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Ethereum [ETH/USD] Technical Analysis: Bulls are ready to rock the cryptoboat

Priyamvada Singh

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Ethereum [ETH/USD] Technical Analysis: Bulls are ready to the rock the cryptoboat
Source: Pixabay

The market has returned to its mild movements with a hint of a sideways trend. Ethereum, the second-largest cryptocurrency, is also showing a slight downturn in its price at the moment.

At press time, ETH was down by 0.73%, trading at $212.46 with a market cap of 21.9 billion. The total 24-hour trading volume was recorded at $1.73 billion.

1-hour:

ETHUSD 1-hour candlesticks | Source: tradingview

ETHUSD 1-hour candlesticks | Source: tradingview

In this timeline, the uptrend extends from $207.36 to $210.34 while the downtrend ranges from $219.59 to $215.2. A possibility of trend breakout is not visible as of now, as the prices have comfortable space to move.

The Awesome Oscillator is flashing green on the ETH chart, depicting a healthy outlook on the market prediction.

The Klinger Oscillator made a bullish crossover with the signal line and is currently traveling above it. Hence, the indicator is bullish on the Ehereum market.

The Chaikin Money Flow agrees with the two above indicators. The reading line is approaching the bull’s land, pointing at an imminent positive price run.

1-day:

ETHUSD 1-day candlesticks | Source: tradingview

ETHUSD 1-day candlesticks | Source: tradingview

In this scenario, the downtrend and the uptrend are ranging from $456.44 to $202.42 and $183 to $188.35 respectively. However, there is still time for a breakout in the price trend to occur as the price does not appear concentrated enough.

The Bollinger bands are not indicating much volatility in the Ethereum market as the bands are still running a narrow pattern on the chart.

The Parabolic SAR is bullish on the Ether price. The dots are floating below the candlesticks, establishing support for the trend.

The RSI is also bullish on the ETH market. The reading line is showing a consistent climb to side with the bull.



Conclusion

In this technical analysis, it has been observed that the majority of the indicators are bullish on the Ethereum price trend. However, the upturn could be mild as the Bollinger bands are depicting low volatility in the market.





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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

Bitcoin

Bitcoin [BTC] and the US Dollar: Halving mirror effect on fiat would result in FOMO explosion

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Bitcoin [BTC] and the US dollar: Halving mirror effect on fiat would result in FOMO explosion
Source: Unsplash

Bitcoin’s halving, scheduled for May 2020, has everyone talking, with many focusing on the mining rewards that will be enforced after the event.

One among these theorists is Anthony Pompliano, Managing Partner at Morgan Creek Digital, and outspoken Bitcoin bull. In a recent tweet, Pompliano equated the top cryptocurrency’s halving principle to the top fiat currency, the US Dollar [USD].

Pompliano focused the effect on the banking class, which has been leaning towards the cryptocurrency market off-late with the crypto-craze turning the likes of Fidelity, Etrade, and JP Morgan. Another important premise for the USD-halving effect was the ‘unlimited supply’ of the fiat currency, which can be minted by the US Federal Reserve, unlike Bitcoin which has a fixed cap of 21 million.

The Morgan Creek executive suggested, based on the above premise, that if the USD endured a periodic halving, bankers would be “FOMOing” all over the place.

His tweet, in full, hypothesized,

Presumably, Pompliano’s tweet was meant to reflect the supply-control inconsistencies of the USD versus Bitcoin, and the reaction of the banking class to the same, from an investment point of view.

Frances Coppola, a prominent financial journalist, hit back at Pompliano for mulling this mirror effect from within his “bubble.” She stated that USD supply is decreasing due to the Fed ‘burning’ fiat currency, rather than printing more of it, with the intention of reducing the supply on a “permanent” basis.

She responded,

Pompliano responded by questioning if Coppola believed that the US government does not engage in the printing of its fiat, to which the latter responded that her statement was in reference to the Fed “reducing the supply” by burning USD.

Despite this back-and-forth and the “printing” and “burning” of fiat currency, as opposed to cryptocurrency, is the will of a single entity, the US government. On the flipside, Bitcoin and its halving takes place with the production of every 210,000th block, or every four years.

This halving cuts rewards, which currently stand at 12.5 BTC per block and are set to drop to 6.25 BTC per block in May 2020, thereby aiming to self-control the supply of BTC in the market. As mining rewards dip, miners would shy away from the market as their profits are cut in half. This ‘fear’ would cause an increase in the price for the cryptocurrency to continue production. Hence, the inflationary effect is balanced.

Unlike the USD, Bitcoin being decentralized does not have one entity controlling supply. Hence, “printing” or “burning” cannot take place at will to control macroeconomic factors. This point, despite not being emphasized by Pompliano, is an important demarcation between Bitcoin and the fiat world.



To further the debate, Coppola added that the halving would in fact, dent Bitcoin’s prospects of being a world currency. In light of the cryptocurrency falling short of this feat, she stated, “Bitcoin is an asset, not a currency,” referencing the words of Chris Cook from Market 3.0.

Cook’s “Currency paradox,” detailed the equation of Bitcoin as a method of payment relative to its drop in liquidity that will happen periodically with the passing of every halving. The “Currency paradox” read,





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