What Is Ethereum And How Does It Work?

What Is Ethereum And How Does It Work?

The Ethereum network can also be used to store data and run decentralized applications. Rather than hosting software on a server owned and operated by Google or Amazon, where the one company controls the data, people can host applications on the Ethereum blockchain. This gives users control over their data and they have open use of the app as there’s no central authority managing everything.

Perhaps one of the most intriguing use cases involving Ether and Ethereum are self-executing contracts, or so-called smart contracts. Like any other contract, two parties make an agreement about the delivery of goods or services in the future. Unlike conventional contracts, lawyers aren’t necessary: The parties code the contract on the Ethereum blockchain, and once the conditions of the contract are met, it self-executes and delivers Ether to the appropriate party.

Ethereum vs Bitcoin

Bitcoin’s primary use is as a virtual currency and store of value. Ether also works as a virtual currency and store of value, but the decentralized Ethereum network makes it possible to create and run applications, smart contracts and other transactions on the network. Bitcoin doesn’t offer these functions. It’s only used as a currency and store of value.

Ethereum Price Analysis: 27 March

The ETH/USD pair moved hand in hand with the BTC/USD pair in the markets, a correlation that has been rising since early March, and now had a value of 0.78, denoting a strong correlation. ETH/BTC pair was trading at a level of support. Ethereum simply must keep pace with Bitcoin in order to recover toward $2000 in the coming weeks.

Ethereum 12-hour chart

On the charts, ETH formed a short-term range (blue) from $1727 to $1853 for a time period of just over two weeks. ETH was forced to drop beneath this range following strong selling pressure at the same time when Bitcoin plunged from $57.8k to $53.8k. It is a fact that correlation was on the rise, as ETH followed BTC in the markets.

Two different sets of Fibonacci Retracement levels were plotted for ETH for different moves of Ether, and their confluence highlighted some areas of importance for Ether.

A rejection at the $2040 mark in mid-February was followed by an attempt at recovery, but this recovery halted at $1920. This makes the $1900 area significant as a supply zone, while the $1690-$1720 will also offer resistance to price.

Technical indicators had a bearish leaning, and the bounce off $1550 has flipped momentum to bullish in the shorter timeframes. The lack of buyers was an obstacle to ETH recovery.

Flipping the $1720 area to support would be an opportunity to open long positions.

Reasoning

OBV was in a steady downtrend, while RSI tested neutral 50 as resistance. Stochastic RSI was climbing out of the oversold territory, but momentum was still in bearish hands on the 12-hour chart.

$1720 is a critical level in the coming days. If buying volume drives prices higher, the $1690-$1720 region would present a buying opportunity.

Conclusion

A revisit to $1550 or a flip of the $1700 area would present an opportunity to buy Ether, but at the time of writing momentum leaned in favor of bears.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – March 27th, 2021

Ethereum

Ethereum rallied by 7.13% on Friday. Following on from a 0.32% gain on Thursday, Ethereum ended the day at $1,700.10.

A bearish start to the day saw Ethereum fall to an early morning intraday low $1,586.81 before making a move.

Steering clear of the 23.6% FIB of $1,579 and the first major support level at $1,550, Ethereum rallied to a late intraday high $1,700.70.

Ethereum broke through the first major resistance level at $1,624 and the second major resistance level at $1,660.

Resistance at $1,700 pegged Ethereum back late in the day.

At the time of writing, Ethereum was up by 0.74% to $1,712.74. A bullish start to the day saw Ethereum rise from an early morning low $1,699.97 to a high $1,716.54.

Ethereum left the major support and resistance levels untested early on.

For the day ahead

Ethereum would need to avoid a fall through the pivot level at $1,663 to support a run at the first major resistance level at $1,738.

Support from the broader market would be needed, however, for Ethereum to break out from this morning’s high $1,716.54.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $1,850 before any pullback. The second major resistance level sits at $1,776.

Failure to avoid a fall through the $1,663 pivot would bring the first major support level at $1,624 into play.

