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TA: Ethereum Starts Recovery, Why $1,650 is a Major Hurdle

Ethereum is likely forming a strong support base above $1,580 against the US Dollar. ETH price could recover further, but it could face a strong resistance near $1,650.

  • Ethereum remained strong above $1,550 and started a decent recovery.
  • The price is still well below the $1,650 resistance and the 100 hourly simple moving average.
  • There is a crucial bearish trend line forming with resistance near $1,660 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct higher, but it is likely to face a strong selling interest near $1,650 and $1,660.

Ethereum Price Back above $1,600

Ethereum found support near the $1,550 zone and recently started an upside correction, unlike bitcoin. A low was formed near the $1,545 level before the price climbed back above $1,600.

There was a break above the $1,605 and $1,610 levels. It seems like the price is following a rising channel with resistance near $1,640 on the hourly chart. The 50% Fib retracement level of the downward move from the $1,737 high to $1,545 low is also near $1,641.

The main resistance is still near the $1,650 level and the 100 hourly simple moving average. There is also a crucial bearish trend line forming with resistance near $1,660 on the same chart.

Ethereum Price

Source: ETHUSD on TradingView.com

The trend line is close to the 61.8% Fib retracement level of the downward move from the $1,737 high to $1,545 low is also near $1,641. A successful close above the $1,650 and $1,660 levels is must for a strong increase in the near term. In the stated case, the price is likely to rise further above the $1,680 and $1,700 levels. The next major hurdle is near the $1,740 level.

Fresh Decline in ETH?

If Ethereum fails to climb above the $1,640 and $1,650 resistance levels, it could start a fresh decline. An initial support on the downside is near the $1,600 level.

The first key support is near the $1,580 level and the channel lower trend line. The main support is near the $1,550 level. A clear downside break below the $1,550 support could lead the price towards the $1,500 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,580

Major Resistance Level – $1,650

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TA: Ethereum Dives Below $1,600, Why $1,550 Is The Key For Next Move

Ethereum is down over 5% and it broke the $1,600 support zone against the US Dollar. ETH price must stay above $1,550 to avoid more losses in the coming sessions.

  • Ethereum extended its decline after it failed to recover above the $1,750 resistance level.
  • The price is currently trading well below $1,600 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $1,700 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct higher, but it is likely to face a strong selling interest near $1,650 and $1,660.

Ethereum Price Breaks Key Support

Ethereum made an attempt to gain strength above $1,740 and $1,750, but it failed. A high was formed near $1,737 before the price started a fresh decline, similar to bitcoin.

It broke the key $1,650 support level to move into a bearish zone. The bears even gained strength for a push below the $1,600 support level. A low is formed near $1,545 and the price is now trading well below the 100 hourly simple moving average.

An initial resistance on the upside is near the $1,590 and $1,600 levels. The 23.6% Fib retracement level of the recent decline from the $1,737 high to $1,545 low is also near $1,590 to act as a hurdle.

Ethereum Price

Source: ETHUSD on TradingView.com

The main resistance is forming near the $1,640 and $1,650 levels (the recent breakdown zone). The 50% Fib retracement level of the recent decline from the $1,737 high to $1,545 low is also near the $1,640 level. If there is an upside break above $1,650, the price could visit $1,700 or the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $1,700 on the hourly chart of ETH/USD.

More Losses in ETH?

If Ethereum fails to climb above the $1,640 and $1,650 resistance levels, it could continue to move down. An initial support on the downside is near the $1,560 level.

The main support is near the $1,550 level. A clear downside break below the $1,550 support could accelerate losses. The next major support below 1,550 may possibly be near the $1,500 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now well below the 40 level.

Major Support Level – $1,550

Major Resistance Level – $1,640

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Software Engineer Warns NFTs are Built on a “House of Cards”

Non-fungible tokens (NFTs) are digital assets that represent a range of unique real-world and intangible things. In recent times, digital NFT artwork has really taken off, thanks mostly to a string of high-profile sales.

The main selling point of NFTs is their scarcity. An implied benefit is that they will exist forever on the blockchain. However, research conducted by Jonty Wareing shows this may not be the case.

Wareing examined the blockchain data of two well-known NFTs and discovered they consist of either a URL address or IPFS hash. In other words, the existence of those NFTs depends on the marketplace seller staying in business.

“Short version: The NFT token you bought either points to a URL on the internet, or an IPFS hash. In most circumstances it references an IPFS gateway on the internet run by the startup you bought the NFT from. Oh, and that URL is not the media. That URL is a JSON metadata file.”

NFTs Built on Shaky Foundations

In the first instance, Wareing referred to a piece called CROSSROAD by Beeple via the Nifty Gateway marketplace.

It was a first for Nifty in that the NFT would change depending on the outcome of the U.S. election. CROSSROADS sold for $6.6mn in February this year.

