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 “Killer” Solana Surges 14% on a Slow Market Day

The crypto market is continuing its steady, if uneasy, recovery. Among winners today was Solana’s SOL surged 14% overnight to land on a price of $18.22 per token. continuing a stride that has helped the token grow over 30% in value since last weekend.

The surge could be related to news that some fresh capital hit the Solana network this week in the form of a $40 million boost from two key investors: the crypto exchanges OKEx and MXC.

Developed by a team of former Intel and Dropbox engineers, Solana was last year touted as a potential ‘Ethereum killer’ due to the fact that its blockchain has fewer fees and can process up to 50,000 transactions per second. Though Ethereum began a phased launch of its 2.0 upgrade last year (with expectations of up to 100,000 TPS in a few years), it’s still locked at about 14 TPS.

Ethereum stagnated a bit today, and grew less than a percent overnight. A single ETH coin is now worth $1,707. Still, that’s almost 4% cheaper than it was last weekend.

Binance, Bitcoin, and the altcoins

BNB holders can enjoy an optimistic start to their day. As of lunchtime UTC on Sunday, Binance Coin gained over 5% in value to trade at a price of $271. That’s still 20% shy of its ATH of $343 last month, but its price has been closely tracking Bitcoin’s.

Bitcoin grew 2% in the last 24 hours to reclaim its $56k price tag, though given that it set an all-time high of $61.7k only a fortnight ago, it only serves as an uncomfortable reminder of crypto’s inherent instability.

Bitcoin’s price pulled back last week, with a particularly heavy 10% plunge occurring overnight on Thursday. The US economy is recovering and with it, the US dollar has gained in value once again. The two events are very plausibly related, as Bitcoin’s worth as a store of value is intimately tied with global confidence in fiat currencies.

One other big overnight winner worth mentioning is THETA, which is now trading for $12.41. That’s 4.33% more than it was going for 24 hours ago, making for almost 50% growth since last weekend.

In the top 20 cryptocurrencies by market capitalization, Klaytn deserves the silver medal though. It grew to $3.50 overnight, adding almost 8% to its value.

Today the markets can best be described as patchy, though with a current global market cap of $1.76 trillion it’s clear crypto won’t be going anywhere anytime soon.