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Ethereum

Time for an Upgrade

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This week we saw a massive surge in bitcoin that simply dominated the entire cryptocurrency market.

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Today, it seems we’re experiencing a bit of a pullback. The is quite normal of course. Any asset that can surge 62% in a week and a half should also expect a sizeable retracement after such a run.

The odd thing is that while bitcoin was rising it seemed to be taking some of the value from elsewhere in the market and other cryptocurrencies fell. Now that we’re seeing bitcoin fall back it’s a bit strange that the other cryptos are falling with it.

The total market cap of all cryptos reached a new all time high yesterday of $140 Billion but has since lost $10 Billion of that back.

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Something exciting could be right around the corner of this market but not for Bitcoin. As we’ll see below of of BTCs strongest peers may be about to get a huge boost.

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of August 16th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

Some up, some down, but nothing really moving far or fast in the stock market. Volatility is down from the highs we experienced at the beginning of the week but thankfully has not yet fallen to the record lows that we saw last month.

Moves in the currency markets have been a bit more telling with the US Dollar emerging as the underdog that has finally pulled off a sorely needed surprise victory.

The Dollar has been getting Bucked around since the beginning of the year but so far in August is managing some gains.

For now, support at 92 points on the US Dollar Index is holding well.

Oil also has found some temporary support. $47 has held nicely after Monday’s sell off. Today’s inventories announcement could play a key role in the next movement. We could be in for a bit of a battle at $48 though.

It seems that both bulls and bears could find this spot an attractive entry. As we can see in this chart, we’re very close to the top of the long term downward channel (yellow lines) but now sitting on the short term rising support line (blue). Let’s see how this plays out.

Ethereum About to Upgrade

With all the excitement around Bitcoin leading up to August 1st and since then Ethereum has kind of been kicked to the backburner of alternative investors minds.

The many proposed upgrades to the bitcoin network have certainly been controversial but Ethereum’s upgrades usually have a lot more consensus. Ethereum’s founder Vitalik Buterin holds a great influence over the ETH community and so it makes it easier for everyone to get on the same page once he’s given consent.

The new upgrade is called Metropolis and it will go into affect in the next few months.

Some of the features that we’re excited about are the ability to send transactions without revealing the senders address making for anonymous transactions. As well as allowing contracts to pay their own gas, a feature that will allow users to interact with an Ethereum based coin without actually having ETH in their wallet.

Metropolis will also reduce the reward for miners, which is a particularly potential price moving factor.

Ethereum has been rather stagnant lately so we’re very curious to see how the price will react as we near the implementation.

Wishing you an awesome day ahead!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

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4 Comments

4 Comments

  1. FalconX

    August 16, 2017 at 10:15 am

    I am curious to know how will the lower miner rewards effect the overall price of ETH?

    • Mati Greenspan

      August 17, 2017 at 9:17 am

      It changes incentives for mining as well as influencing supply and demand. How it will affect is not so clear cut but I’m reasonably sure that it will have an affect, especially over time.

  2. tieuthanhliem

    August 16, 2017 at 10:46 am

    When the update happen? I found some information that it will happen in 2018

  3. Mati Greenspan

    August 17, 2017 at 9:18 am

    I saw a post on reddit that said 40 days but wasn’t able to confirm. If you can find out I would be very grateful.

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Analysis

Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets

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Ripple has been the star of today’s session in the cryptocurrency segment, as the only major coin on a long-term buy signal in our trend model continued yesterday’s break-out, and surged to a new all-time high. The currency cleared the $0.425 level that marked the top in May, and after the more than 6-month long consolidation phase, it promptly neared the $0.50 level.

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While the short-term momentum indicators are now stretched, the coin is still in an encouraging long-term setup, although the best period to buy already passed. The coin could be dragged lower in the case of the expected broad correction in the segment, but we expect XRP to outperform in the coming period, with support levels found at the prior high and below that in the range between $0.30-$0.32.

XRP/USDT, 4-Hour Chart Analysis

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Ethereum has been the other top coin on the rise, as the second largest digital currency surged past the final range projection target of the break-out two weeks ago at $685 in the aftermath of the launch of the BTC futures on Monday. The ETH token is now also on a sell signal on all time-frames, and we advise investors and investors to wait for the next major correction to establish new positions. Support levels are now found at $575, $500, $480, and $400.