CROSSROADS NFTs by Beeple

Source: niftygateway.com

Wareing noted that the NFT token for CROSSROADS is a JSON file hosted on Nifty Gateway servers. He stated that if Nifty Gateway stopped trading, CROSSROADS would also cease to exist. He concluded the piece would be worthless if that were to happen.

“THAT file refers to the actual media you just “bought”. Which in this case is hosted via a @cloudinary CDN, served by Nifty’s servers again. So if Nifty goes bust, your token is now worthless. It refers to nothing. This can’t be changed.”

Similarly, an examination of Beeple’s THE FIRST 5000 DAYS refers to an IFPS hash. In turn, this refers to a JSON metadata file referencing an IFPS gateway from NFT marketplace Makersplace.

Wareing’s View on NFTs

Both CROSSROADS and THE FIRST 5000 DAYS will exist as long as each marketplace seller stays in business. But there remains a nagging doubt that both Nifty Gateway and Makersplace will go out of business one day.

Wareing called this situation a “house of cards” and predicts every NFT sold will be “broken” within the next ten years. However, he stressed that this is not the case for every NFT in existence.

“In short: Right now NFT’s are built on an absolute house of cards constructed by the people selling them. It is likely that _every_ NFT sold so far will be broken within a decade. Will that make them worthless? Hard to say.”

Software Engineer at Consenys, Sam Walker, agreed with Wareing’s assessment and thanked him for bringing the problem to light. Walker said he would use this information to improve tooling around IPFS and NFTs.

NFTs: Ethereum daily chart

Source: ETHUSD on TradingView.com
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TA: Ethereum Struggles Below $1,700, Why ETH Could Accelerate Losses

Ethereum is struggling to recover above the $1,710 and $1,750 resistance levels against the US Dollar. ETH price is likely to continue lower if it fails to stay above the $1,650 support level.

  • Ethereum is showing a few bearish signs below the $1,750 and $1,710 resistance levels.
  • The price is currently trading well below $1,750 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $1,740 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct higher, but it is likely to face a strong selling interest near $1,710 and $1,750.

Ethereum Price Remains At Risk

Ethereum tested the $1,650 support zone and started an upside correction. It climbed above the $1,700 level, but it struggled to even test $1,750. A high is formed near $1,720 before the price started a fresh decline.

It broke the $1,700 level and retested the $1,660 support. Ether is now trading well below $1,750 and the 100 hourly simple moving average. A low is formed near $1,650 and the price is currently consolidating losses, similar to bitcoin.

An initial resistance on the upside is near the $1,685 level. It is near the 50% Fib retracement level of the recent decline from the $1,721 high to $1,650 low. The first major resistance is near the $1,700 and $1,705 levels.

Ethereum Price

Source: ETHUSD on TradingView.com

The 76.4% Fib retracement level of the recent decline from the $1,721 high to $1,650 low is also near $1,705. Moreover, there is a key bearish trend line forming with resistance near $1,740 on the hourly chart of ETH/USD. A clear break above the $1,720 high and then a follow up move above $1,750 is must for a fresh increase in the near term.

More Losses in ETH?

If Ethereum fails to climb above the $1,705 and $1,720 resistance levels, it could continue to move down. An initial support on the downside is near the $1,660 level.

The main support is near the $1,650 level. A clear downside break below the $1,650 support is likely to clear the path for a sharp decline. In the stated case, the price might test $1,600 or even $1,580 in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is still well below the 50 level.

Major Support Level – $1,650

Major Resistance Level – $1,720

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Pomp Predicts Secondary Market for NFTs Will Drive Even Greater Demand

NFTs are all the rage at the moment. At the same time, some, including Mike Winklemann, AKA Beeple, have described the situation as a bubble.

“I absolutely think it’s a bubble, to be quite honest. I go back to the analogy of the beginning of the internet. There was a bubble. And the bubble burst.”

Nonetheless, Bitcoin-bull Anthony Pompliano predicts a maturation of the NFT use case outside of buying and selling. He sees growth in the secondary market in the form of generating revenue streams through NFT assets.

The NFTs Phenomena is Just Beginning

Pompliano described the current NFTs market as the start of something bigger. He argues that in much the same way as the internet forced new applications and different ways of doing things, NFTs will also change the status quo.

Speaking to CNBC’s host of Mad Money Jim Cramer, Pompliano shared his vision for NFTs by making a case for secondary markets. He opened with the example of a virtual museum accessible via virtual reality. Owners of NFT assets can display their property in the virtual museum and presumably receive a royalty from the visitors.

“Whether that’s these virtual museums. Where you can buy a digital good and display it in a virtual museum, and Jim can go in virtual reality and actually visit that place.”

As well as that, Pompliano said NFTs could guarantee revenue from secondary market resales. In the case of event tickets, the primary seller only gets paid once. But with an NFT ticket, it’s possible to automate revenue each time the ticket is resold.

“if it’s a digital good and I can actually code into the asset and say, ‘hey, every time this trades hands I want 10%.’”

Pre-Covid, the secondary tickets market was estimated to be worth $15bn, none of which goes to artists or those responsible for the event.

Scarcity is What Drives Price

The arguments against NFTs remain as pertinent as ever, perhaps more so considering the vast sums commanded by in-demand artists.

Pompliano brushes aside this argument on the grounds of scarcity. He says NFTs follow the same demand and supply principles as all other markets.

“Let’s remember what drives a lot of value. What drives the value of Bitcoin? Scarcity, there’s 21 million of them. What drives the traditional art market? Scarcity. What drives Supremes and sneakers and kind of all of that economy and culture? Scarcity.”

Following this train of thought, the $69.3mn pricetag for Beeple’s The First 5000 Days is justifiable. Vignesh Sundaresan, who bought the piece, described it as representing 13 years of work, saying it transcends skill and technique because it embodies time. The one thing that cannot be “hacked.”

Sundaresan added that he believes the artwork is worth $1bn.

NFTs: Ethereum daily chart

Source: ETHUSD on TradingView.com
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TA: Ethereum Breaks Key Support, Why ETH Could Decline Further

Ethereum broke the major $1,750 and $1,710 support levels against the US Dollar. ETH price is likely to continue lower below the $1,660 and $1,650 support levels.

  • Ethereum failed to stay above the key $1,750 and $1,710 support levels.
  • The price is currently trading well below $1,710 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $1,765 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct higher, but the previous support near $1,750 could prevent gains.

Ethereum Price Turns Red

Ethereum failed to clear the key $1,850 resistance zone and started a fresh decline, similar to bitcoin. ETH broke the $1,750 support zone to move into a bearish zone.

The price even cleared the $1,710 support level and settled below the 100 hourly simple moving average. It even broke the $1,680 level and traded as low $1,657. It is currently correcting higher and trading above the $1,680 level.

Ether corrected above the 23.6% Fib retracement level of the recent decline from the $1,808 high to $1,657 low. On the upside, the first major resistance is near the $1,710 level. The next key resistance is near the $1,730 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the recent decline from the $1,808 high to $1,657 low is also near $1,730. The main resistance is now forming near the $1,750 zone (the recent breakdown zone). If the price breaks the $1,730 and $1,750 resistance levels, it could start a decent increase towards $1,800 or even $1,850. An intermediate resistance could be near the $1,780 level or the 100 hourly simple moving average.

More Losses in ETH?

If Ethereum fails to climb above the $1,730 and $1,750 resistance levels, it could continue to move down. An initial support on the downside is near the $1,665 level.

The next major support is near the $1,650 level. A clear downside break below the $1,650 support may possibly open the doors for a drop towards the $1,600 level. Any more losses will most likely push the price towards the key $1,550 support in the coming days.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now well below the 50 level.

Major Support Level – $1,650

Major Resistance Level – $1,750

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Someone paid 1,500 ETH for Jack Dorsey’s NFT – Compares it to the Mona Lisa

The auction for the Non-Fungible Token (NFT) that gives proof of authority over Jack Dorsey’s “Tweet Genesis” has concluded. Held on Valuables, a platform that allows its users to convert their Tweets into NFT.

Created by the Ethereum based service Cent, the tweet has been “authenticated” by Dorsey, CEO of the social network and payment company Square. Valuables told auction participants:

The tweet itself will continue to live on Twitter. What you are purchasing is a digital certificate of the tweet, unique because it has been signed and verified by the creator.

The auction winner was Bridge Oracle Protocol CEO Sina Estavi after bidding nearly $3 million in Ethereum (ETH). Outbidding Justin Sun, founder of Tron, who bid nearly $2 million. Stavi told Dorsey:

Hey Jack, thank you for accepting my offer, and I’m glad this money is being donated to charity…. Let’s Bridge to freedom.

Dorsey previously confirmed that the proceeds from the sale of his NFT would be immediately converted to Bitcoin. The funds in BTC will be sent to GiveDirectly, a non-profit organization that is responsible for sending cash transfers to low-income individuals.

The organization is involved in a campaign to mitigate the effects of the COVID-19 pandemic on the continent. Dorsey used a fresh Ethereum address to conduct the transaction which was conducted via crypto exchange Kraken.

Via his Twitter handle Dorsey confirmed the money has been sent to the referred organization. Estavi responded in a separate tweet:

This is not just a tweet! I think years later people will realize the true value of this tweet, like the Mona Lisa painting

NFTs to fight climate change

Digital artist Mike “beeple” Winkelmann is also using the attention he has recently received for a good cause. Beeple is part of “The Carbon Drop” an NFT collection auctioned to aid solve climate change, created by The Social Alpha Foundation.

