Justin Suns’ assertions that the USDD is unduly collateralized, the market does not appear to agree. The trend for TRX is likely to be negative as long as this continues, and the next significant support is identified at $0.040.

Related reading | Why TRON Has Seen a 45% Hike in Total Value Locked (TVL)

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Bitcoin Miners’ Exchange Flow Rises To Seven-Month High Amid Bloodbath

Bitcoin mining profitability has plummeted by more than 75% from the market peak, and is now at its lowest level since October 2020.

Bitcoin Price Plummets Further

Bitcoin’s price plummeted to a 52-week low of $20,800 on Wednesday, down from an all-time high of $68,788 by more than 70%. Despite the fact that the price has already returned above $21,000, important market indications indicate that bears still have a strong grip on the current market.

The Bitcoin Miners to Exchange Flow, a metric that measures the amount of BTC transferred from miners to crypto exchanges, hit a seven-month high of 9,476. The increase in exchange flows suggests that miners are selling their BTC in anticipation of a price drop.

BTC miners’exchange flow. Source: Glassnode.

Related article | Exchange Inflows Ramp Up As Crypto Investors Clamor To Exit Market

Miners Actions Signals Market Sentiment

BTC miners’ activities often mirror broader market sentiment, as they typically sell BTC to avoid losing money on their mining payouts. The large drop in mining profitability explains the increase in Bitcoin miners selling activity.

Mining profitability has plummeted by more than 75% since its peak, and Bitcoin’s hash price is at $0.0950/TH/day, the lowest since October 2020.

BTC/USD falls to a 52-week low. Source: TradingView

The netflow of miners to exchanges has also improved. When the miner netflow is positive, it means that more coins are being transmitted to exchanges than to individual wallets. This type of activity indicates that miners are negative on the price and are feeling pressured to sell.

With the price of BTC falling below $21,000, many BTC mining rigs have become unprofitable and may be shut down if the price does not recover. As the whole market value went below $1 trillion, the rest of the crypto market followed BTC’s price behavior.

BTC has gone through a number of bull cycles in the last decade, each followed by an 80%-90% drop from its peak. The BTC price, on the other hand, has never gone below the previous cycle’s all-time high. BTC is currently trading at its 2017 high of $19,783, and any sell-off from here might drive it back into 2017 territory.

Related article | TA: Bitcoin Shows Signs of Recovery, $23K Presents Resistance

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Bitcoin Consolidation Uninspiring, But Run To Near $33k On The Cards

The spring is being compressed further as Bitcoin swings continue to diminish. Since the commencement of active trading in New York, the lower bound of the trading range has shifted to $29K, where the BTCUSD has found support. The top bound of the constructed triangle has advanced to $30.5K, up 1.8 percent from current prices of $30K in the last 24 hours.

Bitcoin Consolidation Uninspiring

As range adherence continued, Bitcoin (BTC) momentarily returned to $30,000 before the May 25 Wall Street open.

While it may appear dull at first glance, Michal van de Poppe saw Bitcoin on short periods as a source of renewed interest, predicting a run to near $33,000 next.

He told his Twitter followers:

“Bitcoin broke through $29.4K and ran towards the next resistance zone, if we hold $29.4K, we’ll be good towards $32.8K. Finally.”

The price of Bitcoin is consolidating, which is equally perilous for bulls and bears. Both gain liquidity and become accustomed to existing prices over time.

On a market-cycle level, there’s a good likelihood that the present consolidation will end with a collapse of the lower boundary and the liquidation of stop orders, confirming the initial downside momentum.

Related reading | Investors May Expect Downside For Bitcoin And Ethereum Market For The Next 3 Months

The bearish prognosis is fueled by monetary policy tightening and declining economic development, which causes retail investors to withdraw funds from bitcoin in favor of spending. It doesn’t help that people’s hopes of getting rich quick with cryptocurrencies aren’t coming true, as bitcoin is now valued the same as it was in early 2021.

BTC/USD trades below $30k. Source: TradingView

Investing in the business is becoming more sophisticated, moving beyond naive buy-and-hold strategies. Investors are pulling money out of bitcoin and putting it into blockchains that enable smart contracts, such as Cardano and Polkadot, according to CoinShares. Last week, crypto funds lost $141 million in net capital outflows.

The ECB warned that the high correlation between cryptocurrencies and stock markets is common during times of economic hardship, and that digital assets will no longer be allowed to diversify investment portfolios.

