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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Ethereum Nears USD 2,900 Level as Bulls Collectively Hold Their Breath
The mainstream financial media can no longer ignore the magnitude of the size of this market, and The Wall Street Journal has featured DeFi in a report today. Ethereum is touted as the key beneficiary of DeFi, considering most developers build their decentralized applications, or Dapps, on the Ethereum blockchain. Some of the more popular ones are Compound, Maker, Uniswap and SushiSwap, to name a handful.
There is currently more than USD 100 billion in total value locked (TVL) in the DeFi space, more than USD 60 billion of which is secured on Ethereum, up from USD 1 billion last year. TVL is a reflection of the amount of funds secured in smart contracts via tokens on projects. DeFi has been a driver of the Ethereum rally this year, as users look to bolster their returns using crypto derivatives and adding leverage to their bets. Last year, the Ether price was hovering below USD 200.
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.