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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Okcoin Integrates With Polygon to Reduce Users’ Ethereum Gas Fees

The U.S. arm of the cryptocurrency exchange Okcoin has integrated with Ethereum layer 2 scaling project Polygon to allow users to directly access the decentralized finance (DeFi) ecosystem without using an Ethereum wallet.

The function of the integration is to allow users to avoid skyrocketing gas fees on Ethereum, which have gotten so high they are pricing some smaller players out of the burgeoning DeFi space.

Users can now withdraw any of the 13 available trading ERC-20 assets (including ETH, UNI, USDT, LINK, COMP and more) from their Okcoin wallet to Polygon’s sidechain. In doing so, users can save up to 25% on gas fees because they no longer have to bridge their assets from an exchange to an Ethereum wallet to Polygon, incurring two transaction fees for using the token bridge.

“Polygon has gotten tremendous early traction as a scaling solution and has taken the lead in scaling Ethereum,” said Okcoin COO Jason Lau. “Projects and users have both flocked to take advantage of the benefits it offers through much faster and cheaper ERC transactions. It’s seen both assets and transactions increase dramatically since the beginning of the year. Projects like Aave, Sushiswap, Balancer and 1inch also have integrations, so there’s a free flow through the Polygon network.”

Removing friction

Lau said this integration makes it quicker to get assets onto Polygon with one-click withdrawals. Transactions are also cheaper because users can skip their own wallets and move assets directly to Polygon.

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The user experience is also more streamlined, with Okcoin handling the complexities of bridging assets between the base layer and layer 2.

Lau pointed out that high gas fees are driven by Ethereum’s own increasing popularity, and Polygon is the one of the major players helping to scale the network. He said Okcoin’s integration with Polygon will make it easier to access layer 2 DeFi applications, with convenient payment rails such as debit, credit, Apple Pay and ACH.

The next steps involve giving users open access to the Polygon ecosystem for things like yield farming. This would essentially let users farm on Sushiswap, for example, directly via Okcoin, similar to the current Okcoin Earn function. With Earn, Okcoin covers gas fees and users can deposit stablecoin assets into DeFi liquidity protocols to earn annual percentage yield from protocols such as Curve, Yearn.Finance and Compound.

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.