Related reading | Institutional Investors Seek Safe Haven In Crypto Products Amid Market Uncertainty

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JPMorgan: Bitcoin Is Undervalued; Says Fair Price Is 28% Higher

Despite the crypto bear market, JPMorgan believes bitcoin is grossly undervalued. The bank today repeated its appraisal of bitcoin’s fair worth of $38,000, which it awarded the cryptocurrency in February when it was trading around $43,400. This is almost a 28% increase over the current price of $29,757.

JPMorgan Gives Nod To Crypto As Alternative Asset Class

Cryptos have surpassed real estate as one of the bank’s favored “alternative assets” or assets that don’t fit into traditional categories like equities and bonds, according to a note released on Wednesday.

It stated that it still believes $38,000 is a fair price for bitcoin. That sum was 28% higher than bitcoin’s morning price of $29k.

The bank’s strategists, including Nikolaos Panigirtzoglou, wrote in the note:

“The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally.”

Related reading | Bitcoin Rejects Downside At $29k, Here’s Why This Is Good

However, JPMorgan warned that the steep sell-off in Bitcoin and other cryptocurrencies has been more than in other alternative investments such as private equity, private debt, and real estate. As a result, the bank believes that “digital assets” have greater opportunity for recovery than other alternative assets. The report read:

“We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.”

The rating represents a vote of confidence in the broader cryptocurrency market and bitcoin, which is presently selling at less than half of its all-time high of $68,721, The cryptocurrency market is dealing with the $50 billion collapse of algorithmic stablecoin TerraUSD and its sibling token LUNA, in addition to rising interest rates and the consequences from the crisis in Ukraine. The market capitalisation of all cryptocurrencies is now $1.2 trillion, down from $3 trillion in November.

Total crypto market cap stands at $1.2 Trillion. Source: TradingView

Despite the sector’s increased appeal, JPMorgan has reportedly altered Bitcoin and cryptocurrencies from a “overweight” to a “underweight” rating, implying that the bank is now less enthusiastic about the asset class and recommends a reduced exposure in an investing portfolio.

Related reading | TA: Bitcoin Price Moves Higher In Range, $30.6K Still Presents Resistance

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Bitcoin Rejects Downside At $29k, Here’s Why This Is Good

Today’s Bitcoin price analysis is positive, as a dip to $29,000 was met with solid support and rejection, indicating that additional downside is unlikely. As a result, BTC/USD is expected to rise further in the next days, most likely above the $31,000 resistance level.

Naturally, the psychological price of $30,000 for Bitcoin implies a solid purchase zone. We’ll look at why Bitcoin’s recent consolidation around $30,000 is a promising sign of future price increases.

Bitcoin Fall 57% From ATH

Bitcoin prices have fallen from a high of $69,600 to a current level of $29,350. The entire cryptocurrency market was destroyed by this 57 percent price decrease. As a result of the decreasing prices, a snowball effect began to occur, causing other crypto projects to be hit and sink even more.

The price range of $30,000 for Bitcoin is critical. Many large corporations bought Bitcoins at that price. Furthermore, as shown in Figure 2, Bitcoin prices historically consolidated around those precise positions before beginning an advance.

BTC/USD 1-day chart showing the consolidation area. Source: TradingView

For more than a week, bitcoin has been trading sideways, with the $31,000 mark acting as solid resistance. Meanwhile, significant support has been established at $29,000, signaling a clear consolidation region that must be overcome before the market can continue to develop.

The previous high was set at the same level as the previous low, signaling market hesitation. As a result, the recent $29,000 test could lead to another retest of the resistance.

Related Reading | Eight Consecutive Red Closes: Is Bitcoin Headed For A Recovery?

Will Consolidation occur?

If BTC prices happen to drop below $28,000 again, the next support area would be around $20,000. However, it is more likely that prices will increase from this Bitcoin price consolidation phase. The first target is around $35,000, or a 17% increase in prices. After that, prices should target the next psychological price of $40,000. From there, we might see a slight adjustment lower, but in the long term, prices should break higher. This would mark the official start of the uptrend.

In order for bitcoin’s price to establish a foothold at the bottom in the short term, according to Josh Olszewicz, head of research at investment management Valkyrie, volatility must reduce.

“We can look at things like the 200-week moving average, which is around $22,000. We can look at realized price, which is the average price of coins that have moved on-chain, which is around $23,800,” Olszewicz said on CoinDesk TV’s “First Mover” program. “This [movement to hit bottom] will probably take at least all of Q3, perhaps Q4 as well, if it were to happen this year.”

Other variables, like as the US Federal Reserve boosting interest rates, are also influencing bitcoin’s market performance, according to Olszewicz.

