16% Ethereum price rebound activates a classic bullish pattern — $2.5K next?
Ethereum’s native crypto Ether (ETH) rebounded sharply on Thursday after Elon Musk disclosed for the first time that his private rocket firm SpaceX holds Bitcoin (BTC), and Tesla would probably resuming the bitcoin payment option for its electric cars.
The BTC/USD exchange rate was below $30,000 but bounced by more than 5% after the big reveal, touching an intraday high of $32,895. Ether, which tends to move in lockstep with the flagship cryptocurrency, surged likewise.
Ether was holding onto its previous session’s gains on Thursday. Source: TradingView.com
It reclaimed $2,000 on Wednesday, rising by as much as 18.20% from its week-to-date low of $1,720.
Lukas Enzersdorfer-Konrad, chief product officer at financial services company Bitpanda, told Cointelegraph in an email statement that Ethereum would continue tailing Bitcoin in the coming sessions.
“As soon as the “big brother” finds its support level,” he added, “Ethereum will most likely follow suit.”
Classic pattern sets $2.5K target for Ethereum
The latest bounce in the Ethereum market also originated from a support level that had earlier capped Ether’s downside attempts.
Independent market analyst, known by the pseudonym Rekt Capital, flashed a so-called “orange area” on a weekly ETH/USD chart, illustrating three bearish wicks and their ability to shied the pair from falling lower.
“ETH has rallied +16% since rebounding from the orange area,” the analyst explained, coupling the price floor with a support trendline that apprehensively constituted a Falling Wedge.
In detail, Falling Wedges are bullish reversal patterns that start wide at the top but start contracting as the prices move lower, forming a sequence of lower highs and lower lows. A bullish confirmation comes when the price breaks above the Wedge’s upper trendline with a spike in volumes.
In doing so, bulls place their upside profit target as up as the maximum wedge height.
Ether prices almost check all the boxes when it comes to trading inside a Falling Wedge pattern. Rekt Capital highlighted the same in a chart he published Thursday.
Ether falling wedge setup highlighted by Rekt Capital. Source: TradingView.com
“As long as ETH holds the bottom of the structure as support until the end of the week, [it] will confirm a return to the structure after briefly losing it earlier this week,” added Rekt Capital.
The maximum distance between the Wedge’s upper and lower trendline is roughly $850. Therefore, according to the classic technical setup, a breakout above the upper trendline could send the prices to at least $2,500.
Related: Decoupling ahead? Bitcoin and Ethereum may finally snap their 36-month correlation
Nonetheless, the prices still risk falling sharply below $2,000 based on a short-term technical setup, as shown in the chart below.
ETH falling wedge setup on its daily chart. Source: TradingView.com
The daily Ethereum chart shows price could fluctuate between $1,850-2,080 before the potential bullish breakout, noted Rekt Capital.
Kirkpatrick and Dalquist’s book titled “Technical Analysis” notes that falling wedges have a failure rate of just 8% to 11%. Moreover, the possibility of a bearish breakout has a higher failure rate of 15% to 24%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The Ethereum 2.0 Testnet is Growing Fast: Here’s Why It Matters
Data Suggests Ethereum Investors Are In For The Long Run, Despite Bearish Price Movements
On-chain data collected from glassnode shows that more investors are staking their Ether on the Ethereum 2.0 testnet than ever before. Those who stake their Ether on ETH2 will not be able to sell their tokens until the testnet goes live, which likely won’t be until 2022.
DETROIT, July 21, 2021 /PRNewswire/ – Benzinga, a fintech media company providing news and data to retail investors and cryptocurrency traders, publishes its latest data study: Data Suggests Ethereum Investors Are In For The Long Run, Despite Bearish Price Movements.
Data shows that more validator nodes are being created on Ethereum than ever before. Intuitively, this makes sense. It costs 32 Ether to create a validator node on the ETH2 testnet, which cost over $130,000 when ETH was trading above $4,000.
Ethereum staked on Ethereum 2.0 cannot be withdrawn until Ethereum’s mainnet migrates to proof of stake in the upcoming ETH2 upgrade. However, there isn’t a set date that Ethereum plans to upgrade, and it’s likely that this won’t happen until 2022.
About 5% of Ethereum’s total supply is currently locked into the ETH2 testnet. At current prices, the aggregate value of this staked Ether is around $10 billion. As more Ether gets staked on ETH2, less supply will be available for sale on exchanges.
Benzinga regularly conducts data studies and publishes its findings. Read Benzinga Reports: Bitcoin Predicted to Crush Bitcoin’s ROI in 2021 for more data like this.
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View original content:https://www.prnewswire.com/news-releases/the-ethereum-2-0-testnet-is-growing-fast-heres-why-it-matters-301338813.html
SOURCE Benzinga
Ethereum Whale Account Transacts 100,000 ETH Coins Amid Price Dip
Ethereum, the world’s second-largest cryptocurrency, has fallen sharply in price over the last few days. Amid the dip, an ETH whale has transferred a significant amount to an unknown wallet. The value of the transaction — 100,000 ETH coins, around $181 million (roughly Rs. 13,500 crores) — was highlighted by Whale Alert, a blockchain tracker and analytics company. Hours after the transaction, Ethereum has been showing an upward trend, gaining more than 6 percent in just 24 hours. Given the positive market trend, the person who bought the digital coins stands to benefit hugely from the transaction.
In the world of finance, a “whale” is an entity with enough power to impact the market of an asset by triggering massive transactions. However, the main issue with whale accounts is that they often accumulate billions worth of digital coins, allowing them the capability to influence the cryptocurrency market single-handedly.
According to data published by Whale Alert, the transaction took place around 9:30 PM (IST) on Monday. At that time, Ethereum price was around Rs 1.36 lakh. However, in the past 24 hours, the crypto coin has gained more than 6 percent in value, showed Coinbase data.
Even on its official Twitter handle, Whale Alert mentioned about the transaction. “100,000 #ETH (181,944,560 USD) transferred from #Gemini to unknown wallet,” read the tweet.
In a similar large transaction earlier in June, a cryptocurrency whale had transferred 50,000 ETH coins “from unknown wallet to unknown wallet”, Whale Alert had reported.
Ethereum, the Bitcoin rival, has an estimated market capitalisation of Rs 16.2 trillion, according to Coinbase. The recent fall in its price has been partly attributed to one of its co-founders quitting the cryptocurrency industry.
Anthony Di Iorio, who helped build Ethereum in 2018, said he was quitting the cryptocurrency ecosystem because he wants to solve “large problems”. The 48-year-old told Coindesk that he doesn’t want to be known “as a crypto person”, but instead wants to be known as a “problem solver”.
Di Iorio said he plans to sell his stake in Decentral, a blockchain startup, and move to “larger world problems”. He’s reportedly involved in Project Arrow, working on creating a zero-emission vehicle.
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