Monat: März 2023

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Ethereum Price Prediction: ETH forecast raised to $2,000

Ethereum price moved sideways on Thursday as investors reacted to the latest interest rate decision by the Federal Reserve. It was trading at $1,760, where it has been in the past few days. This price is about 52% above the lowest point this year.

Fed decision implications

The main catalyst for Ethereum on Thursday was the latest interest rate decision by the Federal Reserve. On Wednesday, as I had predicted here, the Federal Reserve decided to hike interest rates by 0.25%, bringing the main cash rate to 5%, the highest level in more than a decade. 

In its initial statement, the bank said that some of its officials favored pausing the hiking cycle as they assess the impact of the last increases. That part of the statement was seen as being dovish. However, in his press conference, Jerome Powell warned that the bank still had more room to hike interest rates in the coming months. 

Stocks and cryptocurrencies rose initially after the statement and then erased gains made earlier on. Stock market futures point to a flat open of the Dow Jones and the S&P 500 index. 

At the same time, the US dollar index has maintained a bearish trend in the past few days. It has crashed from last year’s high of $115 to $102. In most periods, Ethereum and the US dollar have an inverse relationship. Bitcoin, on the other hand, found resistance at $29,000.

Looking ahead, the next key catalyst for Ethereum will be the performance pf highly volatile bank stocks like PacWest and First Republic Bank. The two banks have been highly volatile as investors focus on their outflows. In most cases, Ethereum and Bitcoin are doing better when banking concerns remain since they are seen as safe havens. 

Ethereum price prediction 

The daily chart shows that the ETH price has been in a slow bullish trend in the past few weeks. It managed to move above the key resistance level at $1,771.36, the highest level on February 15. It is also being supported by the 50-day and 100-day exponential moving averages (EMA). 

Therefore, I am upgrading my Ethereum price estimate to $2,000, which is about 15% above the current level. The stop-loss of this trade with be at $1,600.

How to buy Ethereum

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Bitstamp

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Bitcoin fails at $29k – will the Fed meeting’s outcome trigger a selloff?

  • The Federal Reserve hiked the funds rate by 25bp
  • Bitcoin moved ahead of the decision and found resistance at $29k
  • An inverse head and shoulders’ neckline might be retested

All eyes were on the Federal Reserve meeting this week. The tensions in the financial market induced by the failure of several banks in the United States triggered uncertainty about what the Fed would do.

Stubbornly high inflation warranted a 50bp rate hike. But the banks are fragile, as seen lately, and such a hike might have done more worse than good.

The Fed opted for a 25bp rate hike, a compromise, and now we stand to see the effects.

Bitcoin rallied before the Fed’s decision. Earlier in March, it found support at $20k and rallied all the way to $29k without the US dollar moving much.

So what is the next possible move for Bitcoin?

Bitcoin chart by TradingView

A pullback to $24k might be on the cards

Technical traders might have spotted an inverse head and shoulders pattern forming in the last six months. The 2023 rally is part of the market’s attempt to reverse and head to the measured move, seen in orange above.

However, the neckline of such a pattern, seen in black above, is usually retested. This is a test of a bull market; if it holds, the price action will likely move toward the measured move.

But will it hold?

Those that bought Bitcoin in March might book half profits and move the stop to break even only to see what happens when and if the market hits the neckline at $24k. Because if the support does not hold, more downside might be in the cards.

The post Bitcoin fails at $29k – will the Fed meeting’s outcome trigger a selloff? appeared first on CoinJournal.

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Coinbase receives a Wells notice from the U.S. SEC

  • U.S. SEC issued a Wells notice to Coinbase on Wednesday.
  • Coinbase chief legal officer Paul Grewal’s remarks in response.
  • Coinbase stock slipped more than 10% in extended hours.

Coinbase Global Inc (NASDAQ: COIN) is trading over 10% down in extended hours after receiving a “Wells notice” from the SEC for potentially violating U.S. securities laws.

Here’s what we know so far

Remember that such a notice often signals the agency’s intent to formally press charges.

Still, Coinbase says the Wells notice does not provide enough information on potential violations and so it will stick to regular operations for now.

The company believes these potential enforcement actions would relate to aspects of the Company’s spot market, staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.

Last month, the Securities and Exchange Commission had issued a similar notice to Paxos (blockchain infrastructure platform) as well.

Chief legal officer Grewal’s remarks

The news arrives about a month after Coinbase reported its financial results for the fourth quarter that topped Street estimates.

On Wednesday, its Chief Legal Officer Paul Grewal reiterated that the company does not list securities. Speaking with CNBC, he also said:

If needed, we welcome a legal process to provide clarity we’ve been advocating for and to demonstrate that SEC simply has not been fair when it comes to its engagement on digital assets.

Grewal also maintained that Coinbase Earn is significantly different from staking services by Kraken that the SEC banned last month. Coinbase stock is still up 100% for the year at writing.

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Tether’s USDT receives major boost from Telegram

  • The Telegram messaging app facilitates buying and selling of crypto through its @wallet bot.
  • Telegram users can buy and sell BTC on the app’s wallet.
  • Besides, they can also send some of the cryptocurrencies via chats.

Tether’s USDT has been added to Telegram’s @wallet bot and the app’s users can now send and receive USDT via chats.

The move expands Telegram’s list of allowed cryptocurrencies on the @wallet bot.

Telegram’s cryptocurrency journey

Telegram’s crypto journey goes back years back when the messaging app started developing the Open Network (TON) blockchain network that initially harboured the Toncoin (TON) token although the project was later abandoned in 2020 after legal battles with the US Securities and Exchange Commission (SEC).

Telegram however kept the TON project alive despite abandoning the Open Network. Members of the Telegram community called The TON Foundation have since continued to advance the TON project.

And although Telegram is not directly involved in TON, it still maintains an interest in the blockchain network, especially seeing that the messaging app last year announced it was building a blockchain-based auction platform called Fragment.

Cryptocurrencies allowed on @wallet bot

Last year (2022), Telegram added Bitcoin (BTC) and Toncoin (TON) to the @wallet bot. In addition to addition, Telegram users are allowed users to send Toncoin (TON) within chats.

Today, March 22, 2023, Telegram has added Tether’s USDT to the list of cryptocurrencies allowed on the @wallet bot marketplace. The stablecoin has also been added to the list of tokens that can be sent within Telegram’s chats.

Stablecoins like USDT offers a number of benefits since they are relatively immune to price volatility that often affects the likes of bitcoin and Ethereum. Including USDT in the @wallet bot, therefore, presents a lot of benefits for Telegram users involved in cryptocurrencies.

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