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Ethereum [ETH] and Tron [TRX] Price Analysis: Bears gradually gain control of both ETH and TRX

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Ethereum [ETH] Vs. Tron [TRX] Technical Analysis: Bears infestation begins for both ETH and TRX
Source: Pixabay

Ethereum and Tron’s communities are both involved in developing DApps that have various utilities, but work on cryptocurrency’s underlying technology, blockchain.

Ethereum led the way with DApps, but failed to scale due to excessive users that surged into its use. However, Tron has been slowly succeeding where Ethereum failed. Tron’s transactions exceeded that of Ethereum and reached an all-time high of 4.27 million, going to show the efficiency of Tron in the face of competition.

Ethereum 1 day chart

Source: TradingView

Support 1: $80.72
Resistance 1: $181.63
Resistance 2: $248.64
Resistance 3: $318.18
Resistance 4: $478.76

The Bollinger Bands showed that the widening of the bands continued, indicating that there was volatility in the market. The price seemed to have recovered falling towards the simple moving average, which indicated bearish momentum for ETH.

The Chaikin Money Flow indicator was crawling towards the zero-line, indicating that the strength of buyers was diminishing slowly.

The Stochastic RSI showed that the Stochastic line had dipped into the oversold zone, indicating bearish momentum for ETH.

Tron 1 Day

Source: TradingView

Support 1: $0.0119
Resistance 1: $0.0267
Resistance 2: $0.0396

For TRX, the Bollinger Bands were slowly converging. TRX’s price bounced just before hitting the simple moving average, indicating slight bullish momentum.

The Chaikin Money Flow indicator crossed the zero-line, implying a reduction in the money flow. However, the CMF line was recovering, at press time.

The Stochastic RSI for Tron showed a similar pattern as that of Ethereum i.e., a strong bearish crossover that hit the oversold zone.



Conclusion

ETH and TRX prices were being pushed by bearish pressure, a projection confirmed by Chaikin Money Flow, Bollinger Bands, and Stochastic RSI.





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

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Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021

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Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
Source: Pixabay

With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.

 

CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.



Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.





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