Beeple has celebrated the high participation the initiatives have been receiving. The digital artist believes solving climate change is crucial for NFT to have a future, the digital artist said:

we all know, this is absolutely something we MUST solve for NFT’s to realize their full potential. Luckily I know how amazing this community is so I have no doubt we will.

In a recent interview Beeple said the NFT crazed could be a bubble, but believe the technology will endure and have a used in people’s everyday life. The digital artist claimed:

I don’t think art is being devalued, I think in some cases a lot of value is being placed on the work. I think there is definitely, on some level, a bubble when you have NFT of toilet paper selling for $2,000. That seems kind of ridiculous.

Ethereum ETH
Ethereum with negative performance in the 24-hour chart. Source: ETHUSD Tradingview
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TA: Ethereum Consolidates Above $1,750, Why A Crucial Break is Almost Certain

Ethereum is still consolidating above $1,750 and $1,710 against the US Dollar. ETH price could soon either rally above the $1,850 resistance or dive towards the $1,550 support.

  • Ethereum is holding the key $1,750 and $1,710 support levels.
  • The price is currently trading below $1,800 and the 100 hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance near $1,795 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair seems to be preparing a strong move with $1,710 as a pivot zone.

Ethereum Price is Holding Key Support

Ethereum made another attempt to gain strength above $1,850, but it failed just like bitcoin at $60,000. A high was formed near $1,865 before there was a sharp decline.

The price broke the $1,800 support and settled below the 100 hourly simple moving average. The recent swing low was formed near $1,754 and the price is now correcting higher. It is trading above the $1,765 level.

Ether is now testing the 50% Fib retracement level of the recent decline from the $1,811 high to $1,754 low. An immediate resistance is near the $1,790 and $1,800 levels. There is also a connecting bearish trend line forming with resistance near $1,795 on the hourly chart of ETH/USD.

Ethereum

Source: ETHUSD on TradingView.com

The trend line is close to the 61.8% Fib retracement level of the recent decline from the $1,811 high to $1,754 low. A successful close above the $1,800 level might call for a fresh test of $1,850. Any more gains could open the doors for a rally towards the $2,000 resistance in the near term. An intermediate resistance might be near the $1,935 level.

Downside Break in ETH?

If Ethereum fails to climb above the $1,800 and $1,850 resistance levels, it could nosedive. An initial support on the downside is near the $1,750 level.

The main support is still near the $1,710 and $1,700 levels. A clear downside break below the $1,710 support may possibly open the doors for a larger decline. In the stated case, the bears are likely to aim a test of the $1,550 support zone in the days. An intermediate support might be near the $1,640 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.

Hourly RSI – The RSI for ETH/USD is just below the 50 level.

Major Support Level – $1,710

Major Resistance Level – $1,800

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How Ethereum low supply on exchanges could drive up ETH price

Research firm Santiment has determined that Ethereum’s supply radius on exchange platforms is at a 28-month low. With 20.1% of ETH in its reserves, the last time the metric was at similar levels was in November 2018.

Ethereum ETH
Source: Santiment

Above is a look at the relationship between the increase in Ethereum supply on the exchanges and fluctuations in its price. ETH’s rally in recent months corresponds to a sustained decline in this metric.

Ethereum is trading at $1,808 with bearish performance in the 24-hour chart. However, in the last hour ETH is showing an uptrend with 0.3% gains, after a week of negative performance. If the cryptocurrency manages to stay above the current level it could gain more momentum and go after resistance at $1,850.

Ethereum breaking above $1,800. Source: ETHUSD Tradingview

Where is Ethereum’s demand coming from?

Two sectors are currently taking a big part of ETH’s supply. Data from DeFi Pulse register 9,4 million ETH locked in DeFi protocols. After registering a drop at the end of February, ETH inflows into decentralized finance protocols have absorbed 1.5 million ETH since March 8.

This trend is continuing and shows no signs of weakening, as more and more users join the sector for profits or to participate in the Non-Fungible Token (NFT) craze.

Ethereum ETH
Source: DeFi Pulse

MakerDAO, Compound y Sushiswap hold the biggest amount of ETH with 3 million and 1.4 million each, respectively. Uniswap, Aave, Alpha Homora, and Balancer follow, but only the decentralized exchange (DEX) holds over 1 million ETH.

On the other hand, Ethereum 2.0 deposit contract has also absorbed a lot of ETH supply. At the moment, it holds 3,559,362 ETH with an estimated value of $6 billion. According to Arcane Research, more institutional demand has come for ETH since late 2020:

the steady increase in ETH loans outstanding. After ending Q1 at 5.5%, the share of ETH loans outstanding grew 177% over the next three quarters, ending the year at 15.5%. Of course, some of this growth is attributable to ETH’s price inflation.

Sustained demand for ETH could positively impact its price and allow the rally to continue through 2021. According to ETH Gas Station, transactions fees on the blockchain are again at record levels with 161 Gwei for the cheapest.

