Ethereum Could Overtake Bitcoin, Messari Analyst Says

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What Happened: Ryan Watkins, an analyst at cryptocurrency research firm Messari, believes Ethereum (CRYPTO: ETH) could surpass Bitcoin (CRYPTO: BTC) to become the most valuable cryptocurrency.

In a recent interview with Fintech Today, Watkins said that the shift towards Ethereum 2.0 would bring about some changes in the coin’s monetary policy, which could lead to Ether (ETH) taking over as the leading cryptocurrency in the future.

Why It Matters: According to Watkins, Bitcoin’s unique selling point as a “store of value” asset is the fact that its monetary policy is very predictable.

“I think that the shift to Ethereum 2.0 and proof of stake, which is kind of like a new way of securing the Ethereum blockchain….Ethereum may actually be more secure than Bitcoin”, he said.

Watkins pointed out that the new monetary policy brought about by Ethereum 2.0 would lead to ETH being a deflationary asset, as more of the token’s supply is burned every year.

While this would undoubtedly lead to a higher value proposition for Ethereum, the Messari analyst highlighted how the rise in DeFi (decentralized finance) applications being built on the Ethereum has further propelled the blockchain’s utility in the crypto space.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – March 20th, 2021

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Ethereum

Ethereum rose by 1.86% on Friday. Partially reversing a 2.63% loss from Thursday, Ethereum ended the day at $1,809.38.

A bearish start to the day saw Ethereum slide to an early morning intraday low $1,734.29.

Ethereum fell through the first major support level at $1,740 before rallying to a late intraday high $1,840.69.

The rally saw Ethereum break through the first major resistance level at $1,832 before falling back to sub-$1,810 levels.

At the time of writing, Ethereum was down by 0.41% to $1,802.01. A mixed start to the day saw Bitcoin rise to an early morning high $1,812.58 before falling to a low $1,801.29.

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 $1,795 to support a run at the first major resistance level at $1,855.

Support from the broader market would be needed, however, for Ethereum to break out from Friday’s high $1,840.69.

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 $1,950 before any pullback. The second major resistance level sits at $1,901.

Failure to avoid a fall through the $1,795 pivot would bring the first major support level at $1,749 into play.

Barring an extended sell-off, however, Ethereum should steer clear of sub-$1,700 levels. The second major support level sits at $1,688.

Looking at the Technical Indicators

First Major Support Level: $1,749

Pivot Level: $1,795

First Major Resistance Level: $1,855

23.6% FIB Retracement Level: $1,579

38.2% FIB Retracement Level: $1,292

62% FIB Retracement Level: $830

Litecoin

Litecoin rose by 0.09% on Friday. Following a 3.13% slide on Thursday, Litecoin ended the day at $199.91.

A choppy start to the day saw Litecoin saw Litecoin slide to an early morning intraday low $195.80 before making a move.

The reversal saw Litecoin fall through the first major support level at $196.

Story continues

Coming within range of the 23.6% FIB of $195, Litecoin rallied to a late morning intraday high $204.95.

Falling short of the first major resistance level at $206, however, Litecoin eased back to end the day at sub-$200 levels.

At the time of writing, Litecoin was down by 0.39% to $199.14. A mixed start to the day saw Litecoin rise to an early morning high $200.17 before falling to a low $198.73.

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

For the day ahead

Litecoin would need to move back through the $200 pivot level to support a run at the first major resistance level at $205.

Support from the broader market would be needed, however, for Litecoin to break out from $200 levels.

Barring an extended crypto rally, the first major resistance level and Friday’s high $204.95 would likely cap any upside.

In the event of an extended rally, Litecoin could test resistance at $215 before any pullback. The second major resistance level sits at $209.

Failure to move back through the $200 pivot level would bring the first major support level at $196 and the 23.6% FIB of $195 into play.

Barring an extended sell-off, Litecoin should steer clear of sub-$190 support levels. The second major support level at $191 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $196

Pivot Level: $200

First Major Resistance Level: $205

23.6% FIB Retracement Level: $195

38.2% FIB Retracement Level: $163

62% FIB Retracement Level: $110

Ripple’s XRP

Ripple’s XRP fell by 0.37% on Friday. Following a 0.25% decline on Thursday, Ripple’s XRP ended the day at $0.46727.

A bearish start saw Ripple’s XRP fall to an early morning intraday low $0.45902 before making a move.

