Ethereum approaches crucial resistance zone – Here is why $3200 is happening

Ethereum (ETH) has continued to report modest gains as it steadies up the price action over the last few days. The coin is now approaching a very crucial resistance, and there is a real chance it will reclaim it. What does this mean? Well, here are some pointers:

  • Ethereum (ETH) has now surged to a weekly high and is expected to continue.

  • The coin is getting closer to its 50-day EMA of $2820.

  • At press time, ETH was trading at $2810, up about 4% for the day.

Data Source: Tradingview 

Ethereum (ETH) – Why $3200 is happening

The $2820 support is crucial for one main reason. If ETH reclaims it, it will be the first time in a few weeks it has surged above its 50-day exponential moving average or EMA. This often indicates a bullish trend is starting to form. 

Also, the last time Ethereum rallied from this zone, it went on to hit $3600. The coin has also hit weekly highs, and as sentiment in the market improves, it’s only a matter of time before it tests $3200.

The most important thing now will be for bulls to hold $2820. If they can do this at the end of the week, then we will be in bullish territory for ETH. But a failure to do so will send the coin to the next support of $2600.

Is Ethereum Struggling?

A lot of things have been happening in the Ethereum ecosystem. There is a big shift towards Ethereum 2.0, which will usher in a proof of stake model. But market volatility has hampered growth for the coin. 

This will remain the case for the near term. But we believe that ETH will find sufficient demand in the long term and could still end the year at $10,000. But so many downside risks still pose major challenges.

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Downside pressure could push Ethereum (ETH) towards $1800

It’s unimaginable to think right now that Ethereum (ETH) could fall below $2000. It will mean that the coin will be right in the middle of a bear market. But it is actually possible thanks to several downside risks. We will highlight them in detail below but first, here are several highlights:

  • The biggest risk comes with the possible launch of Ethereum 2.0.

  • As Ethereum 2.0 merge with the Beacon chain, it will trigger severe selling across multiple exchanges.

  • This could push ETH towards $1800 in the near term.

Data Source: Tradingview

Ethereum (ETH) – Why is the Merge risky?

Ethereum has been talking about a move towards a proof of stake consensus for a while now. This is expected to make transactions faster and cheaper on the chain. But merging the proof of stake with the current Ethereum Mainnet will have its risks. 

In fact, experts warn that it will trigger major selling across all exchanges, something that could sink ETH towards $1800. Besides, Ethereum has shown very little upward momentum in recent days. The coin is now trading at around $2500 and has struggled to clear the $3000 mark. 

We are still not sure when the migration towards Ethereum 2.0 will happen. But recent reports indicate that final testing is already underway. The good news is that the possible drop will rebound faster than other dips.

Why Ethereum 2.0 is a good thing?

Although the merge towards Ethereum 2.0 is a high-impact event that will increase volatility for ETH, it is actually a very good thing. After all, the biggest challenge for Ethereum has always been the slow speed of its network and the high gas fees. 

A move towards Ethereum 2.0 will fix this. It would mean now that more apps and projects will come on Ethereum. This will have a huge impact on the chain and its future growth.

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Following the dips – Top crypto assets to watch in the recent slump

The crypto market has dipped quite significantly in the last two weeks or so. Bitcoin for instance has tanked below $40,00 after recently testing $45,000. It’s not clear when the downtrend will abate. But even then, there are still some decent dips that you can consider. Here is why:

  • The current dip has been triggered mostly by geopolitical factors.

  • There is no significant systematic risk in the market as of now.

  • The crypto market is expected to rebound in the near term.

So, if you want to ride the coming recovery after the recent slump, then we have some assets to watch out here below:

Ethereum (ETH)

Ethereum (ETH) was predicted to hit $10,000 in 2022 after a very good performance in 2021. But the coin has not started the year in the same fashion. After slumping to around $2000 in January, we saw some decent bullish momentum at the start of this month. 

Data Source: Tradingview 

At some point, ETH was even about to thrust over $4000. But ever since, the coin has fallen. At press time, it was trading at around $2500. We expect ETH to bounce back to $3200 in the near term, so it’s a great dip to check out.

Near Protocol (NEAR)

The fundamentals of the Near Protocol (NEAR) have often been quite decent to say the list. But the coin is really bleeding right now, losing over 20% in the last 7 days. Although a rebound won’t come soon, it will manifest eventually. NEAR is at the moment is trading at $8.63, a massive discount considering the potential it has.

Theta Network (THETA)

Theta Network (THETA) has also been in the crosshairs of the Ukraine-Russia tensions. The coin has fallen by over 25% in the last 7 days. This weakness is likely to continue of course but there is still a lot of upsides to gain once the market rebounds.

