Kategorie: Ethereum News

Today morning, Ethereum price plunged by about 10% after staging a very promising recovery rally last week. The sudden drop caught the majority of traders and investors by surprise.

Most crypto traders were expecting Ethereum to maintain the bullish trend as it heads to its much-awaited “Merge” upgrade.

But why the sudden drop? What happened or what caused the second largest cryptocurrency to lose so much in such a short time?

Large selling volume

While there is no major news touching on Ethereum or its ecosystem, there has been a relatively large Ethereum selling volume on the market after bears started to sell their ETH holdings actively.

The huge sell-off has pushed the liquidation of Ethereum to almost $100 million, causing the price to drop sharply.

Today’s plunge marks the third unsuccessful attempt by Ethereum to break towards $2,000. This leaves the fate of the recent recovery rally in jeopardy since Ethereum has to first recoup what it has lost before continuing with the rally.

And although there is a lot of hype around the upcoming “Merge” upgrade, uncertainties have arisen following the huge sell-off. A majority are asking themselves why there should be such a huge sell-off for a coin if it is expected to perform better after the upgrade.

Some investors believe what we are seeing is a bear trap that will become the catalysts for another bearish reversal pushing the prices to new lows.

Secondly, the planned decrease in ETH supply after the “Merge” does not auger well with investors since some believe there is not enough push for investors to see the need to acquire more coins.

The post Ethereum drops by almost 10% within hours after a promising rally: here’s why appeared first on CoinJournal.

Polygon, a decentralised Web3 infrastructure and Ethereum scaling solution, has launched Polygon zkEVM (zero-knowledge Ethereum Virtual Machine), a layer 2 solution that leverages zero-knowledge proofs to offer seamless transactions buoyed with reduced costs and increased throughput.

The batching of transactions support allows for significant reduction of gas fees, while it also supports faster settlement of deposits and withdrawals – an attractive aspect for DeFi developers.

Advancing Web3 infrastructure

The zkEVM also offers frictionless functionality with all smart contracts, wallets and developer tools, tapping into the same robust security that secure the Ethereum blockchain.

Polygon zkEVM also allows for developers to migrate decentralised applications (dApps) from EVM-compatible chains via a simple switch of nodes. They don’t have to change the code, tooling or smart contracts when they migrate from EVM-compatible to zkEVM.

The solution thus boasts the three main features that are crucial to the Web3 ecosystem – scalability, security and Ethereum-compatibility – which Polygon co-founder Mihailo Bjelic called the “holy grail of Web3 infrastructure.”

“Until now, it has not been practically possible to offer all these properties at once. Polygon zkEVM is a breakthrough technology that finally achieves that, thus opening a new chapter of mass adoption,” he commented.

The L2 solution supports seamless minting of NFTs, Web3 gaming and enterprise applications. In all these, developers get the benefits of higher throughput and low fees (Polygon believes its zk-rollups can cut fees seen on the Ethereum network by 90% and that a future off-chain feature could push the fees even lower).

The post Polygon announces zero-knowledge EVM rollups to boost Web3 infrastructure appeared first on CoinJournal.

• Ethereum remains intact at above $1,000 despite hot inflation numbers

• The price gained by double digits on Friday

• Ethereum has formed inside bars and is gearing for a breakout

Ethereum ETH/USD remains in a bear market despite double-digit gains on Friday. However, Ethereum lovers have something to be optimistic about its price. 

Ethereum has kept the $1,000 level intact. This is good news considering that the cryptocurrency was weighed by the inflation data on Wednesday. At the current $1,198, Ethereum is still pushing higher. A higher than expected 9.1% inflation jump rattled markets. At the very least, cryptocurrencies were expected to remain suppressed due to high inflation. The latest gains in Ethereum confirm that investors are developing a thick skin. It means that the cryptocurrency has somewhat started to price in the high inflation environment.

We cannot confirm that Ethereum is bullish after the latest gains. However, we believe the cryptocurrency is heading for a major breakout. The breakout will usher in a bullish era and end speculations of a potential slump to as low as $700. The chart below reveals it all.

Ethereum forms inside bars at key support

Source – TradingView

On the weekly chart, Ethereum has formed multiple inside bars at minor support of $1,000. The inside bars are a communication of market indecision. However, we are drawn to the fact that Ethereum has been in a bearish market. The indecision is a potential indication of bear exhaustion and entry of buyers. Furthermore, the price has been gaining, suggesting a potential bullish reversal.

A potential breakout of the inside bars from the mother bar will make Ethereum bullish. The breakout will occur at around $1,440, allowing ETH to reclaim another support. 

Concluding thoughts

Ethereum’s breakout of the inside bar pattern will confirm a bullish reversal. Buyers will be safe buying at around $1,440, which will be the support after the breakout.

