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Ethereum [ETH/USD] Technical Analysis: Trend reversal expected as bull attempts to overpower bear

Priyamvada Singh

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Ethereum [ETH/USD] Technical Analysis: Trend reversal expected as bull attempts to overpower bear
Source: Pixabay

As the bear rule moves ahead in its journey in the cryptocurrency market, Ethereum [ETH], like its fellow mates, also dipped in red. At press time, the token slumped by 3.25% wherein it was trading at $89 with a market cap of $9.24 billion. The 24-hour trading volume was calculated at $1.72 billion.

1-hour

ETH 1-hour candlesticks | Source: tradingview

ETH 1-hour candlesticks | Source: tradingview

In this scenario of Ether candlesticks, the downtrend is stretching from $96.8 to $87.3 whereas the support level is set at $82.8. As of now, a possibility of trend breakout in the price is not apparent due to the absence of price-concentration.

The Parabolic SAR is clearly bullish on the cryptocurrency. This is visible as the dots have assembled themselves below the candlesticks to depict support for the price trend from falling.

The Aroon indicator is neutral on the matter as the green trend is also crashing, following the downtrend. However, the uptrend is still relatively stronger than the downtrend on the graph.

The MACD has made a bullish crossover to side with the bull. To confirm the stance, the reading line is traveling above the signal and moving gradually upwards.

1-day

ETH 1-day candlesticks | Source: tradingview

ETH 1-day candlesticks | Source: tradingview

In the one-day chart. it can be observed that the token has been devalued multiple times since July. The first downtrend is extending from $466 to $210 whereas the second one is ranging from $209 all the way down to $93. Here, the long-term support is set at $183, after which, the coin breached multiple supports and continues to do so.

The Bollinger Bands have contracted from its previous stance of high volatility. The bands are following a tunnel-pattern, still giving a fair amount of space for the market to fluctuate.

The RSI has been running in the oversold zone for almost a month now. A trend reversal is expected anytime. However, the indicator is bearish on Ether at present.

The Klinger Oscillator is bullish on the cryptocurrency as the reading line made a positive crossover by the signal. It is headed upwards in favor of the bull rule.



Conclusion

In the technical analysis, the majority of indicators are bullish on Ethereum and indicative of a trend reversal as ETH continues to swim in red. A certain degree of volatility is expected in the market as suggested by the Bollinger Bands.





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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.

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Tether [USDT] fallout buoys competing stablecoin growth, finds Diar report

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Tether [USDT] fallout buoys competing stablecoin growth; record spot volume high, finds report
Source: Pixabay

Tether, the top stablecoin, maintained its vice grip on the stablecoin market, while competing fiat-pegged cryptocurrencies are experiencing steady growth. USD Coin [USDC] and TrueUSD [TUSD], the other top stablecoins, have however surged in recent months, owing to the Bitfinex-Tether episode.

According to a recent report by Diar, competing stablecoins have surged in the month of May in terms of spot trading volumes, amassing over $4 billion tokens on the blockchain. The trading volumes of the stablecoins over the past 5 months have already surged ahead of total fiat-pegged volumes in 2019.

Source: Diar

In May alone, the Coinbase and Circle-backed stablecoin, USDC, saw a massive 130 percent rise in trading volume, accounting for $3.6 billion, compared to its April sum of $1.6 billion. Launched back in October 2018 during the prolonged crypto-winter, the stablecoin’s trading volume from the first four months of its issuance is still dwarfed in comparison to its April 2019 figure.

Since the beginning of the year alone, the stablecoin grew by 41 percent, stated Diar. Trading volumes reciprocated, recording a 435 percent top-up.

Source: Diar

TrueUSD by TrustToken, the audit-friendly stablecoin, saw its volume increase by $1 billion from $2.8 billion in April to $3.8 billion in the current month, beating USDC’s trading volume by $200 million. Diar added,



“Notably, though, is that TUSD has a higher velocity marking it a favorite by traders as the stablecoin has 30% less in outstanding reserves than Centre’s USDC.”

Interestingly, the USDT-sans-stablecoin surge occurred as Tether experienced its first month-on-month decline in market share for the first time in 6 months. Holding 81.7 percent of the market in March, USDT’s market share declined to 78.9 percent of the total Bitcoin to stablecoin and fiat market.

May looks to paint a different tale for Tether, given the backlash its parent company is facing. Tether Limited also shares management with iFinex, the company that operates Bitfinex, which allegedly used USDT reserves to cover up its $850 million undisclosed losses.





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