He speculated that institutional investors may be in the forefront of the downturn. The average size of on-chain transactions, according to Olszewicz, is in the tens of thousands of BTC.

Nonetheless, according to Olszewicz, ordinary traders continue to influence market movement more than institutional investors. Those learning about cryptocurrencies are now jumping in during this bear market to “test the waters” and “see if they can survive,” according to him.

Suggested Reading | Ripple (XRP) Plunges To $0.43 With Bears In Full Swing

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Investors May Expect Downside For Bitcoin And Ethereum Market For The Next 3 Months

The crypto markets have accepted the depegging of UST and the subsequent downward spiral of LUNA, both of which impacted the price of Bitcoin and the entire digital asset spectrum. According to a recent report by the Glassnode team, the Bitcoin market has been trading lower for eight weeks, making it the ‘longest continuous series of red weekly candles in history.’

Even Ethereum, the most popular altcoin, painted a similar picture. Bearish fluctuations damage returns and profit margins directly or indirectly.

To make matters worse, derivative markets forecast shows more declines in the coming three to six months.

Derivative Markets Hint At More Pain For Bitcoin

According to derivative markets, the prognosis for the next three to six months remains fearful of further fall. On-chain, the report stated that blockspace demand for Ethereum and Bitcoin has dropped to multi-year lows, and the rate of ETH burning via EIP1559 has reached an all-time low.

Glassnode calculated that the demand side will continue to face headwinds due to poor price performance, uncertain derivatives pricing, and extremely low demand for block-space on both Bitcoin and Ethereum.

The report explains:

Looking on-chain, we can see that both Ethereum and Bitcoin blockspace demand has fallen to multi-year lows, and the rate of burning of ETH via EIP1559 is now at an all-time-low.

Coupling poor price performance, fearful derivatives pricing, and exceedingly lacklustre demand for block-space on both Bitcoin and Ethereum, we can deduce that the demand side is likely to continue seeing headwinds.

Both Bitcoin and Ethereum’s price performance over the last 12 months has been disappointing. Long-term CAGR rates for Bitcoin and Ethereum have been impacted as a result of this.

Source: Glassnode

BTC, the largest cryptocurrency, moved in a roughly 4-year bull/bear cycle, which was frequently accompanied with halving events. When looking at long-term returns, the CAGR has dropped from almost 200 percent in 2015 to less than 50 percent as of this writing.

Related Reading | New Data Shows China Still Controls 21% Of The Global Bitcoin Mining Hashrate

Furthermore, Bitcoin had a negative 30% return over the short term, implying that it corrected by 1% every day on average. This negative return for Bitcoin is very similar to prior bear market cycles.

Source: Glassnode

When it comes to ETH, the altcoin performed far worse than BTC. Ethereum’s monthly return profile revealed a depressing picture of -34.9 percent. Ethereum likewise appears to be seeing diminishing rewards in the long run.

Furthermore, during the previous 12 months, the 4-year CAGR for both assets has dropped from 100% to only 36% for BTC. Also, ETH is up 28 percent per year, emphasizing the severity of this bear.

To make matters worse, the derivative market warned of future market declines. Near-term uncertainty and downside risk continue to be priced into options markets, particularly over the next three to six months. In reality, during the market sell-off last week, implied volatility increased significantly.

Total crypto market cap stands at $1.2 Trillion. Source: TradingView

The Glassnode analysis concluded by stating that the present bear market has taken its toll on crypto traders and investors. Furthermore, the Glassnode team emphasized that downturn markets frequently worsen before improving. However, ‘bear markets do have a tendency of ending’ and ‘bear markets author the bull that follows,’ so there is some light at the end of the tunnel.

Related Reading | TA: Bitcoin Price Stuck In Key Range, Why Dips Might Be Limited

Featured image from iStockPhoto, Charts from Glassnode, and TradingView.com

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Crypto starts week Positive, Bitcoin Bulls Prep For A Breakout

On Monday, the cryptocurrency and Bitcoin market turned positive, attempting to break out of its current downturn, with market capitalization rising 1.5% to $1.37 trillion. The largest cryptocurrency, Bitcoin , reached $30,554, up 1.2%.

Bitcoin Price Sheds Gains

The Bitcoin price’s downhill movement is becoming increasingly apparent. A rally towards $33,700 is possible.

For nearly two weeks, the Bitcoin price Fear and Greed indicator has been at high fear levels. Because more investors are afraid to invest in the present BTC price, this Index can be utilized as a contrarian positive indicator, allowing smart money to accumulate huge orders.

On the 6-hour chart, what was formerly deemed to be a confusing sideways market is now coiling into a very bullish pattern, indicating smart money involvement.