Ripple’s XRP fell through the 38.2% FIB of $0.4632 and the first major support level at $0.4602.

Finding morning support, Ripple’s XRP struck a mid-day intraday high $0.47499.

Falling short of the first major resistance level at $0.4839, however, Ripple’s XRP fell back to sub-$0.47 levels and into the red.

At the time of writing, Ripple’s XRP was down by 0.34% to $0.4657. A mixed start to the day saw Ripple’s XRP rise to an early morning high $0.46672 before falling to a low $0.46557.

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

For the day ahead

Ripple’s XRP will need to move through the $0.4671 pivot level to bring the first major resistance level at $0.4752 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from Friday’s high $0.47499.

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

In the event of an extended rally, Ripple’s XRP could test resistance at $0.4850 before any pullback. The second major resistance level sits at $0.4831.

Failure to move through the $0.4671 pivot would bring the 38.2% FIB of $0.4632 and the first major support level at $0.4592 into play.

Barring an extended sell-off, however, Ripple’s XRP should steer clear of sub-$0.45 levels. The second major support level at $0.4511 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $0.4592

Pivot Level: $0.4671

First Major resistance Level: $0.4752

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

Should You Chase Ethereum Here Or Wait For A Pullback?

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In my previous article on Ethereum (ETH) from three weeks ago, I was “… looking for a somewhat tricky, whipsawing, move higher, ideally to around $1880+/-40, but it could even challenge the recent all-time high. From there, I expect several weeks of downside back to $1200+/100. After that, I anticipated the next rally to ~$3000+. However, a weekly close below $1200 targets $900…”

Fast forward, and ETH topped this week, so far, at $1891. Thus, using the Elliott Wave Principle (EWP) and Technical Analysis (TA) was once again a powerful way to forecast the price levels to be reached three weeks in advance. Therefore, it is time to become more cautious by, for example, raising stops, maybe take (partial profits), etc.

In this week’s update, I would like to look at the weekly and monthly charts to better understand ETH’s big picture potential (months to years out). See Figure 1 below.

Figure 1. ETH weekly and monthly charts with EWP count and technical indicators.

A retest of 1200+/-100 and then rally to new all-time highs.

As you can see, the weekly and monthly charts feature two different EWP wave-labels, but both point to higher prices (anticipated paths). The weekly chart’s EWP points to two more rallies (black major-5 and blue Primary-V) after an initial pullback (major-4) before this Bull run is over. Whereas the monthly chart suggests, we could see three more rallies (add purple Cycle 5). I always have an alternate (more Bullish) EWP count for Bull runs like ETH is in to ensure my Premium Crypto Trading Members do not miss out or get caught on the wrong side. The market will eventually tell me which one is correct: “anticipate, monitor, and adjust if necessary.”

What we do know, with all certainty, is that the weekly technical indicators (RSI5, MACD histogram, FSTO, and MFI14) are all negatively diverging (red squares). Although divergence is only divergence till it is not, it means ETH is now moving higher on less strength, less momentum, and less liquidity. The latter is essential because liquidity drives markets. If the buying dries up, only selling is left. However, ETH is well-above all its important Simple Moving Averages (SMAs), which are all rising and Bullishly stacked: 10w>20w>50w>200w). Thus this is still a 100% strong, Bull market.

Story continues

The monthly chart is different as there are no negative divergences on the technical indicators. Instead, the RSI5 is getting very overbought, suggesting there’s less room for upside left over the next 1-2 months. See the 2017 rally for example. However, the monthly Money Flow is still strong, and so is the MACD. Only the FSTO is not in favor of more upside.

Nonetheless, also on the monthly chart, the SMA setup is 100% Bullish: ETH is well-above its rising SMAs, which are also Bullishly stacked: 10m>20m>50m. Thus, this is still a 100% robust, long-term Bull market. Hence, the one-degree higher EWP count compared to what is labeled on the weekly chart has merit.

Bottom line

ETH’s weekly and monthly charts are 100% Bullish and suggest plenty of upside left over the coming months to years. However, negative divergences are creeping in on the weekly chart suggesting a pullback is most likely imminent. A daily close below $1657 will be a severe warning that the $1200+/-100 level will be revisited to complete a more significant correction before ETH can move to new ATHs again.

Buy Ethereum with Binance

This article was originally posted on FX Empire

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