TA: How Ethereum Close Below $2.3K Could Spark Larger Degree Decline

Ethereum remains in a bearish zone and it traded below $2,350 against the US Dollar. ETH price could accelerate lower if there is a close below $2,300.

  • Ethereum extended its decline below the $2,400 and $2,350 levels.
  • The price is now trading well below $2,400 and the 100 hourly simple moving average.
  • There is a crucial bearish trend line forming with resistance near $2,380 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could extend its decline if the bulls fail to protect the key $2,300 support zone.

Ethereum Price Remains At Risk

Ethereum started a steady decline from well above $2,500, similar to bitcoin. ETH traded below the $2,450 and $2,400 support levels to move into a bearish zone.

There was also a break below the $2,350 support zone and yesterday’s low. The price is now trading well below $2,400 and the 100 hourly simple moving average. Ether is managing to stay above the key $2,300 support zone. A low is formed near $2,304 and the price is consolidating losses.

An initial resistance is near the $2,350 level. The first key resistance is near the $2,380 level. There is also a crucial bearish trend line forming with resistance near $2,380 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

The trend line is near the 23.6% Fib retracement level of the of the recent drop from the $2,640 swing high to $2,304 low. The first major resistance is near the $2,400 level. The main resistance is now forming near the $2,450 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the of the recent drop from the $2,640 swing high to $2,304 low.

More Losses in ETH?

If Ethereum fails to clear the $2,380 and $2,400 resistance levels, it could continue to move down. An initial support on the downside is near the $2,320 level.

The main breakdown support is now forming near the $2,300 level. A downside break below the recent low and the $2,300 support level may possibly spark a major decline. In the stated case, ether price is likely to decline towards $2,150 in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is struggling to gain pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently near the 40 level.

Major Support Level – $2,300

Major Resistance Level – $2,400

Ethereum to $20,000? Factors Behind The Bold Call

Ethereum could reach $20,000 by 2025 according to a Finder’s panel.

Ethereum has since been gaining momentum, starting out at $1,000 at the beginning of the year and reaching an all time high of $4,196.63, according to Coin Metrics. Before losing steam and dropping down to its current price at $2,400. Clocking an average growth rate of 197.4% in 2021.

This massive run has given the coin a lot of popularity. Ethereum currently ranks as the second most popular coin behind Bitcoin.

Related Reading | Billionaire Tim Draper: Bitcoin Will Reach $250,000 By The End Of 2022

With so much support pouring out for the coin, investors in the coin have been very bullish on it. Lots of analysts believe that Ethereum is poised to overtake Bitcoin as the most popular coin in the market. So much technological advancements are being carried out on the blockchain that its use cases seem to be endless.

Impact Of DeFi and NFTs

The growing popularity of decentralized finance (DeFi) and NFTs have helped to push the popularity of Ethereum. Giving it more use cases that benefits the investors in the coin.

About 70 percent of the panel agreed that with DeFi and NFTs, Ethereum now has more use cases than Bitcoin.

John Hawkins, senior lecturer at the University of Canberra, went against the grain to say more use cases would not necessarily benefit the coin. He expanded on this by saying that Ethereum will most likely get dragged down with Bitcoin. Despite having more use cases.

Ethereum price chart

Ethereum price sits below $2,5000 | Source: ETHUSD on TradingView.com

With staking and yield farming with DeFi, investors have found another way to put their investments to work, while at the same time benefiting the network.

With Ethereum 2.0 on the horizon, developers are looking to replace the existing Ethereum blockchain with a new one. This will help to solve the current bottlenecks of the network. It will also increase the number of transactions being made on the network. Hopefully helping to reduce the exorbitant fees being charged for transactions when network traffic is high.

Ethereum Predictions By Finder’s Panelists

The Finder’s panel consisted of a number of prominent panelists. Present were Dr. Iwa Salami from the University of East London. COO of BitBull Capital, Sarah Bergstrand. Vishal Shah, CEO of Alpha5. Head Economist at ConsenSys, Lex Sokolin. Amongst others.