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This is why digital artist Beeple thinks NFTs might be a bubble

In an interview for CNN’s First Move, digital artist Mike “beeple” Winkelmann talked about “the craziness” he has experienced with the sale of his NFT for $69 million. Acknowledging that the process has been “overwhelming,” beeple the consequences of the marriage of art and technology.

The digital artist has a career that spans 20 years. The work sold for millions as part of a “unique auction” at Christie’s and was created with images made over 13 years. Non-Fungible Tokens (NFT), Beeple said, has become “a real way” to connect with an audience. Beeple said:

To be quite honest, this is not something that I saw coming. It has just been overwhelming (…). Every part of me looks at this and says, “this is insane”. I always thoughted they will be some attention paid to it, I did not think it would be this quick or this much.

The digital artist considers himself a political critic of sorts and showed disbelief about the NFT market during the interview. Beeple believes that digital techniques and media have the opposite effect of devaluing artworks:

I don’t think art is being devalued, I think in some cases a lot of value is being placed on the work. I think there is definitely, on some level, a bubble when you have NFT of toilet paper selling for $2,000. That seems kind of ridiculous.

Comparing NFTs to the early days of the internet, Beeple said the technology is “exciting.” However, he highlighted how at that time “a lot of bubbles” were created, speculation, hype.

After that stage was over, the Internet reached its next level of development. Something similar, Beeple believes, will happen with NFTs. The digital artist stated:

There is gonna be a huge rush of people into this (saying), ‘ok, here is chapstick, let’s NFT it’. You already see that now. But I think people are going to pretty quickly get wise to that and all that stuff is going to fade away. The things that connect with people in an emotional level, or have a lot of utility, those are the things that are going to stick around.

Calvin Harris and Steve Aoki bid thousands on Beeple’s NFTs

Beeple believes that NFTs will be technologies that will be integrated into many use cases in people’s everyday lives. The digital artist is participating in “The Carbon Drop”. An initiative created by The Social Alpha Foundation.

Via Twitter, Beeple has celebrated participation in its NFT auction. Receiving millions of dollars in bids from Calvin Harris, Steve Aoki, and others, the proceeds will go to the Open Earth Foundation to:

(…) develop innovative open digital infrastructure for improved management of planet Earth —helping track transparently the global progress on the Paris Agreement to avoid the existential risk of climate change.

Ethereum ETH
ETH gaining momentum in the last hour. Source: ETHUSD Tradingview
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Why Ethereum Must Hold $1,700 for Fresh Rally To $2,000

Ethereum struggled to settle above the $1,850 resistance and corrected lower against the US Dollar. ETH price is must stay above $1,700 to avoid a strong downside break.

  • ETH price is moving lower from the $1,850 resistance zone against the US Dollar.
  • The price is approaching the $1,780 support and the 100 simple moving average (4-hours).
  • There is a key rising channel forming with support near $1,775 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair is likely to decline heavily if it fails to stay above $1,775 and then $1,700 in the near term.

Ethereum Is Facing Hurdles

This past week, bitcoin and ethereum saw a fresh decline from $60,000 and $1,880 respectively against the US Dollar. ETH remained well bid above the $1,710 level and the 100 simple moving average (4-hours).

The last swing low was formed near $1,173 before there was an upward move. The price climbed above the $1,800 resistance level. There was a break above the 50% Fib retracement level of the downward move from the $1,942 high to $1,713 low.

However, the price failed to clear the $1,850 resistance zone. It seems like the price failed to clear the 61.8% Fib retracement level of the downward move from the $1,942 high to $1,713 low.

Ethereum

Source: ETHUSD on TradingView.com

Ether is currently declining and trading below $1,800. There is also a key rising channel forming with support near $1,775 on the 4-hours chart of ETH/USD. If there is a downside break below the channel support, there is a risk of a drop towards the $1,710 support. Any more losses below $1,700 may possibly open the doors for a larger decline towards $1,550 and $1,500.

Fresh Rally in Ether (ETH)?

If Ethereum stays above the channel support or $1,700, it could attempt a fresh increase. An initial resistance on the upside is near the $1,820 level.

The first key resistance is near the $1,850 and $1,855 levels. If ether price breaks the $1,850 resistance, there are high chances of a strong increase in the coming sessions. The next key resistance sits near the $1,920 and $1,950 levels.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.

4 hours RSI – The RSI for ETH/USD is now just below the 50 level.

Major Support Level – $1,710

Major Resistance Level – $1,850

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Ethereum Bullish Retest Offers “Once-In-A-Lifetime Opportunity”

Ethereum has drawn many comparisons with early Bitcoin, and is expected to grow in value substantially and make for life-changing wealth. Those that missed out on the initial run up are in luck, however, as one crypto analyst says that the recent bullish retest presents a “once-in-a-lifetime opportunity.”

