Ethereum: Has the Run to $9000 Started?!

Ethereum: Has the Run to $9000 Started?!

Almost two weeks ago, see here, I showed Ethereum (ETH), was according to the Elliott Wave Principle (EWP) in “[red] wave-v of [black] major wave-c of blue Primary-IV,” which “should ideally target between $1445-1850.” ETH bottomed on May 23rd at $1736. Right smack in the middle of my ideal (black) target zone. See Figure 1 below. It has since rallied and is now trading at $2750s—a 58% rise.

Figure 1. ETH daily EWP count and technical indicators.

Long-term upside potential outweighs short-term downside risk

Last week I showed my Premium Crypto Trading Members ETH should ideally bottom around $2010-2325, and on Sunday, May 30th, it bottomed at $2275. Again, right smack in the middle of my ideal (orange) target zone. See Figure 1 above.

With two out of two forecasts correct, the EWP is once again an accurate and reliable forecasting tool. But then I always become wary as the winning streak always ends at some point. I.e., most analysts -including me- are right about 65-75% of the time.

However, if ETH can rally above the $2920 high made last week, without dropping below Sunday’s low first ($2275) and especially not below $1736, then it has great potential for the ideal impulse wave count as shown in Figure 1, and Blue Primary wave-V should then ideally target $8600-9200.

Primary-v will as shown, subdivide into five smaller (black) major waves. I have annotated where each of those waves should ideally top and bottom. Now we will let the market dictate if it wants to follow this typical Fibonacci-based impulse pattern or potentially go beyond those, i.e., extend. Wave-extensions can never be forecasted, only anticipated.

Bottom line: Two weeks ago, I correctly concluded, based on the EWP, “the downside risk from current levels is still almost 50% ($2700 vs. $1850-1445).” But also mentioned, “upside potential from current levels is now most likely 500+%.” ETH bottomed at $1736 and is up over 50% since. Suppose it can stay above critical downside levels, i.e., the lows made over the last two weeks and breakout above $2920 going forward. In that case, it has the potential to move to ideally $4400-4600 for wave-1 of wave-V, drop to $2800-3400 for wave-2 of wave-V and then rally to as high as $9200 for wave-5 of wave-V. From there, a multi-month correction will start.

Story continues

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This article was originally posted on FX Empire

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Top 10 Ethereum Addresses Hold 19 Million ETH

Ethereum, the world’s second-most valuable digital asset, is now up by more than 7% in the last 24 hours as the cryptocurrency market posted a strong rebound. Additionally, Ethereum’s on-chain activity has increased rapidly in the last few weeks as large ETH addresses have accelerated the accumulation of Ethereum coins.

Santiment, the crypto analytics and data services provider, released its latest report about Ethereum whales today and mentioned that the top 10 ETH addresses are now holding a total of 19.08 million coins. Despite the latest accumulation, ETH supply at leading digital exchanges is plunging.

“The top 10 Ethereum whale addresses are creeping toward a new milestone in terms of supply held. Currently holding 19.08m ETH, these top addresses previously held an All-Time High of 19.25m ETH three weeks before the price skyrocketed above $4,300,” Santiment mentioned.

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Ethereum 2.0, the network upgrade of ETH, recently crossed 5 million coins under its deposit contract after receiving immense support from the ETH community. Due to the latest decrease in volatility, the average transaction fee on the ETH network has dropped from over $60 to as low as $6.08 in the last 4 weeks.

Ethereum Network Activity

ETH whales have rapidly increased the movement of ETH since the start of this week. Yesterday, Whale Alert, a blockchain tracking and analytics platform, reported a transaction involving 48,582 Ethereum to an unknown wallet. The mentioned transfer was executed on Wednesday 2 June at 23:00 UTC. Apart from the latest surge in unknown transfers, large Ethereum movements from leading digital exchanges to crypto wallets were also reported this week. Earlier today, 20,522 ETH coins worth more than $55 million were transferred from the crypto exchange, Binance to a digital wallet.

According to the latest data published by Glassnode, smart contracts are now holding nearly 23% of the total Ethereum supply. On the other hand, crypto exchanges have approximately 12% of the total ETH supply, which is down from nearly 17% in September 2020.

No.1 Cryptocurrency: Can Ethereum beat Bitcoin in future?

The recent decline in Bitcoin price has put the spotlight back on the second biggest cryptocurrency, Ethereum, which, some say, has the potential to replace it as the number one digital currency in market share. Bitcoin has seen a major fluctuation in price in the past couple of months. It rose to the all-time high of $65,000, only to fall 50 per cent to $30,000. Its market share also went down to 42 per cent ($1.6 trillion) from 70 per cent before the start of 2020, CoinGecko data shows.

The month of May saw the biggest fall in Bitcoin price, thanks to the tightening of cryptocurrency laws by China and Tesla chief executive Elon Musk changing his stance on Bitcoin.

When compared to the market share, Bitcoin is still way ahead compared to Ethereum. The May rout helped Ethereum narrow this gap by about $350 billion. While Ether dropped by around 11 per cent in May, Bitcoin suffered a much worse route at 37 per cent. On year-on-year growth too, Ethereum seems to be beating Bitcoin. While Ethereum grew over 900 per cent over the past year, Bitcoin saw a 275 per cent jump.

Ethereum investors and its fans say there are two big reasons for a strong momentum – popularity for blockchain-based financial services and digital collectables and a major upgrade in its technology, which is underway and will bring a tectonic shift in the way Ethereum works.

Also read: Big change coming in Ethereum! To give huge advantage against Bitcoin

As countries become more open towards cryptos, interest in digital currencies have expanded beyond Bitcoin. Experts say Bitcoin will eventually lose its title as the number one crypto as another digital currency with better technology and tech agility will become more popular among crypto investors, and Ethereum seems to be offering just that.

“(Ethereum) will likely exceed Bitcoin at some point in the future, as Ethereum will be superior when it comes to innovation and developer interest,” said Tegan Kline, co-founder of blockchain software company Edge & Node, reported Bloomberg. Some also believe that replacing Bitcoin won’t be an easy game for Ethereum as it still has many advantages over Ethereum. “Bitcoin will still remain king of the cryptos,” Edward Moya, senior market analyst at Oanda Corp told the news platform.

Also read: Bitcoin price recovers to $38,403 after Elon Musk’s meeting with miners

Ethereum is also working on a major shift that will help save up to 99.5 per cent of the energy it currently consumes. Given the stiff opposition cryptos like Bitcoin are facing over climate change issues, it’s possible that more investors get drawn towards Ethereum in future.

Ethereum already uses lower energy than the most popular cryptocurrency Bitcoin. It will soon be completing the transition to Proof-of-Stake (PoS) from the Proof-of-Work (PoW) system, according to Carl Beekhuizen, an Ethereum Foundation researcher. The technological shift will mean Ethereum will consume even less energy than Bitcoin.

Meanwhile, in the past 24 hours, Bitcoin has seen 0.18 per cent growth in its price to $36,291.92, while Ether grew 3.79 per cent to $2,589.5.

Also read: Cryptocurrency market crashes! Is it time to sell Bitcoin?