A good number of the panel seemed to agree that while the coin might not have much further to run this year, the next four years is going to see a massive run.

CEO Vishal Shah was on the more conservative side. He predicted that the coin would not be worth much more than it is now. Putting it at just $4,000 by 2025. Shah believes that Ethereum will continue to perform. But that the unlimited supply of the coin is a demerit to it. He also added that Ethereum was in a race with other protocols for the its usability profile. And that there are other faster and cheaper chains that will rival the coin in the future.

Related Reading | TA: Ethereum Price Holds Strong, Why Dips Remain Limited Below $1,850

Others did not see this as a befitting forecast. Citing the upgrades being done on the network, Sarah Bergstrand, Chief Operations Officer at BitBull, gave a price prediction of $100,000 per ETH by the end of 2025. A staggering forecast.

She believes that mass adoption of Bitcoin will be followed by mass adoption of Ethereum. Also that the upgrades being carried out on the network will help to push the price higher.

Dr. Paul Ennis put his prediction at $10,000 by the end of 2025. Stating that Ethereum is currently undervalued.

Dr. Salami went on to give the coin a $20,000 forecast by 2025.

This brought the average of the panel’s predictions to $19,842 per ETH by 2025.

Featured image from Blockchain News, chart from TradingView.com

Are These The 6 Richest People In The Crypto Industry ?

There’s a lot of money in the crypto industry, that much is for sure. And we’re at a stage in which there are projects that are advanced enough for their creators to have already reaped the benefits. And then, there’s Bitcoin. Early adopters and believers, extremely long-term hodlers, are sitting on a fortune. Who’s made the most money, though?

An extremely difficult question to answer. The pseudonymous nature of blockchain technology makes inquiries like this a tall order. There are wallets that nobody knows who they belong to and hold thousands of coins. There are billionaires that have announced investments, but nobody knows which wallets belong to them. Not everyone in the crypto industry is a public figure. Not everyone in the space wants attention.

Related Reading | Ethereum Foundation Vitalik Buterin Talks ETH Inflation Rate

Taking that into account, the Coin Bureau YouTube channel launched an investigation and reached credible conclusions. If we agree that the list is for entertainment purposes and heavily western-focused, we can have fun with it. So, let’s do that.

Who Are The Six Richest Persons In The Crypto Industry?

To make this fair, the Coin Bureau focused on people who hold most of their assets in cryptocurrencies. That makes people like Coinbase’s Brian Armstrong and MicroStrategy’s Michael Saylor ineligible, because most of their fortunes are tied to their companies. It also discards all the billionaires that have a small percentage of their fortunes in crypto.

So, now that the rules are clear, let’s get into it.

6.- Tim Draper and Max Keiser

Tied at number five, two very different Bitcoin believers. 

Tim Draper: This venture capital investor made the purchase of a lifetime when he acquired all of the Bitcoin confiscated from the Silk Road dark web marketplace. “The US Marshall service auctioned off 30000 BTC which landed in Tim’s wallet for 19 million Dollars.” Those are now worth close to $1B. Draper is not part of the crypto industry, but, practicing diversification he also holds Bitcoin Cash, XRP, and Tezos. 

Max Keiser: This broadcaster and filmmaker is the reason many people around the world know about Bitcoin. An early believer, “In a 2013 episode of The Keyser Report, Max announced that he had become a Bitcoin millionaire.” As per Coin Bureau calculations, that means he held 25K BTC. Assuming he continued to buy, and bought a modest 5K more, his holdings are now worth $1B.

5.- Vitalik Buterin:

Ethereum’s co-founder starred in a Twitter public fight previously covered by NewsBTC. Vitalik’s Ethereum wallet address has been known since late 2018 when he shared it over Twitter in response to criticism over Ethereum’s pre-mine.” This key figure in the crypto industry now holds 334K ETH, which at today’s prices is approximately $1.5 B.