The price of bitcoin is creating a sideways triangle. From an Elliott wave standpoint, the lengthy sideways action justifies a wave B pattern. Since the initial countertrend rally on May 13th around $31,200, it has spent disproportionate time in the $30,000 zone. If the technicals hold, another countertrend profit-taking rise with targets of $33,700 and $34,000 will occur before significant bearish resistance returns.

A breach below wave A at $28,630 invalidates the bullish premise. If the bears succeed in breaking through this barrier, the next target might be $23,500, a 20% drop from the current BTC price.

The United States’ macroeconomic conditions aided the rise of crypto markets on May 23. President Joe Biden announced intentions to reduce trade tariffs with China before the market opened, bolstering investor confidence.

Related Reading | Eight Consecutive Red Closes: Is Bitcoin Headed For A Recovery?

Miners’ Stocks Up And Down

Bitcoin’s network difficulty is expected to decrease by 3.3 percent during its next automated readjustment this week, according to the latest projections. The drop will be the biggest since July 2021, and it’s apparent that Bitcoin’s slump has put miners’ profits in jeopardy.

Despite the fact that their wallets’ moves to exchanges touched a 30-day low on May 23, according to on-chain monitoring platform Glassnode, miners are not displaying indications of capitulation.

At the start of a new trading week, bitcoin miner stocks were up and down in equal measure.

Related Reading | Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000

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Ethereum Prepares For Ropsten Testnet Merge As Token Struggles To Hold $2k Support

The Ethereum 2.0 update is generating a lot of buzz and interest, and we’re getting closer to its launch than ever before.

Ethereum 2.0 Goes To Testnet

Testing for Ethereum’s long-awaited Merge is progressing, though not at the rate that many had hoped. Testing on Ropsten, Ethereum’s largest and primary testnet, which has the closest similarity to the mainnet, is the next key milestone in the Merge testing process.

Ropsten testing will be merged on June 8, according to Ethereum client developers. Although there is no official indication on when the Merge will take place on mainnet, it is expected to happen in the second part of this year.

On Monday, Ethereum DevOps developer Parathi Jayanathi submitted a pull request for the Ropsten testnet Merge configuration code, indicating that it is ready for implementation.

The Merge is Ethereum’s long-awaited upgrade, in which the current Ethereum Mainnet and the beacon chain PoS system will merge.

Because it has a comparable network structure to the Ethereum Mainnet, this testnet is considered the best replication. Developers may now perform realistic deployment testing before making changes to the mainnet.

The Ropsten testnet Merge will combine the proof-of-work (PoW) network with a new proof-of-stake (PoS) consensus layer testnet, with a May 30 launch date. It will simulate what will happen when Ethereum and the Beacon Chain merge and the network becomes a PoS network.

Related Reading | New Data Shows China Still Controls 21% Of The Global Bitcoin Mining Hashrate

Testing how the merge would work on Ethereum’s main public testnet would be one of the final assessments. As a result, the Ropsten public testnet is regarded as the most accurate clone of the Ethereum Mainnet, as it uses a similar network structure and allows developers to test their work in a live environment.

Online, community developers have expressed their enthusiasm for the testnet announcement. According to Preston Van Loon, an Ethereum core engineer at Prysmatic Labs:

Ropsten testnet is getting merged on June 8!

Merging Ropsten is a huge testing milestone towards Ethereum's mainnet merge later this year. 🎉 https://t.co/X7eLIMA72g

— prestonvanloon.eth @ Permissionless (@preston_vanloon) May 18, 2022

Price Fails To Hold $2K

ETH is dropping inside a falling wedge on a daily time frame (in yellow). It’s worth noting that the wedge bottom is lined with the $1700 horizontal support level (in green), which could signal a trend reversal.

As a result, if the bulls can hold the green zone, the price will be more likely to rise towards the $2450 level of static resistance. The price is more likely to begin a protracted regression phase if the bears continue to suppress the market and breach below the green support zone.

ETH is trading on dynamic support (in green) against Bitcoin, which has blocked additional price decreases four times in the past.

The world’s second-largest cryptocurrency, down 4.1 percent in the last 24 hours to US$1,974, has lost 48% of its value since 2022.

ETH/USD trades below $2k. Source: TradingView

And crypto investors who bought on November 16, 2017, when the Ethereum price was at an all-time high of US$4,892, will have lost just over 60% of their investment.

Ethereum’s market cap has decreased to US$236 billion from well over half a trillion dollars at its height, despite maintaining its number two position.

Related Reading | Bitcoin Indicator Hits Historical Low Not Seen Since 2015

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