Kategorie: Ethereum News

Ethereum price made a strong bearish breakout on Thursday as investors reflected on the latest minutes by the Federal Reserve. ETH crashed to a low of $1,820, which was the lowest level since May 12th this year. 

Fed to be more restrictive

Ethereum and other cryptocurrencies came under intense pressure in the past few sessions as investors reflected on the latest Fed minutes.

On Wednesday, the minutes showed that members were increasingly more hawkish than what the market was expecting.

Before the minutes, most analysts were expecting that the Fed will deliver two 0.5% rate hikes in the upcoming two meetings. They also expected it to move to the normal 0.25% rate hikes in the next meetings. 

The minutes published on Wednesday showed that the bank was actually more hawkish than that. This means that it will deliver several 0.50% hikes and then start slowing its balance sheet.

The Fed is attempting to solve the twin challenge of lowering inflation while at the same engineering a soft landing. In most cases, this is usually an extremely difficult situation.

Learn more about how to buy Ethereum.

Ethereum price is falling since these are uncertain times for cryptocurrency traders. They have never lived through a situation when the Fed is hiking rates aggressively.

There are other challenges that are driving Ethereum prices. For one, there are still concerns about the decentralized finance industry after the Terra implosion. The total value locked (TVL) in Ethereum’s DeFi protocol has crashed to $68 billion from its all-time high of almost $175 billion.

Further, the NFT and gaming industries that helped Ethereum have all recoiled. Recent data show that NFT sales have plateaued while the number of gamers in places like Axie Infinity and Decentraland has declined. So, what next for Ethereum prices?

Ethereum price forecast

The current Ethereum price action was easy to predict. In the past few weeks, the coin has been forming a bearish flag pattern that is shown in blue. Historically, this pattern is usually a bearish sign. The coin has moved below the 25-day and 50-day exponential moving averages.

Further, Ethereum had formed an inverted cup and handle pattern, which is usually a bearish sign. It also did a break and retest pattern as it retested the lower side of the pattern. Therefore, the coin will likely do a bearish breakout as bears target the next key support at $1,500.

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Ethereum (ETH) has fallen below $2000 once again. The coin had managed to post some gains after bottoming at $1700 a few weeks ago. However, that upward momentum has slowed, and we may see some decline. But this is not necessarily something to worry about. Here are some key points:

• The recent decline below $2000 doesn’t appear to be strong

• ETH will likely rebound almost instantly in a few days

• The coin will regain $2000 and trigger a buying frenzy that pushes ETH to $2400

Data Source: TradingView 

Ethereum price analysis and prediction

After falling to $1700 just two weeks ago, ETH has managed to hold out. There were worries that the coin would touch $1000 in what could have been its worst downtrend this year. However, ETH quickly recaptured $2000 but has since lost it again. In fact, over the last 7 days, the coin has struggled to maintain the price above the $2k mark. 

However, we expect this time round things to be different. Although ETH is slightly below $2k, the coin will likely regain this important threshold in the days ahead. This will send a crucial bullish signal that will likely trigger demand for ETH. The coin will shoot up to $2400 before it slows. 

But there are some important risks. For example, if the current fall below $2000 turns out to be more serious than expected, this thesis becomes invalidated. If anything, failure to hold the $1800 support could push ETH toward $1500 in the short term.

How to profit from ETH in the short term?

The long-term value of Ethereum has never been in doubt. But short-term volatility will be here for the rest of the year. 

The best way to profit right now is to buy once the price consolidates above $2000. But if you are not sure about the possible risks, you can watch the coin and see if it breaks $1800. Once this happens, $1500 will be a great entry point.

The post Ethereum (ETH) could target $2400 despite falling below $2000 again appeared first on Coin Journal.

• Solana NFTs saw $295 million in volume during April
• Integration with OpenSea has boosted entire ecosystem
• Near-zero gas fees and low barriers to entry mean new NFT traders increasingly flocking to Solana
• Not Okay Bears derivative on Ethereum highlights how far Solana has come

 

NFTs exploded onto the scene in 2021, with $17 billion in sales throughout the year. So far this year, despite the extreme risk-off environment with assets red across the board, this report from Chainalysis shows that volume in the NFT space is stabilising.