4.- The Winklevoss Broders

It’s public knowledge, the Winklevoss twins invested part of their Facebook settlement in a then-new idea. The story goes as follows, “While on Holyday in Ibiza in 2013, Tyler and Cameron learned about Bitcoin and subsequently decided to buy 1% of all the BTC in circulation.” With that, they founded the Gemini exchange, a key component of the crypto industry. Coin Bureau estimated that each twin holds “between 2-3 billion dollars in cryptocurrency, mostly Bitcoin.

3.- Chris Larsen

One of the biggest criticism that the crypto industry wields against Ripple is the incredible amounts of XRP that its founders and the organization hold. Well, “the third biggest crypto billionaire is Ripple co-founder Chris Larsen who holds anywhere between 5.2 and 7.8 billion XRP.” 

It’s worth noting that, “All XRP allocated to Ripple’s founders is subject to a vesting schedulle that will last untill 2026, assuming the SEC doesnt succed in its case against Ripple, in which case Chis’s XRP  will be unsellable by law.” It looks the other way so far, though. And the market seems to be supporting this turn of events.

2.- Sam Bankman-Fried

Did you know that FTX’s Sam Bankman-Fried was in talks with Binance’s CZ to fund an exchange together before any of the two made it big? True story. Well, Bankman-Fried is the “founder of Alameda Research and the FTX cryptocurrency exchange.

Alameda Research made more money than god in an arbitrage trade. They figured out there was a premium hidden in Bitcoin’s prices in Japan. They bought in the U.S., sold in Japan, and made history. And a fortune. After that, “The FTX derivatives exchange is Sam’s second endevour, and it’s become one of the most popular crypto exchanges since it was founded in 2019.

A key part of the crypto industry, through FTX he’s helped launch very successful crypto projects. Plus, they have their own coin that has appreciated over time. Coin Bureau says, “Sam’s exact cryptocurrency holdings are not known, I estimate them to total anywhere between 5 and 10 billion dollars.

BNBUSDT price chart for 06/17/2021 - TradingView

BNB price chart on FTX | Source: BNB/USDT on TradingView.com

1.-  Changpeng Zhao

Even though CZ’s net worth is “listed at around 2 billion dollars,Coin Bureau investigated and made some controversial assumptions. First of all, after attending a crypto conference, “CZ subsequently decided to sell his apartment in Shanghai and go all-in on Bitcoin. If my calculations are correct this banked him anywhere between 50 to 100 thousand BTC.

The Bureau uncovered some articles in which CZ said that he likes to hold his fortune in crypto-assets, so they assume that he’s still holding to that. Years later, when Binance launched their own coin, 40% of BNBs initial minting of 100 million was allocated to the founding team. Again, the Bureau assumes he still has them, “CZ’s BNB holdings alone could easy be over 10 Billion Dollars at today’s prices.”

Related Reading | Changpeng Zhao Makes Super Bullish Case for Binance Coin

And that’s it, that’s their list. Do you think they forgot anyone in the crypto industry? Aren’t there even bigger whales in China? Are all of these people small potatoes compared to Satoshi Nakamoto himself? Let’s just take the list as a starting point and build on it.

Featured Image by Jp Valery on Unsplash - Charts by TradingView

TA: Ethereum Plunges 5%, Can Buyers Save The Key $2.3K Support?

Ethereum extended its downside correction below $2,500 against the US Dollar. ETH price is recovering higher, but it is now trading below the 100 hourly SMA.

  • Ethereum failed to stay above the $2,500 support zone and extended its decline.
  • The price is now trading well below $2,500 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $2,460 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to face a strong selling interest near the $2,460 and $2,500 levels.

Ethereum Price Extends Losses

Ethereum topped near the $2,640 level and started a fresh decline, similar to bitcoin. ETH even struggled to stay above the $2,550 support zone and moved into a bearish zone.