Here’s an in-depth look at the bullish retest the analyst is referencing, and what that ultimately could mean for the second ranked cryptocurrency behind Bitcoin for the long run.

Ethereum Bullish Retest Completes: What This Means For The Top Altcoin

Ethereum has been arguably more bullish than Bitcoin itself, driving a higher ROI but still nowhere near former highs on the two crypto asset’s ratio.

Related Reading | Economist: Ethereum Looks “Bullish” After Withstanding “Macro Beating”

Eventually, Ethereum should catch up to Bitcoin on the ETHBTC trading pair, causing the top ranked altcoin to outpace the first ever cryptocurrency in terms of performance.

That time could be coming, as Ethereum just completed an extremely bullish retest of its former all-time high, and held it with extreme strength. The showing by bulls withstanding a “macro beating” could provide the confidence to fuel another leg up, taking Ethereum beyond prices of $2K per coin.

ethereum

This retest could be a once-in-a-lifetime opportunity to get in before it is too late | Source: ETHUSD on TradingView.com

Crypto Analyst Claims Those Who Missed Out Initially Get Another Chance

According to one crypto analyst, the bullish retest is another chance for those who missed out on the initial rally. They claim this is a “once-in-a-lifetime opportunity” for latecomers, although technically it is the second chance after missing the initial run up.

Cryptocurrencies move quickly and violently, especially when a trading range is left behind. Ethereum has been trading between $1,400 and $100 for roughly four years, and just retested the former resistance as support, and held. The important resistance flip into support is now confirmed, and typically markets then move up in a strong way.

Related Reading | Alt Season 2.0: Analyst Claims It’s “Showtime” For Ethereum

Ethereum is the second ranked cryptocurrency by market cap, only behind Bitcoin, and recently started the phases of the ETH 2.0 upgrade that should address scalability issues seen with the network recently.

Regardless of the challenges, activity on Ethereum is so high, ETH reserves on exchanges so low, and demand for Ether for gas so high, the price per coin will continue to skyrocket for the foreseeable future.

The retest of former resistance turned support, could also be the factor that finally lets the altcoin outperform Bitcoin for a period of time, bringing the ratio back toward the highs of early 2018.

Are you going to get in on this once-in-a-lifetime opportunity the analyst suggests is here?

Featured image from Deposit Photos, Charts from TradingView.com
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TA: Ethereum Stuck In A Range, Why $1,700 Is The Key For Next Move

Ethereum failed to clear the $1,850 resistance and corrected lower against the US Dollar. ETH price is still holding the key $1,710 support and it seems to be trading in a range.

  • Ethereum is moving in a range below the $1,850 resistance and above the $1,710 support.
  • The price is now above the $1,710 support, but it is below the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $1,790 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely start a strong increase as long as there is no clear break below $1,700.

Ethereum Price is Holding Key Support

Ethereum extended its rise above the $1,800 and $1,820 resistance levels. ETH even broke $1,840, but it failed to surpass the key $1,850 resistance zone.

A high was formed near $1,849 before the price started a fresh decline. It broke the $1,800 support and the 100 hourly simple moving average. Ether tested the $1,710 support zone, where the bulls took a strong stand. It seems like the price is moving in a range below the $1,850 resistance and above the $1,710 support.

The price is trading above the 23.6% Fib retracement level of the recent decline from the $1,849 high to $1,732 low. On the upside, the price is facing hurdles near the $1,800 level and the 100 hourly simple moving average.

Ethereum

Source: ETHUSD on TradingView.com

There is also a key bearish trend line forming with resistance near $1,790 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $1,849 high to $1,732 low. A close above the $1,800 resistance may possibly lead the price towards the $1,850 level. To start a strong increase, the price must settle above $1,850 in the near term.

More Losses in ETH?

If Ethereum fails to climb above the $1,800 and $1,850 resistance levels, it could attempt a downside break. An initial support on the downside is near the $1,740 level.

The main support is still near the $1,710 and $1,700 levels, below which ether price might start a strong decline towards the $1,650 and $1,620 levels.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.

Hourly RSI – The RSI for ETH/USD is just below the 50 level.

Major Support Level – $1,710

Major Resistance Level – $1,800

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Ethereum Could Replace Bitcoin to Become Top Crypto Asset: Researcher

Ethereum, the second-largest blockchain network by valuation, has the potential to jump to replace Bitcoin to become the top digital asset, says Ryan Watkins of Messari.

The senior research analyst cited a flurry of catalysts that could lead to the so-called flippening event. Firstly, Ethereum’s full protocol upgrade to proof-of-stake from proof-of-work blockchain would lead to introducing a “burn mechanism.” It means the network would pre-algorithmically destroy more ETH tokens than its active supply, leading to better scarcity.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency
Ethereum is rallying near its all-time high above $2,000. Source: ETHUSD on TradingView.com

Secondly, Mr. Watkins noted that the imminent Ethereum upgrade would make its network more secure than Bitcoin. As a result, it would assume the most active blockchain’s role in the space, attracting new projects and users from the emerging decentralized finance and non-fungible token sector. Bitcoin would lack those features as it transitions to become an anti-inflation, anti-fiat store-of-value asset.