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REVEALED: Research claims a former crypto CEO hacked The DAO in 2016

  • Laura Shin says that investigations point to former TenX CEO as the man behind the hack on The DAO.
  • The alleged hacker has reportedly denied the accusation.

Crypto journalist Laura Shin says that extended research and investigation around the infamous hack on The DAO in 2016 was able to unearth the identity of the hacker as one Toby Hoenisch, an apparent well-known figure within the crypto space.

The senior Forbes contributor revealed she worked with blockchain analytics firm Chainalysis to trace the DAO funds’ movement.

Who hacked The DAO? My exclusive investigation, built on the reporting for my new book, The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze, appears to point to Toby Hoenisch, a 36-year-old programmer who grew up in Austria and was living in Singapore at the time of the hack,” Shin wrote in an article published Tuesday, February 22.

Shin adds that Hoenisch has until the articles’ publication a well-known figure whose crypto profile includes being the co-founder and CEO of TenX, an $80 million initial coin offering (ICO) project that failed to live up to expectations.

The alleged hacker denies DAO hack

According to Shin’s article, Hoenisch has denied being the hacker behind the 2016 attack that saw The DAO lose 3.64 million ETH tokens.

Hoenisch is said to have replied to an email detailing his role by saying that the “statement and conclusion” indicated were “factually inaccurate.”

But investigations by Shin and blockchain analytics platform Chainalysis, tracking a 50 BTC transaction to a Wasabi Wallet was able to unmask the hacker as Hoenisch.

Per the research, Chainalysis was able to use never-before-revealed monitoring technology to “de-mix” the bitcoins and trace them to four exchanges.

Blockchain research helps identify hacked funds

From one of the exchanges, the alleged hacker swapped the BTC for the privacy coin Grin. These tokens were then sent to a Grin node that analysis showed as grin.toby.ai. The IP address of this particular node was also connected to other nodes such as ln.toby.ai and lnd.ln.toby.ai, with another linked to TenX.

For anyone who was into crypto in June 2017, this name may ring a bell. That month, as the ICO craze was reaching its initial peak, there was an $80 million ICO named TenX. The CEO and cofounder used the handle @tobyai on AngelList, Betalist, GitHub, Keybase, LinkedIn, Medium, Pinterest, Reddit, StackOverflow, and Twitter. His name was Toby Hoenisch.

Apart from these “links”, Shin says Hoenisch had been an active individual around The DAO, severally emailing the platform’s developers Slock.it.

The story has just broken after Shin’s book was published and it is now likely a lot more could be revealed, including from those Hoenisch emailed.

The DAO remains one of the largest thefts in the crypto space, even though the hacker never managed to cash out all the stolen funds. At the time in 2016, The DAO’s stolen funds amounted to about $60 million.

Today, that would be nearly $10 billion following Ether (ETH) prices rallying from lows of $20 then.

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Vitalik Buterin: Crypto would “welcome” another winter

  • Vitalik Buterin says crypto winters help developers focus on projects and not the speculation that dominates during bull markets’
  • Weak projects fade away in bear markets, he added.
  • Bitcoin and Ethereum have seen major losses since touching their all-time highs in 2021.

Ethereum co-founder Vitalik Buterin has commented on the current crypto market outlook, noting in an interview with Bloomberg that a crypto winter would likely be “welcome” in the digital asset space.

The people who are deep into crypto, and especially building things, a lot of them welcome a bear market,” he said.

According to him, many of these developers ‘welcome’ a crypto winter- a period where the markets experience a prolonged bearish run with crypto assets trading lower or sideways.

Bear markets are when weak projects fade away

In a bull market, many people get excited by the “long periods of prices moving up by huge amounts,” he noted. However, even as many people enjoy the soaring markets, it tends “to invite a lot of very short-term speculative attention.”

Commenting on why an extended bear market could be of benefit to the digital space, Buterin told Bloomberg:

The winters are the time when a lot of those applications fall away and you can see which projects are actually long-term sustainable, like both in their models and in their teams and their people.”

The Ethereum co-founder’s comments on projects fading away mirror similar observations across the crypto industry. After the 2017 bull market and initial coin offering (ICO) boom, a bear market followed over 2018, with assets choppy till a new bull market set in 2020.

Of the hundreds of projects to launch and benefit from the hype that sent prices skyrocketing, the majority have since faded.

Buterin wasn’t categorical if the crypto market is indeed in a crypto winter already. However, his observations come as Bitcoin (BTC) and Ethereum (ETH) have led the broader crypto market in battling a brutal drawdown since late last year.

The crypto guru made the comments during the annual ETHDenver conference.

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