The post Ethereum eyes a breakout, and bulls could be preparing to pounce in appeared first on CoinJournal.

Ethereum and Cardano fit the bill in terms of environmental consciousness 

Key points:

• The EU has come up with crypto regulations, and one of the critical areas of focus is the environmental metrics of cryptocurrencies. 

• Cardano and Ethereum are among the cryptocurrencies that perfectly align with these regulations.

• Aside from compliance with regulations, these two cryptocurrencies are growing in real-world adoption. 

Recently, the European Union developed a raft of regulations to bring sanity to the crypto market. The regulations also give an idea of how cryptocurrency regulations could go globally. They also offer an idea of the best cryptocurrencies to buy going into the future. 

One of the critical aspects of the regulations is that cryptocurrencies will be required to declare their carbon footprint. This is an indicator that going forward; the EU will be more pro-environmentally friendly cryptos.

From an investor perspective, this is also a pointer to the type of cryptocurrencies that are likely to find more favor with investors going forward. Below are the top-ranking cryptocurrencies to keep an eye on after the EU regulations.

Cardano

One of the key reasons why Cardano (ADA) became a thing in the first place is to deal with the environmental costs of Proof-of-Work cryptocurrencies like Bitcoin and Ethereum. As such, it is perfectly in line with the new EU regulations. That said, Cardano is a lot more than just environmentally-friendly crypto.

Cardano also happens to be one of the most technologically advanced cryptocurrencies. Its Ouroboros Proof-of-Stake algorithm is one of the best because it strikes a perfect balance between security, decentralization, and scalability.

On top of that, Cardano has gained significantly in adoption. For instance, in places like Ethiopia and Rwanda, the Cardano blockchain is already being used to streamline government systems. Since it is in the developing world that such systems are needed the most, Cardano is on the right track to adoption and value growth.

That’s why it stands out as the top crypto to watch now, even as the crypto bear market persists.

Ethereum

For years, Ethereum (ETH) has been bad for the environment since it uses a Proof-of-Work algorithm. However, since 2020, it has been transitioning to Proof-of-Stake, in what’s popularly known as Ethereum 2.0.

Ethereum has made significant strides on this front, and a testnet merge of Ethereum and Ethereum 2.0 is complete. It is widely expected that in a month or so, Ethereum will be running as Ethereum 2.0 and use only a tiny percentage of the energy it was using when running as Proof-of-Work.

Besides being in line with the new EU guidelines, there are many other reasons why Ethereum looks attractive as an investment. One of them is security. In the altcoins market, Ethereum is easily the most secure and decentralized. After the events of the last few months, where some cryptos have collapsed, Ethereum’s security is likely to see it attract more investors in the EU and outside.

The post Top cryptos most compliant to new EU crypto regulations appeared first on CoinJournal.

Ethereum price has struggled in the past few months as investors remain concerned about several factors. The ETH token is trading at $1,083, which is significantly lower than its all-time high of near $5,000. The coin’s market cap has dropped to about $131 billion. At its peak, Ethereum was valued at over $600 billion.

DeFi, NFT, Gaming growth concerns

Ethereum price has crashed as investors continue worrying about the rising inflation and the strong US dollar. Data published on Wednesday revealed that America’s inflation surged to 9.1% in June of this year. This was the biggest increase in more than 41 years.

Inflation has an impact on Ethereum and other cryptocurrency prices. For one, high inflation pushes the Federal Reserve to embrace an extremely hawkish policy. In return, this policy tends to push the value of the US dollar much higher. 

Learn more about how to buy Ethereum.

Indeed, the US dollar index has surged to $108, which is the highest level it has been since 2002. A strong US dollar usually devalues the prices of other financial assets that are priced in the currency. Unfortunately, Fed is expected to double down by implementing a 100 basis point rate hike later this month.

Ethereum price has also crashed because of the ongoing performance of key sectors like gaming, decentralized finance (DeFi), and non-fungible tokens (NFT). In the past few months, the total value locked (TVL) in DeFi has crashed from over $250 billion to about $73 billion. In this period, the TVL in Ethereum has dropped to about $45 billion.

The same trend has happened in the gaming industry. The number of active players in an Ethereum platform like Axie Infinity has dropped to below 500k. Decentraland has also seen waning user growth. 

Further, the volume of non-fungible tokens (NFT) traded on a daily basis has declined significantly in the past few months.

Ethereum price prediction

The daily chart shows that the ETH price has been falling in the past few months. Most recently, the coin has formed a horizontal channel that is shown in blue. This channel resembles a bearish flag pattern. It has also moved below the 25-day and 50-day moving averages.

Therefore, because of the bearish flag, there is a possibility that Ethereum will soon have a strong bearish breakout as sellers target the support at $888, which was the lowest level this year.

The post Ethereum price bearish flag points to a major crash soon appeared first on CoinJournal.