There was a clear break below the $2,500 support zone and the 100 hourly simple moving average. Ether even declined below the $2,400 level and it traded as low as $2,353. It is now correcting losses and trading above the $2,400 level.

The price recovered above the 23.6% Fib retracement level of the of the recent decline from the $2,638 high to $2,353 low. On the upside, an initial resistance is near the $2,450 level.

There is also a major bearish trend line forming with resistance near $2,460 on the hourly chart of ETH/USD. The main resistance is now forming near the $2,550 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the of the recent decline from the $2,638 high to $2,353 low.

Ethereum Price

Source: ETHUSD on TradingView.com

A close above the $2,500 level and a follow up move above the $2,550 level is needed to start a steady increase in the near term.

More Losses in ETH?

If Ethereum fails to clear the $2,450 and $2,500 resistance levels, it could continue to move down. An initial support on the downside is near the $2,400 level.

The first major support is near the $2,350 level. A downside break below the recent low and the $2,350 support level may possibly push the price towards the $2,300 level. Any more losses might call for a move towards the $2,250 level in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently rising towards the 50 level.

Major Support Level – $2,350

Major Resistance Level – $2,500

TA: Ethereum Trims Gains, Why $2,500 Is The Key For Fresh Rally

Ethereum corrected gains from the $2,640 zone against the US Dollar. ETH price is now trading above a major support at $2,500 and the 100 hourly SMA.

  • Ethereum failed to clear $2,650 and started a downside correction.
  • The price is now trading above $2,500 and the 100 hourly simple moving average.
  • There is a key declining channel forming with resistance near $2,550 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to start a fresh increase as long as it is above the $2,500 level.

Ethereum Price Holding Key Support

Ethereum gained pace above the $2,600 resistance and extended its upward move. However, ETH failed to surpass the $2,650 resistance. A high was formed near $2,638 before it started a downside correction.

There was a break below the $2,600 and $2,550 support levels. Ether price declined below the 50% Fib retracement level of the of the recent increase from the $2,461 swing low to $2,638 high. The price even traded below the $2,520 support.

It is now trading above $2,500 and the 100 hourly simple moving average. It is holding the 76.4% Fib retracement level of the of the recent increase from the $2,461 swing low to $2,638 high.

Ethereum Price

Source: ETHUSD on TradingView.com

There is also a key declining channel forming with resistance near $2,550 on the hourly chart of ETH/USD. A clear upside break above the channel resistance and $2,550 might start a fresh rally. The next key resistance is near the $2,600 level. The main resistance is still near $2,640 and $2,650. Any more gains could open the doors for a larger increase towards $2,750.

Downside Break in ETH?

If Ethereum fails to clear the $2,550 and $2,600 resistance levels, it could continue to move down. An initial support on the downside is near the $2,510 level.

The first major support is near the $2,500 level and the 100 hourly SMA. A downside break below the 100 hourly SMA could push ether price towards the $2,450 support zone. Any more losses might clear the path for a drop towards the $2,400 level in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently close to the 50 level.

Major Support Level – $2,500

Major Resistance Level – $2,550

Michael Saylor Clarifies His Company’s Bitcoin Strategy On US’s National TV

The dedication MicroStrategy’s CEO puts into Bitcoin raises questions even in the crypto sphere. Imagine how people in the traditional financial world feel. Michael Saylor joined CNBC’s “Fast Money” talk show to discuss his controversial game plan. The hosts asked though questions and the CEO answered them with ease.

What follows is a play-by-play narration of the game.

 

Of course, Saylor started by defining the intangible asset, “The world is waking up to the fact that Bitcoin is digital property on an open monetary network. And that’s pretty profound because it’s going to spread to billions of people around the planet. It’s digital gold on a big tech network.

Related Reading | Saylor Reacts To Taunts That Bitcoin Has Become The MySpace of Crypto

Some people wonder if MicroStrategy abandoned its software business. If the company is now it’s some kind of Bitcoin ETF. According to the CEO, they have two strategies and one of those is to buy Bitcoin. “MicroStrategy is the first company to do a dutch auction or share repurchase to buy Bitcoin. We’re the first company to do a convertible debt offering to buy Bitcoin. Last week, we became the first company to do a senior secured debt offering to buy Bitcoin.” 