With every long-term indicator pointing towards longevity in the space, I thought it would be interesting to assess where these sales are taking place, and whether Ethereum still remains king.

One trend jumped out pretty swiftly – the growth of Solana.

OpenSea

In the short history of NFTs, the vast majority of volume has occurred on Ethereum, mostly on OpenSea, the marketplace built originally for Ethereum. That is beginning to change, however. OpenSea recently integrated with Solana, a watershed moment for Solana NFT collections that to date had been limited to marketplaces exclusively for Solana collections, such as Magic Eden and Solanart.

In another poignant moment, a derivative collection called Not Okay Bears was removed yesterday from OpenSea, after complaints from Okay Bears collectors. Traditionally, it has been the other way around – knock-off collections launching on Solana, but a high-profile imitation on Ethereum feels like a seminal moment for Solana.  

Sticking with Okay Bears, they are currently the hottest collection on Solana, trading at a floor price of 222 SOL ($11,500) and with a stout volume of 1.5 million SOL ($77 million) over the last month – and that’s on Magic Eden alone. On OpenSea, they have done almost an identical amount of volume in the last month, placing seventh on the leaderboard – with only six collections from Ethereum above them.

Okay Bears floor price and volume (in SOL) has been on an upward trend all month

Bored Ape Solana Club

Staying within the sphere of derivatives, another poignant case is that of Bored Ape Solana Club (BASC)– the Solana version of Bored Ape Yacht Club (BAYC) on Ethereum. This is different from the Not Okay Bears situation in that the derivative collection here is more of a homage than a knock-off. BASC even became verified on OpenSea, seeing volume and floor price rocket shortly afterwards.

Last month, following the chaos of the Otherside launch from Yuga Labs, the creator of BAYC, I wrote here about how exclusive the Ethereum NFT world had become. It felt like a Bored Ape 1% Club, as sky-high prices and onerous gas fees priced ordinary investors out from getting involved.

The concentration of wealth in the NFT space was getting worryingly high, while the centralisation of the space was a real concern – Yuga Labs have the top three collections on OpenSea and also own the IP rights to CryptoPunks, not to mention their tweets last month that they want to start their own blockchain.  

Solana gives the ordinary investor access to the NFT world, tearing down barriers to entry with its basement-low gas fees and easy-to-use interface. For fun, I even bought the below Ape from the BASC to quell my dissatisfaction from the Yuga Lab fallout. The fees I paid were a fraction of a cent, and the entire process couldn’t have contrasted more with the ultra-exclusive BAYC counterparts on Ethereum.

 

Instagram and Coinbase

This week also brought the news that Meta-owned Instagram is to test a feature allowing users to display NFTs as their profile pictures. Meta confirmed that while the initial test launch is limited to Ethereum and Polygon, Solana is to be added at a later date. Coinbase also announced their intention to expand to Solana once their Ethereum NFT ecosystem is up and running.

Growth

This access for the little guy that Solana offers is starting to catch on. More and more new investors are choosing Solana rather than Ethereum for their first foray into NFTs, for the same reasons I went to Solana to purchase my above Ape. There were 9.2 million transactions on Magic Eden vs 1.67 million on OpenSea over the past month, according to this report.

It should be caveated, however, that this chasm in transactions is skewed largely due to bot activity. However, the growth trends are clear – Solana is expanding at a rapid pace, with floor prices of the main collections increasing over the last month, in contrast to what is happening on Ethereum.

Perhaps more accurate than transaction count is volume, and according to DappRadar, the Solana NFT market jumped 91% in April, with volume of $295 million. Looking back over the last 30 days from today, the meltdown has reduced the dollar volume, but the SOL volume is up significantly. Indeed, when considering the pullback in the wider market, the fact that volume over the last 30 days across the top 14 marketplaces is $274 million (at the current SOL price of $52) is an extremely bullish sign.

The below graph shows the bulk of this volume has been taking place on Magic Eden and OpenSea.

Conclusion

In conclusion, it’s been a massively bullish period for Solana NFTs. While the crypto market has been a bloodbath – and the Solana token has not been spared – the long-term trajectory for the ecosystem remains upward.

Ethereum quite simply cannot compete with the almost-zero barriers to entry that Solana offers to NFT investors. Flipping NFTs, playing around with different collections and buying on a whim is all possible on Solana, with fees a fraction of cent per transaction. This is simply not viable on ETH, exacerbated by the dominance of the top collections, which layer in huge prices on top of the onerous gas fees.

Then again, unless you’re spending a lot on a very expensive NFT, Ethereum is not feasible to use given you lose so much on gas – meaning it continues to solidify itself as a blockchain for the elites, when it comes to NFTs at least. For the ordinary investor looking to invest amounts that are very much in the non-life-changing numbers, then Solana simply makes more sense.

The market is starting to realise this.

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Ethereum (ETH) has been recovering over the last few days after tanking to its lowest level in months. The coin is however poised for a bigger bounce based on momentum indicators. But it still faces major upward resistance and downside risk. Here are some important facts:

• ETH reclaimed $2000 after facing a major sell-off this week

• RSI divergence and the moving average convergence divergence show signs of bullish momentum

• But ETH still remains pressured below crucial resistance zones

Data Source: Tradingview 

Ethereum (ETH) – How it will hit $2500

At the moment, it doesn’t seem like investors are willing to buy any coins. This is a seller’s market, and there are fears that the crash we saw this week is only the beginning. Despite this, we still think that many coins will bounce back in the short term, and ETH is one of them. 

Momentum indicators in particular appear to suggest that Ethereum is going to rise. The RSI divergence and the moving average convergence divergence show positive bullish signs. If indeed ETH is able to keep the price above $2000, then a surge towards $2500 will be possible. However, it won’t be that easy. 

For starters, ETH still has to overcome several crucial resistance zones, including its 50-day EMA of around $2,349. Also, the rally we saw in the broader market yesterday could be short-lived. These risks could make it harder to ETH bulls to take over in the short term.

Will Ethereum return to $5,000 this year?

Ethereum was predicted to do pretty well in 2022. Some analysts were even targeting $10,000 before the year is out. 

But based on what has happened in the market over the last few months, it now seems unlikely the coin will achieve such heights. However, a return of $5000 is very possible. But ETH will suffer from very high volatility before it gets there.

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The cryptocurrency market is slowly recovering from its recent slump and has added more than $100 billion to its market cap in the last 24 hours.

The broader crypto market has had a poor week up till Thursday. The market lost nearly $400 billion over the past few days.

However, the sentiment has improved over the past 24 hours, with the market up by more than 11% during that period. The total crypto market cap currently stands at $1.3 trillion.

Bitcoin remains the market leader and is trading above $30,000 once again. It is up by more than 8% in the last 24 hours.

Ether, the second-largest cryptocurrency by market cap, is also up by more than 8% in the last 24 hours. It is now trading above $2,000 and could rally higher over the coming hours and days.

The market sentiment has been negatively affected by the Terra crisis. However, with the Terra blockchain now officially halted, the market could embark on a recovery journey in the coming days.

Key levels to watch

The ETH/USD 4-hour chart remains bearish despite Ethereum’s ongoing positive performance. Ethereum has not fully recovered from the bearish trend that has negatively affected its price in recent weeks.

The MACD line is still below the neutral zone. However, it is improving and could enter the positive region if the bulls continue to be in control of the market.

The 14-day RSI of 40 shows that ETH is no longer in the oversold territory. At press time, ETH is trading at $2,069. If the rally continues, it could surge past the first major resistance level at $2,180 before the end of the day.

In the event of extended bullish performance, ETH could move past the second major resistance level at $2,308 over the next few hours or days.

However, ETH could lose its support level at $2,000 if the bears regain control of the market. Ether should comfortably defend its price above the second major support level at $1,890. 

The post Ether maintains its price above $2k as the market slowly recovers appeared first on Coin Journal.