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Ethereum Price Flirts With Yearly Low as ICOs Offload 157,700 ETH

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Ethereum was back on the defensive Tuesday, with prices approaching fresh yearly lows amid signs that initial coin offerings were offloading their ETH reserves.

ETH/USD Update

Ethereum’s price clocked in at a low of $187.89 on Bitfinex, where it was approaching its weakest level in over a year.  The second-largest cryptocurrency by market cap was last seen hovering near $189, down 4.2% from the past day. ETH/USD trade volumes amounted to 234,000 positions on Bitfinex, according to latest available data.

Ether’s technical indicators suggest a recovery is possible, though gains are likely to be minimal and short-lived. The coin is considered oversold based on the relative strength index (RSI). Price action is also deteriorating based on the 100-period moving average.

At current values, Ethereum is capitalized at $9.4 billion, according to CoinMarketCap.

Among the top-50 ERC-20 tokens by market cap, 38 had reported declines on Tuesday. All but one were down compared with last week.

The combined value of all cryptocurrencies in circulation has fallen to $193 billion.

ICO Cash-Out?

Ether-based initial coin offerings have spent 157,700 ETH over the past seven days, an amount that is equivalent to $29.9 million at today’s prices, according to data provider Santiment. That’s the highest spend since March of this year. While “ETH spend” has multiple meanings, there are strong indications that crypto startups were offloading ether for fiat on major exchanges.

According to cryptocurrency analyst Alex Kruger, roughly 4% of the ETH held in visible ICO wallets was transferred out during the month of August. That’s equivalent to 135,000 ETH, or $900 million at the time. Kevin Rooke, another crypto analyst, showed that ETH reserves held by ICOs fell to $600 million last week.

The ICO cash-out is one of several reasons behind ether’s 40% drop over the past month. A protracted bear market, concerns over scalability and fears of “economic abstraction” have all exerted downward pressure on the ether price. Ethereum co-founder Vitalik Buterin has also struggled to buoy investor confidence by suggesting that the crypto price boom has reached its ceiling.

As Hacked recently reported, short positions on ether reached record highs on Bitfinex, an ominous sign for traders expecting a reversal anytime soon.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 666 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Altcoins

Ethereum Price Analysis: ETH/USD Has Big Opportunity to Fly Again

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  • ETH/USD is running at seven consecutive sessions of losses, dropping as much as 25%.
  • Price action is moving within a strong demand area, which could very well see the price rocketing again.

Current Price Action

ETH/USD is stuck within a stubborn downward trend. The price is running at a seven consecutive session losing streak. During this time period, ETH/USD has dropped as much as 25%, falling from $226, down to recent lows of $171.95. This is the biggest weekly loss seen since the bear market back in September.

The price was trading in a consolidation manner; this had been the case after the above-mentioned bear market drop. ETH/USD at the time had dropped as much as 45%, before finally staging a recovery. Since the bounce on 12th September, price action began to form a bearish pennant pattern, which was then firmly broken on 14th November.

ETH/USD daily chart

Buying Opportunity  

At the time of writing, ETH/USD is seen trading deep within a known demand area. Buyers last pilled in and drove the price north, back on 12th September, as detailed above. It had gone on to gain a whopping 50%, following the hammer candlestick reversal confirmation. The demand can be eyed around the $170 territory.

Eyes should be on indications of a reversal, the potential for a signal from a candlestick formation, similarly to the prior mentioned recovery. In terms of the RSI via the daily time frame, ETH/USD is very much in oversold territory. The index seen around the 27 level at the time of writing, which could see the price soon bottoming out.

Upside Targets

Should life be kicked back into the bulls, another retest of the breached pennant pattern would likely be seen. Resistance underneath the pennant should be noted at the psychological $200 mark. The bears firmly ran through this price level on 14th November. Further north, another barrier can be observed at $230 area, a known supply zone.

There has been much debate over the past couple of months, as to whether the cryptocurrency market has hit the bottom. Many believed that this was the case, after the deep September drop. While some were still calling another corrective fall. Once some stabilization from the bulls is seen and recovery picks up momentum, this may be the last of the bears for 2018.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 54 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Analysis

Crypto Update: Coins Consolidate After Key Breakdown

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The cryptocurrency segment is still under the influence of this week’s key technical breakdown that carried several majors below crucial support levels. Bitcoin’s moves have been dominating the market in recent days, and as the most valuable coin formed a short-term bottom, the top coins entered a choppy consolidation phase, retracing some of their steep losses.

Ripple and Stellar continue to outperform the broader market from a technical perspective, and some other coins, like Ethereum and Monero are also holding up above their previous bear market lows, but the overall picture is still overwhelmingly bearish in the market. The total value of the coins is slightly above the $180 billion mark, but further losses are likely in the coming weeks, with all of the majors being well below the breakdown levels, confirming the move.                

