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New Milestones for Ethereum as Ropsten Public Testnet Merge Date Revealed

Earlier this week, a pull request was submitted by an Ethereum DevOps engineer for the Ropsten testnet Merge configuration code that can be seen in the GitHub repository. For the uninitiated, the Ropsten testnet was created by Ethereum Foundation nearly five years ago and is considered one of the best replicas for the Ethereum blockchain.

The Merge

The merge, which marks the end of the PoW-style architecture, will essentially combine the two layers in a single PoS-based chain. According to Prysmatic Labs’ Terence Tsao, the genesis for the Ropsten testnet Merge is slated for May 30.

Lead developer Tim Beiko earlier confirmed that the merge on the mainnet is likely to go live a few months after June and not anytime sooner.

But the Ropsten merge will demonstrate the actual merge between Ethereum and the Beacon Chain as the network finally completes its transition. Ethereum core developer Preston Van Loon also acknowledged that this event is a huge testing milestone towards ETH’s mainnet merge that is set to happen later this year.

However, with the merge inching closer, the devs have been deploying tests in new infrastructures to study network mechanics and client readiness.

For instance, the “Shadow fork” went live in April, a mechanism to “stress test our assumptions around syncing and state growth,” as Parithosh Jayanthi, an Ethereum Foundation developer, explained. The test enables developers to find critical vulnerabilities in the code that could be otherwise unnoticed using the devnets.

Ethereum Foundation Ups the Ante

In light of the recent development and the upcoming merge, Ethereum Foundation also announced merging its PoW mainnet and PoS consensus layer bug bounty programs into one. The max reward has also been bumped up to $250,000 for reporting bugs on the Ethereum protocol. Rewards can also be doubled to $500,000 during crucial events.

“As the Execution Layer and Consensus Layer become more and more interconnected, it is increasingly valuable to combine the security efforts of these layers. There are already multiple efforts being organized by client teams and the community to further increase knowledge and expertise across the two layers. Unifying the Bounty Program will further increase visibility and coordination efforts on identifying and mitigating vulnerabilities.”

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ETH Price Analysis: Warning Signs for Ethereum as Bears Push Below $2,000

The cryptocurrency market is still in a state of uncertainty and fear. Ethereum is no exception, and any upward attempt is faced with immediate sell pressure. Will the bulls be able to regain control of the market?

Technical Analysis

By Grizzly

The Daily Chart

On the daily time frame, ETH is moving downward inside a falling wedge (in yellow). It is important to note that this wedge bottom is aligned with the horizontal support level of $1700 (in green), which can be a potential trend reversal point.

As a result, if the bulls can defend the green zone, the price will be more likely to move towards the static resistance at $2450. On the other hand, if the bears continue to suppress the market and break below the green support zone, the price is more likely to enter an extended regression phase.

Key Support Levels: $1700 & $1500

Key Resistance Levels: $2200 & $2450

ethchart_1
Source: TradingView

Moving Averages:

MA20: $2376

MA50: $2818

MA100: $2835

MA200: $3301

The ETH/BTC Chart

Against Bitcoin, ETH is trading on dynamic support (in green) that has prevented further drops in price four times in the past. The main concern is that the bears have managed to make an unconfirmed break and appear to be in control of the situation. On the other hand, horizontal support at 0.065 (in orange) can also be considered a level to withstand the increasing bearish momentum.

If the BTC price breaks below a major static level, the entire altcoin market is historically proven to follow with an amplified correction.

Key Support Levels: 0.065 BTC & 0.06 BTC

Key Resistance Levels: 0.07 BTC & 0.072 BTC

ethbtcchart_1
Source: TradingView

On-chain Analysis

Estimated Leverage Ratio

Definition: The exchange’s open interest is divided by their coins reserve, which shows how much leverage traders use on average. Increasing values indicate more investors are taking high leverage risk in the derivatives trade.

chart1
Source: CryptoQuant

On the chart, one can see that this metric has started moving upwards again, indicating that investors are taking more risks. The consequent outcome is probably significant volatility and then a cascade of liquidations. After all, throughout a bearish phase, a de-leveraging phase has frequently led to a bullish trend in the market.

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The High Bitcoin and Ethereum Correlation With Wall Street Continues

The past several weeks have been quite the negative turmoil for the cryptocurrency market, as it all started at the end of March. Interestingly, this coincides with a similar drop for the largest US-based stock market indexes, which led to a multi-month high in terms of correlations between Wall Street and crypto.