NewsBTC already covered their latest play, and Saylor clarified that they will use the new funds, “either to buy Bitcoin, or to retire debt, or for general corporate purposes.” MicroStrategy wants to have all of its options open.

What Do MicroStrategy’s Shareholders Think?

When asked about his investor’s opinions on his obsession with Bitcoin, Saylor once again clarified the situation. Before this new chapter, MicroStrategy’s stock was trading at about $120 a share. They were a profitable company, but cash was a liability on their balance sheet. They shapeshifted, rotated their shareholders base, “and transformed ourselves into a company that’s able to sell enterprise software and to aquire and hold Bitcoin.” 

As for the results of this move, he estimates that the power of their brand increased by a factor of 100. The last quarter was the best that the software side of the company’s had in the last 10 years. The core business is up 10%. Employees and shareholders are happy.

What Does Michael Saylor Think About Inflation?

Over the past 12 months we’ve all been waiting for inflation” According to Saylor, investors say that Bitcoin is up 330% and gold is up 7% in that period. Bitcoin is outperforming gold by a factor of 50. Early Bitcoin believes like Paul Tudor Jones are doubling or tripling their allocation, “I’m surprised they’re not increasing their allocation by a factor of ten, because Bitcoin is fifty times better.”

Is Michael Saylor a Bitcoin Maximalist?

When asked about Bitcoin Maximalism and diversification, Saylor gave them a masterclass in crypto assets:

Bitcoin is the highest and most dominant digital property network. Think of it like giant blocks in cyber-Manhattan. Then you have digital currency, that’s like Tether, and stablecoins, they want to be money markets in cyberspace. They’ll be like the CBDC Dollars. Then you have digital applications, like Ethereum. Ethereum wants to dematerialize the JP Morgan buildings, and the banking stablishments, and all of the exchanges. There’s a place for all of these things if properly understood.

Even though there’s a place for every asset, “Bitcoin is made to last forever. High integrity. Very durable.” And that’s a quality you want if you’re building over it.

Microstrategy price chart for 06/16/2021 - TradingView

MicroStrategy price chart on Cboe BZX | Source: MSTR on TradingView.com

Why Buy A Share Of MicroStrategy And Not Just Buy Bitcoin?

Did anyone notice that MicroStrategy’s stock is now following Bitcoin’s rhythm on the charts? According to Saylor, his company offers two advantages. One, Microstrategy has the ability to sweep its software cash flow into Bitcoin. Two, they have the ability to raise debt financing. They can borrow a billion Dollars with zero percent interest. Your ETF will not be able to do that. 

Related Reading | Can Bears Force Michael Saylor To Sell His Bitcoin? Analyst Shared Bullish Theory

So yeah, he compared his stock to an ETF because they’re roughly in the same category. Some investors and funds just can’t buy Bitcoin. They’re able to buy MSTR and the highly anticipated Bitcoin ETF, though. 

Featured Image Glenn Carstens-Peters on Unsplash - Charts By TradingView

Nearly 1% Of Bitcoin Supply Is Now Wrapped In Ethereum

As wrapped Bitcoin approaches 189,000 BTC, the leading form of BTC on Ethereum now makes up for nearly 1% of the total supply of the cryptocurrency.

The total supply of WBTC was only around 4,000 coins last June, and today it is 47 times that. The gigantic growth has made the token the most popular form of Bitcoin on the Ethereum blockchain.

WBTC touches the 1% mark | Source: Arcane Research

Overall, around 240,000 BTC has been tokenized into Ethereum protocols, of which 80% of the supply comprises of WBTC.

Why The Need For WBTC?

Tokenized BTC is becoming increasingly popular because the Bitcoin blockchain lacks some functionality that Ethereum does not.