“The selling point of Bitcoin over Ethereum as a store of value asset boils down its monetary policy being very predictable and the Bitcoin blockchain being very secure,” Mr. Watkins said. “I think that with the shift to Eth2 and to Proof-of-Stake, […] Ethereum may actually potentially be more secure than Bitcoin.”

“If Ethereum is more secure and it [has] a stronger monetary policy, well, then what is the bull case for Bitcoin in this scenario,” the researcher added.

An $800bn Gap

Bitcoin, with its one trillion dollars plus market capitalization, outgrows Ethereum by roughly $800 billion. The benchmark cryptocurrency makes for about 60 percent of the entire crypto market valuation, which would mean Ethereum bulls would need to sprint instead of jogging if they ever want to flip Bitcoin.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin flies higher on its store-of-value narrative. Source: BTCUSD on TradingView.com

But Ethereum 2.0 promises to bring something that Bitcoin clearly lacks: scalability and speed. The upgrade would instantly enable Ethereum’s vast network — which backs projects like Uniswap and Tether — an edge over Bitcoin, which does not support a dapp-friendly environment.

For instance, an upgraded Ethereum network expects to conduct 100,000 transactions per second compared to Bitcoin’s 2-6 transactions per second.

Ethereum & Metcalfe’s Law

Analyst Raoul Pal applies Metcalfe’s Law to show how Ethereum can flip Bitcoin.

In retrospect, the law states that “the effect of a network is proportional to the square of the number of nodes in said network.” To put it mildly, the more users a blockchain has, the higher its utility goes. In turn, higher transactions lead to more fee revenue. As a result, the token backing the network experiences a spike in its value.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency

Mr. Pal added that the Ethereum network resembles what Bitcoin was at its early stage. And the former is growing faster, which would have its market cap sprint ahead of the latter.

“My hunch is BTC is a perfect collateral layer but ETH might be bigger in market cap terms in 10 years,” he added. “Money and collateral is just the base layer. Everything builds on top. The store of value is collateral, the trust layer and exchange of value is bigger.”

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TA: Ethereum Breaks 100 SMA, Why ETH Looks Set For Fresh Run To $2K

Ethereum is rising and it broke the key $1,800 resistance against the US Dollar. ETH price is showing positive signs and it is likely to continue higher towards $2,000.

  • Ethereum is forming a support base above the $1,750 and $1,760 levels.
  • The price is now well above the $1,800 zone and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $1,780 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a strong increase once it clears the $1,850 resistance zone.

Ethereum Price is Eyeing Fresh Surge

Ethereum remained well bid above the $1,750 support zone. As a result, ETH started a fresh increase above the $1,800 resistance zone, similar to bitcoin above $58,000.

The bulls took control, resulting in a steady increase above the $1,800 resistance. It is now well above the $1,800 zone and the 100 hourly simple moving average. There was also a break above a major bearish trend line with resistance near $1,780 on the hourly chart of ETH/USD.

The pair is now trading above the 50% Fib retracement level of the key decline from the $1,944 swing high to $1,710 support zone. Ether price is now testing the $1,850 resistance zone. The 61.8% Fib retracement level of the key decline from the $1,944 swing high to $1,710 support zone is also near the $1,855 level to act as a major hurdle.

Ethereum Price

Source: ETHUSD on TradingView.com

A successful break above the $1,850 and $1,855 resistance levels could open the doors for a larger increase. The next key resistance is near the $1,895 level, above which ether price might rise to $1,920 or even $2,000 in the coming sessions.

Fresh Decline in ETH?

If Ethereum fails to climb above the $1,850 and $1,855 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $1,800 level and the 100 hourly simple moving average.

The next major support is near the $1,750 level, below which ether price might retest the main $1,710 support zone in the near term.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is well above the 50 level.

Major Support Level – $1,750

Major Resistance Level – $1,855

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TA: Ethereum Struggles Near $1,800, Why 100 Is The Key For Fresh Increase

Ethereum is facing a strong resistance near $1,800 against the US Dollar. ETH price must settle above $1,800 and the 100 hourly SMA to move into a bullish zone.

  • Ethereum traded towards the $1,710 support before correcting higher.
  • The price is now facing a strong resistance near $1,800 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $1,800 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a steady increase if it settles above $1,800 and the 100 hourly SMA.

Ethereum Price is Facing Hurdles

Ethereum declined towards the $1,700 support zone, where the bulls appeared. ETH traded as low as $1,712 before it started an upside correction, similar to bitcoin.

