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Ethereum [ETH/USD] Technical Analysis: Coin takes refuge in bear’s kingdom

Priya

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Source: Unsplash

The bear has returned to the market and this time with rather unexpected news. The winter animal is seen clinging to the coin with the support of Constantinople hard fork postponement.

According to CoinMarketCap, at press time, Ethereum was trading at $122.31 with a market cap of $12.75 billion. The trading volume for the cryptocurrency is recorded to be $2.81 billion and the coin has plunged by over 5% in the past 24 hours.

1-hour

Ethereum one-hour price chart | Source: Trading View

Ethereum one-hour price chart | Source: Trading View

In the one-hour chart, the downtrend is outlined from $149.95 to $129.38 and from $128.96 to $121.05. The uptrend is demonstrated from $114.35 to $117.95. The strong resistance for the cryptocurrency is laid down at $129.40. The immediate support for the coin is at $117.91 and the strong support can be seen at $114.29.

Parabolic SAR is showing that the coin has shifted to the bear’s lane as the dots have aligned above the candlesticks.

Chaikin Money Flow is currently rendering its services to the bear as the money has started to flow out of the market.

Bollinger Bands is forecasting a volatile market as the bands are pictured well away from each other.

1-day

Ethereum one-day price chart | Source: Trading View

Ethereum one-day price chart | Source: Trading View

The downtrend for the coin is demonstrated from $499.01 to $155.91. The chart pictures an uptrend from $83.74 to $115.61 for the cryptocurrency. The immediate resistance is seen at $156.06 and the strong resistance is at $218.96. On the other hand, the immediate support for the coin has found its ground at $115.45 and the strong support is at $82.88.

MACD is on the bear’s side of the market as the moving average line is below the signal line after a crossover.

Aroon indicator is currently showing a strong bearish presence as the down line is dominating over the up line.

RSI is showing that the buying pressure and the selling pressure for the cryptocurrency are currently evened out in the market.



Conclusion:

The market is forecasting a bearish weather for the coin as a majority of the coins are rooting for its return. This includes Parabolic SAR and CMF from the one-hour chart and MACD and Aroon Indicator from the one-day chart.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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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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