Connect with us

Analysis

Ethereum [ETH/USD] Technical Analysis: Bears snatch bulls’ momentary victory

Avatar

Published

on

Ethereum [ETH/USD] Technical Analysis: Bears snatch bulls' momentary victory
Source: Unsplash

Ethereum gave up its second spot for a brief period of time during the XRP rally on November 6 and moved to spot three, but has since made it back to the second position. The Devcon has shed some light on long-standing problems that Ethereum has been facing and Viatlik Buterin has suggested a few alternatives and updates that are coming up in the near future to address those issues.

1-hour

Source: Trading View

Ethereum, like other altcoins, has started their rally to the top. An uptrend is visible as a result, which spreads over the price range starting from $192.68 to $198.11 and up until $212.01. A small downtrend is visible in the price range of $219.53 to $217.44. The support set at $212.83 was breached at 3:00 UTC on November 8. Subsequent supports are at the price points $206, $198.05 and $192.68. There is one resistance that is holding steady at $220.35.

The Parabolic SAR markers are above the price candles, indicating a bearish presence in the market.

The MACD indicator is showing bearish signs as well, as the MACD and the signal line have both taken a nose dive to the bottom after a bearish crossover.

The Awesome Oscillator is teaming up with the SAR and MACD, indicating a bearish run with red spikes developing below the zero line. This is an indication of market momentum decreasing.

1-day

Source: Trading View

There is a significant downtrend spread in the range $593.40 to $218.65, with no prominent uptrend in sight. The prices are holding steady at the support line $182.79. The prices have to cross the first resistance line at $247.76 for a trend reversal, after which there are two more resistance lines at $317.54 and $499.01.

The RSI indicator has failed to cross the 60 line, indicating that the sellers took over midway and are dominating, which is an overall bearish trend.

The RVGI indicator, on the other hand, has seen a bullish crossover and is rising up, indicating bullish pressure.



Conclusion

The one-hour timeframe shows a bearish trend for Ethereum. The one-day chart shows mixed signals as the RSI indicates bearish and RVGI indicates otherwise.





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



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.

News

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

Avatar

Published

on

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.





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending