Schlagwort: crypto business

Ethereum price has been in a consolidation phase in the past few days as the excitement about the recent Merge event faded. ETH was trading at $1,316 on Monday, which was much lower than August’s high of over $2,000. It has crashed by more than 60% in 2022.

Ethereum is in consolidation

ETH price has been in a tight range as investors wait for the next catalyst. The coin remains close to its lowest level since July 17th of this year. Notably, this price action mirror’s that of Bitcoin, which has remained at $20,000 in the past few weeks. 

Ethereum has also consolidated at a time when American shares have been in freefall recently. The four main indices – Dow Jones, S&P 500, Nasdaq 100, and Russell 2000 – all declined by more than 10% in September while the US dollar index surged to the highest level in more than two decades.

Historically, Ethereum tends to have an inverse relationship with the US dollar. It also often tracks the performance of American indices, which are often seen as risk assets. 

Ethereum consolidated as investors focused on the most recent merge event. This was an event that transitioned the network from a proof-of-work (PoW) to a proof-of-stake (PoS) platform. As a result, it has become a more environmentally-friendly platform.

A key issue is on what the Securities Exchange Commission (SEC) will do. In his recent statements, Gary Gensler warned that Ethereum was transitioning into a security by letting people stake their coins for rewards. As such, it is unclear whether the agency will pursue the matter.

Meanwhile, Ethereum price remained under pressure as investors assess the deteriorating ecosystem. For example, recent data shows that NFT volume has crashed by 97% from its peak in January. Similarly, the volume of funds locked in Ethereum has crashed from over $150 billion to about $50 billion.

Ethereum price prediction

The daily chart shows that ETH/USD price has been in a consolidation phase and is trading at $1,317 where it has been in the past few days. It has dropped below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) is hovering above the oversold level. 

Ethereum seems like it has formed a bearish flag pattern. Therefore, the coin will likely have a bearish breakout in the next few days as sellers target the next key support level at $1,000. As such, you should wait for a new bullish trend to form before you buy.

How to buy Ethereum

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It’s the unfortunate reality that any crypto lender these days will be met with scrutiny, as the market still reels from the chaos caused by Celsius earlier this year.

Nexo has to date separated itself from the crowd. Last week it even announced a stake in federally chartered Summit National Bank. It has repeatedly stated it will steer clear from uncollaterised lending. It even launched a takeover bid for Celsius as the embattled lender was spiralling into insolvency (even if there is a chance that it was only a publicity stunt).

But now there is added concern after regulatory trouble and some curious on-chain movement.

Regulation

Eight states filed cease-and-desist orders against Nexo last week. It is the same old story surrounding whether the products offered constitute securities. I won’t get into the ins and outs because I’m no lawyer, but the threat of requiring to withdraw certain products from the US market could obviously squeeze Nexo hard.

Regulators in Kentucky actually accused Nexo of being insolvent, declaring that without its native token – NEXO – the firm would have “liabilities (that would) exceed its assets”. For anyone with a short memory, that’s exactly what Celsius led before they suspended withdrawals and filed for bankruptcy.

With the Nexo token having an extremely low trading volume of 1% of its market capitalisation, what people don’t realise is that if everything does turn upside down, the ability of Nexo to monetise its holdings is significantly less than one would believe on-paper. Hnece the concern.

Nexo moving money on-chain

The second part comes with a funny withdrawal on-chain that had people curious. A wallet labelled a Nexo wallet yesterday withdrew over $150 million from MakerDAO.

https://twitter.com/WuBlockchain/status/1576016313918836736

Obviously, this has a lot of people concerned given the parallels with the Celsius situation. For what it’s worth, it would surprise me if any insolvency for Nexo came amid a period of relative market calm.

However, the fact cease-and-desist orders were issued by regulators recently does add an extra layer here. But then again, the issue of security-or-not-a-security has hardly been unpredictable – Nexo should have, and likely did, know this was coming.

After the moves drummed up some controversy in the market, Nexo issued a statement clarifying that “this routine transaction made yesterday represents a loan repayment in line with the latest market dynamics and as per the company’s standard treasury management.” 

My take on this? I still believe Nexo are OK, but if I had funds in there I would definitely be a little more nervous today than I was last week. Like I said as Terra was going down, the yield on offer for these products right now simply is not worth the risk. Most offer yields of around 4% on Bitcoin (Nexo’s base rate is 3%-4%) – are you really willing to risk it all for that? 

It is also strange that Nexo did not warn the market in advance to quell any concern, as this too would have been obvious.

The smart risk-reward play right now is just to sit out the yield-generating products for now until we have a clearer picture. Because even though I think Nexo are OK and this is likely a much furore about nothing – I am on record discussing how well I believe Nexo I run in relation to a lot of other firms in the industry – we really can’t know for sure…and that says it all.  

The post Is Nexo safe? Crypto lender withdraws $150 million from MakerDAO appeared first on CoinJournal.

MKR, the native token of the MakerDAO ecosystem, is one of the best performers in the cryptocurrency market following last week’s announcement.

MKR, the native token of the MakerDAO ecosystem, is outperforming most of the coins and tokens in the top 100 list. The token has added more than 1% to its value in the last 24 hours, outperforming the broader crypto market.

The total crypto market cap remains above $900 billion despite losing more than 1% of its value in the past 24 hours.

Bitcoin, the world’s largest cryptocurrency by market cap, could drop below the $19k support level as it is down by more than 1% in the last 24 hours. Ether is down by more than 2% so far today and is trading below the $1,300 support level. 

MKR has added more than 4% to its value so far today, outperforming the other coins in the top 100 list. MKR has been performing well over the past few days as it is up by more than 12% in the last seven days.

Total delegated MKR is at an all-time high!

There are now 142.67k MKR delegated to 23 Recognized Delegates and 92 Shadow Delegates, and a total of 187.83k MKR locked into the Maker Governance contract. pic.twitter.com/yxjmi36NBI

— Maker (@MakerDAO) September 29, 2022

The rally comes after MakerDAO announced a few days ago that the total delegated MKR is at an all-time high. 

The team said there are now 142.67k MKR delegated to 23 Recognized Delegates and 92 Shadow Delegates, and a total of 187.83k MKR locked into the Maker Governance contract.

Key levels to watch

The MKR/USD 4-hour chart is bullish as MKR has been performing well over the past few days.

MKR/USD Chart By TradingView

The 14-day RSI of 60 shows that MKR could enter the overbought region if MakerDAO sustains its positive momentum. The MACD line remains above the neutral zone, indicating bullish momentum. 

At press time, MKR is trading at $773 per coin. If the bulls remain in control, MKR could surge past the $811 resistance level for the first time since August.

However, it would need the support of the broader crypto market to move past the $844 resistance level in the short term. 

Where to buy now 

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Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600. Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.

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