ETH/USD, 4-Hour Chart Analysis

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Analysis

Technical Analysis: Bitcoin Grinds Higher as Records Tumble in Altcoins

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The historical surge in the segment, which is the second such move this year, continued today, with another round of break-outs in some of the major altcoins and tepid gains for BTC investors. Ethereum, Ripple, Dash, and first and foremost Litecoin was leading the charge, with the recent star LTC topping $300, just after a day of hitting the $200 mark.

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Litecoin defied all odds after reaching extremely overbought readings, and the coin rode the speculative wave, turning exponential, not unlike IOTA and Bitcoin previously. With the coin being stretched in an unprecedented way on all time-frames, investors could even consider selling their core positions at the current levels, as a deep correction is almost granted in the coming period. The first meaningful support level is found at $125, and a re-test of the $100 level is probable during the next major correction.

LTC/USD, 4-Hour Chart Analysis

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Ripple finally ended a long period of relative weakness today, and the only major on a long-term by signal jumped over primary resistance at $0.26 and crossed the $0.30-$0.32 too in the euphoric sentiment. As the coin is not long-term overbought following the 6-month long consolidation, the buy signal in XRP remains intact, with the only major resistance level being found at the all-time high near $0.425.

XRPUSDT/USD, 4-Hour Chart Analysis

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Altcoins

Ethereum Flirts With Record Highs as Buterin Compares Crypto Surge to Salvator Mundi Auction

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Ethereum prices climbed to fresh records on Tuesday, as crypto mania picked up where it left off before the launch of bitcoin futures over the weekend.

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ETH/USD Price Levels

The value of ether touched an intraday high of $522.63, which was the highest level ever recorded for the world’s no. 2 cryptocurrency. Ether’s previous record was set on Saturday when prices crossed $518.

At press time, the coin was valued at around $513 for a gain of more than 8%. That gave ether a total market cap of nearly $50 billion. The cryptocurrency has added more than 4,000% this year, putting it among the world’s top altcoins.

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Trade volumes approached $2 billion over the previous 24 hours, which is equivalent to 118,000 bitcoin. Coinbase’s GDAX exchange had the highest turnover, with ETH/USD accounting for more than 9% of the volume. Bitfinex also processed more than 9% of ether transactions via ETH/USD. Meanwhile, Bithumb’s ETH/KRW cross saw 6% of the daily volume.

In all these cases, more than half a billion in ether was transaction.

Ether has successfully traded above $500 on several occasions, but has struggled to maintain those price levels. The previous record high was partly associated with the latest CryptoKitties craze, which promises frictionless trading of digital assets via blockchain.

Looking ahead, ether could struggle to break free from its recently defined trading range between $450 and $500. Although the market is slowly recovering from a congested network, record highs have been much harder to come by in recent months than other cryptocurrencies. By comparison, bitcoin has set multiple record highs over the same period. Several leading altcoins have also managed to climb to new heights on multiple occasions. Ethereum’s rally continues to be very much off-and-on.

Buterin Weighs In

Ethereum creator Vitalik Buterin recently compared the cryptocurrency market with the Salvator Mundi auction, which raised $450 million in November. The 23-year-old said growing interest in cryptocurrencies was “a reflection of the world at large. Buterin highlighted the growing popularity of CryptoKitties in sending his point across.

“I actually like the digital cat games,” Buterin said in a Dec. 4 tweet about CryptoKitties. “They illustrate very well that the value of a blockchain extends far beyond applications that would literally get shut down by banks or governments if they did not use one.”

Ethereum Use Cases on the Rise

Ethereum’s smart contract capability is being used by Switzerland’s largest banks to prepare for new European financial regulations. UBS announced Monday it has entered into partnership with Barclays, KBC and others to advance the MiFID II data collection initiative. The program will be driven by Ethereum smart contracts and run on the Microsoft Azure platform.

The combination of smart contracts and cloud will ensure banks can meet more stringent regulations on a common platform that will enable industry-wide reconciliation. Presently, these institutions must perform checks independently.

MiFID II will officially launch Jan. 3, 2018, and will replace the current regulatory directive.

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. 

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