As the Ethereum DeFi ecosystem is highly lucrative, it’s not surprising that investors are looking to get their hands on some of those yields.

WBTC isn’t the only BTC token on Ethereum. HBTC and RENBTC are some of the other examples. However, only WBTC is noticing such massive growth.

Below is a chart that visualizes the difference between WBTC and other tokens:

WBTC runs away from the rest | Source: Dune Analytics

As is clear from the chart, the competition of the token is largely stagnant, and drastically lesser in circulation, making up for only 20% of the total BTC supply on Ethereum.

Related Reading | Privacy Protection: The Future of DeFi

BadgerDAO

BadgerDAO is a decentralized autonomous organization that aims to build the products and infrastructure necessary to bring Bitcoin as collateral to other blockchains.

BadgerDAO has played an important part in Wrapped Bitcoin’s rise above its competition. The platform currently has $632 million in tokens locked in.

There are 13 vaults (called “setts”) in total on the website where you can deposit your tokens. A lot of these setts are liquidity pairs of WBTC and some other token. As a natural consequence, not all the value is locked under the wrapped token.

Nonetheless, there is a WBTC-only sett that is powered by Yearn Finance. The vault is now the biggest one on the platform with about $200 million tokens deposited.

Badger offers quite low price-to-earning ratio | Source: BadgerDAO

The above chart is from a BadgerDAO report that shows that they have one of the lowest price-to-earning ratios when compared to other DeFI businesses.

Related Reading | Top 10 DeFi Projects in Q2 2021

Bitcoin Price

In the past 30 days, the value of the cryptocurrency has dropped by 14%.

However, the general trend seems to have changed towards up in this past week of June so far. Below is a chart showing the variation in the cryptocurrency’s value:

BTC seems to be on a slight upward trend | Source: BTCUSD on TradingView

As per a Voyager Digital survey, 87% of the respondents plan to buy more cryptocurrency in the coming months. 7 out of 10 respondents also believe market sentiment is bullish in the next three months.

However, other investors like Rich Bernstein feel that we are looking at a bearish market.

TA: Ethereum Gearing For Another Lift-Off to $2.8K: Rally Isn’t Over Yet

Ethereum is showing positive signs above $2,500 against the US Dollar. ETH price is likely to accelerate higher above $2,650 and it could revisit $2,800.

  • Ethereum started a steady increase above the $2,500 resistance and $2,550.
  • The price is now trading well above $2,500 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $2,480 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to climb further higher above $2,650 and $2,700 in the near term.

Ethereum Price Gains Bullish Momentum

Ethereum formed a base above the $2,350 level and started a fresh increase. ETH broke the $2,450 resistance zone to move into a bullish zone.

There was a break above a major bearish trend line with resistance near $2,480 on the hourly chart of ETH/USD. The pair even settled nicely above the $2,500 level and the 100 hourly simple moving average. The pair climbed above the $2,550 resistance level.

Ether is now trading well above the 76.4% Fib retracement level of the of the key decline from the $2,626 high to $2,260 swing low. An immediate resistance is near the $2,626 high. A clear upside break above the $2,626 high could set the pace for a larger increase in the coming sessions.

Ethereum Price

Source: ETHUSD on TradingView.com

The next key resistance is near the $2,715 level. It is near the 1.226 Fib extension level the of the key decline from the $2,626 high to $2,260 swing low. Any more gains above $2,720 could open the doors for a larger increase. The next major barrier for the bulls is near the $2,800 level.

Downsides Limited in ETH?

If Ethereum fails to clear the $2,620 and $2,650 resistance levels, it could start a downside correction. An initial support on the downside is near the $2,580 level.

The first major support is near the $2,550 level. Any more losses could possibly call for a test of the $2,500 support and the 100 hourly SMA in the coming sessions. A downside break below the 100 hourly SMA could push ether price towards the $2,450 support zone.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently well above the 50 level.

Major Support Level – $2,500

Major Resistance Level – $2,650