BTC/USDT, 4-Hour Chart Analysis

Bitcoin found support near the $5350 price level even though it spiked as low as $5200 during the rout, while the bounce carried the coin up to $5650. The breakdown is clearly intact in BTC and our trend model remains on sell signals an all time-frames, with a test of the $5000-$5100 zone still being likely in the coming period.

Bitcoin faces strong resistance in the long-term zone near $5850, with further key levels at $6000, $6275, and traders and investors shouldn’t open new positions here, with the long-term downtrend clearly being intact.

XRP/USDT, 4-Hour Chart Analysis

Ripple overtook Ethereum in terms of market capitalization again, thanks to its relative strength this week, and the coin is still clearly holding up above the long-term support zone between $0.42 and $0.46.

That said, our trend model is still on a short-term sell signal, and given the bearish segment-wide trends traders shouldn’t enter new positions here, even as the coin will likely be among the leaders of the future rally attempts. Further support levels are found near $0.375 and $0.355, while resistance is still ahead at $0.51, $0.54, and $0.57.

Ethereum Holding Its Ground above Bear Market Low

ETH/USD, 4-Hour Chart Analysis

While Ethereum failed to recapture the $180 resistance level during the bounce, it also avoided a sustained move below the previous bear market low near $170, despite the spikes towards the $160 support. Ethereum short-term stability is a slightly positive sign, but without further signs of strength, the coin remains in a clearly bearish technical setup. With that in mind, traders and investors should still stay away from the coin, as odds still favor the continuation of the broader downtrend.

LTC/USD, 4-Hour Chart Analysis

Litecoin continues to trade below the $44 support/resistance level after the clear break to new bar market lows, and it remains one of the weakest major from a technical perspective. A move towards the next major support zone near $38 is likely in the coming weeks, even if a bounce up to the $47 level is in the cards. Litecoin is on sell signals on both time-frames in our trend model as well, with further strong resistance levels ahead at $51 and $56.

EOS/USD, 4-Hour Chart Analysis

EOS is hovering around the key support zone near $4.50 since a spike towards the bear market low near $4.30 during the steep selloff. The weak bounce didn’t change the technical setup, and the coin is still likely to fall below the previous low, as the declining long-term trend is clearly intact. Our trend model is on sell short-, and long-term trend signals, with strong resistance levels ahead at $5 and $5.35.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 396 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Ethereum

Amid the Crypto Selloff, Ethereum and XRP Battle for Second Spot

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A flash crash in the cryptocurrency market on Wednesday saw bitcoin’s total value fall below $100 billion for the first time since October 2017. It also left major altcoins Ethereum and XRP battling for second spot in the market cap rankings after the latter managed to hold up slightly better than its peers.

Battle for Second Spot Intensifies

As has been the case for the last few months, Ethereum is no longer the clear-cut no. 2 cryptocurrency on the basis of overall market cap. Over the last 24 hours, ether has fallen 13.5% to $170, where it was threatening yearly lows.

XRP, meanwhile, has fallen 10.5% over the same span to reach $0.4363.

Earlier today XRP posted a total market capof $18.14 billion, slightly higher than ether’s $18.09 billion, according to CoinMarketCap. This so-called “flippening” was first observed back in September after XRP posted a sudden and dramatic surge on the back of fundamental news and expectations of wider institutional adoption.

Interestingly, at the time of the last flippening, Ethereum’s price was trading comfortably above $220. Earlier in September, ether had experienced multiple large selloffs over concerns that the smart-contract protocol was losing relevance.

A cooling ICO market has also diminished demand for ether in the wider market. The amount raised via initial coin offerings plummeted to a mere $63.2 million in October, the lowest since March 2017 just before the token boom began, according to ICOData.io.

Crypto Downturn Accelerates as Bitcoin Cash Hard Fork Looms

Steep losses in ether and XRP reflect a much wider downturn that is showing little sign of dissipating. The combined crypto market cap fell below $180 billion on Thursday for the first time since October 2017, as traders rushed to liquidate their positions on virtual exchanges. Trade volumes on these platforms reached a high near $25 billion on Thursday.

The sharp selloff can be partially attributed to uncertainty over the upcoming bitcoin cash hard fork, which has the potential to split the BCH community in half. The hard fork process is expected to begin at 16:40 UTC. Craig Steven Wright, the self-styled Satoshi Nakomoto and main backer of bitcoin SV, has threatened to sabotage the chain “if/when DSV… hits the ABC fork”.

Wright has also threatened to tank the bitcoin price should existing miners switch to BCH. In a Wednesday tweet directed at bitcoin miners, Wright said the following:

“If you switch to mine BCH, we may need to fund this with BTC, if we do, we sell for USD and, well… we think BTC market has no room… it tanks.
Think about it. We will sell A Lot!

Consider that….

And, have a nice day

(BTC to 1000 does not phase me)”

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 666 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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