Barring an extended sell-off, however, Ethereum should steer clear of the second major support level at $1,549. The 23.6% FIB of $1,579 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $1,624

Pivot Level: $1,663

First Major Resistance Level: $1,738

23.6% FIB Retracement Level: $1,579

38.2% FIB Retracement Level: $1,292

62% FIB Retracement Level: $830

Litecoin

Litecoin rallied by 7.10% on Friday. Reversing a 2.54% loss from Thursday, Litecoin ended the day at $183.70.

A mixed start to the day saw Litecoin fall to an early morning intraday low $171.47 before making a move.

Story continues

Steering clear of the first major support level at $167, Litecoin rose to a late intraday high $183.93.

Litecoin broke through the first major resistance level at $177 and the second major resistance level at $183.

A late pullback, however, saw Litecoin briefly fall back through the second major resistance level before wrapping up the day at $183.70 levels.

At the time of writing, Litecoin was up by 0.26% to $184.18. A mixed start to the day saw Litecoin fall to an early morning low $183.50 before rising to a high $184.61.

Litecoin left the major support and resistance levels untested early on.

For the day ahead

Litecoin would need to avoid a fall through the $180 pivot level to support a run at the first major resistance level at $188.

Support from the broader market would be needed, however, for Litecoin to break out from this morning’s high $184.61.

Barring an extended crypto rally, the first major resistance level and resistance at $190 would likely cap any upside.

In the event of an extended rally, Litecoin could test resistance at 23.6% FIB of $195 before any pullback. The second major resistance level sits at $192.

Failure to avoid a fall through the $180 pivot level would bring the first major support level at $176 into play.

Barring an extended sell-off, Litecoin should steer clear of sub-$170 levels. The second major support level sits at $167.

Looking at the Technical Indicators

First Major Support Level: $176

Pivot Level: $180

First Major Resistance Level: $188

23.6% FIB Retracement Level: $195

38.2% FIB Retracement Level: $163

62% FIB Retracement Level: $110

Ripple’s XRP

Ripple’s XRP jumped by 10.37% on Friday. Following on from a 6.66% gain on Thursday, Ripple’s XRP ended the day at $0.56346.

A bullish start saw Ripple’s XRP rally from an early morning intraday low $0.51053 to a late morning intraday high $0.57628.

Ripple’s XRP broke through the first major resistance level at $0.5385 and the second major resistance level at $0.5648.

More significantly, also broke back through the 23.6% FIB of $0.5320.

Through the second half of the day, Ripple’s XRP fell back through the second major resistance level to sub-$0.55 levels.

Finding late support, however, Ripple’s XRP briefly broke back through the second major resistance level before ending the day at sub-$0.5640 levels.

At the time of writing, Ripple’s XRP was up by 0.94% to $0.56878. A bullish start to the day saw Ripple’s XRP rise from an early morning low $0.56749 to a high $0.57126.

Ripple’s XRP left the major support and resistance levels untested early on.

For the day ahead

Ripple’s XRP will need to avoid a fall through the $0.5501 pivot level to bring the first major resistance level at $0.5897 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from Friday’s high $0.57628.

Barring an extended crypto rally, the first major resistance level and resistance at $0.60 would cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at $0.62 levels before any pullback. The second major resistance level sits at $0.6158.

Failure to avoid a fall through the $0.0.5501 pivot would bring the 23.6% FIB of $0.5320 and the first major support level at $0.5239 into play.

Barring an extended sell-off, however, Ripple’s XRP should steer clear of sub-$0.50 levels. The second major support level sits at $0.4843.

Looking at the Technical Indicators

First Major Support Level: $0.5239

Pivot Level: $0.5501

First Major resistance Level: $0.5897

23.6% FIB Retracement Level: $0.5320

38.2% FIB Retracement Level: $0.4632

62% FIB Retracement Level: $0.3521

Please let us know what you think in the comments below.

Thanks, Bob

This article was originally posted on FX Empire

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