The price traded above the $1,750 and $1,760 resistance levels. There was a break above the 23.6% Fib retracement level of the downward wave from the $1,944 swing high to $1,712 low. However, the price seems to be facing a strong resistance near the $1,800 level.

There is also a key bearish trend line forming with resistance near $1,800 on the hourly chart of ETH/USD. The trend line resistance at $1,800 is also close to the 100 hourly simple moving average.

Ethereum Price

Source: ETHUSD on TradingView.com

A clear break above the trend line resistance could open the doors for a steady increase above $1,800. An immediate resistance is at $1,828. It is close to the 50% Fib retracement level of the downward wave from the $1,944 swing high to $1,712 low.

The next key resistance is near the $1,855 level, above which ether price might rise steadily towards the $1,900 and $1,920 levels in the near term.

Fresh Decline in ETH?

If Ethereum fails to correct higher above the $1,800 and $1,828 resistance levels, it could decline further lower. The first key support is near the $1,710 level.

The main support seems to be forming near the $1,700 level. If the bulls fail to defend the $1,700 support zone, there is a risk of a drop towards the $1,660 level. Any more loses could possibly lead the price towards the $1,620 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is still below the 50 level.

Major Support Level – $1,700

Major Resistance Level – $1,800

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TA: Why Ethereum Could Decline Heavily If It Breaks $1,700

Ethereum is started a major decline from well above $1,850 against the US Dollar. ETH price is trading near the key $1,700 support, below which it could decline heavily.

  • Ethereum declined further below the $1,800 and $1,750 support levels.
  • The price is now trading well below $1,800 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $1,820 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could decline heavily if it fails to stay above $1,710 and $1,700.

Ethereum Price is Holding Key Support

Ethereum failed to move back above the $1,850 level and extended its decline, similar to bitcoin. ETH broke the $1,800 support zone to move further into a bearish zone.

The price even broke the $1,750 support and settled well below the 100 hourly simple moving average. However, the bulls are now protecting the main $1,700 support zone. A low is formed near $1,712 and ether is now consolidating losses.

An initial resistance on the upside is near the $1,765 level. It is near the 23.6% Fib retracement level of the downward move from the $1,944 high to $1,712 low.

Ethereum

Source: ETHUSD on TradingView.com

On the upside, the first key resistance is forming near the $1,800 level and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $1,820 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the downward move from the $1,944 high to $1,712 low.

To move into a positive zone, ether price must clear the trend line resistance and $1,800. A close above $1,800 and the 100 hourly SMA could start a steady increase.

More Losses in ETH?

If Ethereum fails to correct higher above the $1,765 and $1,800 resistance levels, it could correct further lower. The first key support is near the $1,710 level.

The main support is now forming near the $1,700 level. If there is a downside break below the $1,700 support, there is a risk of a nasty decline. In the stated case, ether price might dive towards $1,600 or even $1,550.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now well below the 50 level.

Major Support Level – $1,700

Major Resistance Level – $1,800

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TA: Ethereum Regains Strength, Why ETH is Poised To Break $2,000

Ethereum is trading nicely above the $1,850 support against the US Dollar. ETH price is likely to start a strong increase above $1,900 and it could even clear the $2,000 resistance.

  • Ethereum traded as high as $1,943 before correcting lower below $1,900.
  • The price is now trading nicely above $1,850 and the 100 hourly simple moving average.
  • There is a key bullish flag forming with resistance near $1,890 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to start a strong rally if there is a close above the $1,900 resistance.

Ethereum Price Could Accelerate Higher

Ethereum traded above the $1,900 resistance when bitcoin climbed above $60,000. ETH traded as high as $1,943 before it faced sellers.

As a result, there was a downside correction below the $1,920 and $1,900 levels. Ether price even declined below the $1,880 support level. There was a break below the 23.6% Fib retracement level of the upward move from the $1,722 swing low to $1,943 high.

Ether is now trading nicely above $1,850 and the 100 hourly simple moving average. It is also holding the 50% Fib retracement level of the upward move from the $1,722 swing low to $1,943 high.

Ethereum Price

Source: ETHUSD on TradingView.com

There is also a key bullish flag forming with resistance near $1,890 on the hourly chart of ETH/USD. If there is an upside break above the flag resistance, there are chances of a strong increase above $1,900. The next key resistance is near the $1,950 level, above which the price may even clear the $2,000 resistance zone in the coming sessions.

Downside Break in ETH?

If Ethereum fails to continue higher above the $1,890 and $1,900 resistance levels, it could correct further lower. The first key support is near the $1,850 level.

The main support is now forming near the $1,830 level and the 100 hourly simple moving average. If there is a downside break below the $1,830 support, ether price might decline towards the $1,800 level. Any more losses could possibly call for a test of the key $1,750 support zone in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,830

Major Resistance Level – $1,900