The Market Meltdowns

Following the rocky start of the year, bitcoin and most altcoins started to regain traction in March. BTC alone spiked to nearly $50,000 after slipping below $35,000 six weeks earlier.

The US stock market was in a similar position. All of its benchmark indexes – namely, the S&P 500, the Dow Jones, and Nasdaq Composite – went down prior to March but peaked at the end of it.

This is where the landscape started to change as the US Federal Reserve began raising the interest rates after years of looser policies. The crypto community is painfully aware of what happened in the digital asset space in the following month and a half. In fact, BTC had sliced its value by half at one point and struggles at around $30,000 as of now.

The significantly more regulated and less volatile by nature US stock market indexes have experienced more modest declines in the same timeframe but are still well in the red. The Dow is down by 12%, the S&P by 15%, while Nasdaq, propelled by the correction in the tech sector, has seen a 22% decrease.

Yesterday became the worst trading day since the early days of the COVID-19 pandemic, with losses of up to 5%. The futures contracts declined as well, bringing fears of a bear market, while today’s market opening brought some more pain.

Crypto-US Stock Correlation Spikes

Given the aforementioned data, the blockchain analytics resource IntoTheBlock concluded that the correlation between the two largest cryptocurrencies – BTC and ETH – and the three most prominent US stock market indexes has increased to multi-month highs.

In fact, the company revealed that the 30-day correlation is above 0.9 (the highest is 1) and noted that “crypto is moving almost in tandem with traditional equities.”

At the same time, gold, traditionally regarded as a safe haven asset with little-to-no positive correlation with riskier options like stocks and crypto, peaked in early March but has also declined heavily since then.

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Bitcoin Stalls at $30K, Ethereum Struggles to Remain Above $2K (Market Watch)

Bitcoin failed at decisively overcoming $31,000 and has retraced by over $1,000 to a familiar ground of approximately $30,000. Most altcoins are also slightly in the red today, with Ethereum fighting to stay above $2,000. Polkadot has lost the most from the larger-cap alts.

Bitcoin Stalls at $30K

Last week was nothing short of a volatile rollercoaster for bitcoin, in which the asset plummeted by $15,000 at one point from $40,000 to a multi-month low of $25,300. After recovering around $5,000 in the following few days, the tides changed, and this week has been significantly calmer, at least for now.

The most substantial price increase came two days ago when BTC spiked to and beyond $31,000. However, it failed at that point, reversed its trajectory, and came back down to below $30,000.

Something similar transpired yesterday as BTC traded above that coveted level for most of the day. Now, though, the cryptocurrency is beneath that line, and its market cap is down to $570 billion. Its dominance over the alts remains rather still at just over 44%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

ETH Fights for $2K, DOT Slumps

The alternative coins have mimicked BTC’s performance to a large extent in the past ten days or so, with massive plunges last week and a calmer outlook since the weekend.

Ethereum tried its hand at $2,100 yesterday but failed there, and the subsequent rejection has driven it back down to around $2,000.

Binance Coin touched $310 yesterday but sits $10 lower now after a minor daily decline. Similar decreases are evident from Ripple, Solana, Cardano, Dogecoin, Avalanche, and Shiba Inu.

Polkadot has lost the most in the past 24 hours. A 6.5% drop has pushed DOT to just over $10. TRON and Litecoin are among the few larger-cap alts with minor increases.

The crypto market cap has remained stagnant as well and is close to $1.3 trillion.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto
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Cloudflare Provides Public Access to its Ethereum and IPFS Gateways

Web infrastructure platform Cloudflare has announced supporting the development and deployment of Ethereum for its customer through its Ethereum and IPFS gateways. From now on, Cloudflare customers can log into the dashboard and configure a zone for Ethereum, the InterPlanetary File System (IPFS), or both.

Ethereum Gateway

As one of the fast-growing data storage firms, Cloudflare positions itself as an underlying web infrastructure that powers a range of blockchain-based applications.

Cloudflare’s Ethereum Gateway lets users read and write access to the ETH network without installing any software on their computers. In particular, they can read and access all information that the existing nodes on the blockchain have validated without barriers.

According to the company’s recent blog post, it has created a new API with end-to-end managed hostname deployment, ensuring that the creation and management of gateways remain speedy and frictionless.

One of the striking features, as described, is that a new testnet support is installed to “ensure new development can be easily tested, hardened, and deployed to the mainnet without incurring additional risks to the blockchain network.“

To further demonstrate its infrastructural support to web3 applications, the post outlined that DeFi protocols can use the Cloudflare IPFS gateway to serve their front-end web applications. Additionally, NFT designers can use the Ethereum Gateway to drop new offerings and the IPFS gateway to store the digital assets in a decentralized system.

Also, Dapps, with a high volume of traffic, can use its service to avoid web congestion.

Cloudflare Supports Ethereum’s PoS Transition

Cloudflare also cited Ethereum’s upcoming transition to Proof of State through “the Merge” as a critical moment for solving the “scale and environmental challenges that face blockchain technologies today.” The company stated it will continue to support Ethereum’s PoS transition.

“Over the next few months, Cloudflare will launch, and fully stake, Ethereum validator nodes on the Cloudflare global network as the community approaches its transition from Proof of Work to Proof of Stake with ‘The Merge.’ These nodes will serve as a testing ground for research on energy efficiency, consistency management, and network speed.”

By running Proof of Stake validator nodes on its network, Cloudflare confirms that it has not and will not run Proof of Work infrastructure.

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ETH Managed to Reclaim $2000, But Is the Storm Over? (Ethereum Price Analysis)

Since the sharp drop in the crypto markets three days ago, Ethereum was able to recover about 14% from its lowest level at $1,800. However, the daily candlesticks structure remains weak.

Technical Analysis

Technical Analysis By Grizzly

The Daily Chart

On the daily timeframe, $1700 is considered a long-term support level for ETH, which has prevented further price drops in May, June, and July 2021.

Although this level has not been broken down yet, the ETH price did not repeat the immediate bounce back, like the last three occasions in 2021. To understand the reason behind this weak reaction to this multi-year static support, it should be reminded that the macro-economic conditions are different from last year, which is affecting risk assets – both global and crypto markets.

As it seems now and given the current price action, there are two possible scenarios:

Scenario A: Bulls push the price above the horizontal resistance at $2450, and ETH forms a local bottom in the range of $2500 – $3000. Then, most technical analysts are confident that the downtrend is over.

Scenario B: Price can retest the horizontal support at $1700. In that case, there is a high probability of this critical support level breaking down, because the more attempts a support or resistance level gets, the weaker it becomes.

Key Support Levels: $1700 & $1500

Key Resistance Levels: $2200 & $2450

Moving Averages:

MA20: $2545

MA50: $2925

MA100: $2878

MA200: $3347

The 4-Hour Chart

ETH is forming a bullish structure on the 4-hour time frame, including higher highs and higher lows. At present, the main barrier is the static resistance at $2145.

ETH must break above this level and form a higher high in order to maintain the bullish structure. The intersection of this level with the thick Ichimoku can also create a serious challenge for bulls.

On-chain Analysis: Exchange Netflow (Total)

Definition: The difference between coins flowing in and out of exchanges (Inflow – Outflow = Netflow). A positive value indicates reserves are increasing.

Due to the sharp drop, many investors have transferred their coins into exchanges. Typically, this behavior is accompanied by substantial selling pressure in the market.

As long as the histogram bars do not turn red, speculators tend to be more cautious. For the market to start moving up, we should see market players withdraw their coins from the exchange, something that will cause a ‘supply shock.’

 

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Brazil’s Leading Financial Broker XP to Launch a Crypto Trading Platform

The Brazilian investment management company – XP Inc. – reportedly joined forces with Nasdaq to launch a cryptocurrency trading platform. Called XTAGE, it should go live by the end of June. Initially, it will enable investors to buy and sell bitcoin and ether.

XP Thinks About the Next Five, Ten Years

The latest organization to open up to the crypto industry is the largest broker in the country – XP Inc. According to reports, the company partnered with Nasdaq to launch a digital asset trading platform called XTAGE. It will be fully integrated into XP’s ecosystem and should be operational by the end of next month.

At first, the platform will allow users to trade the two leading cryptocurrencies by market capitalization – bitcoin and ether. CFO Bruno Constantino clarified that XP customers will have access directly from the firm’s application. Later on, it will be extended to external investors.

Talking about the recent declines, the executive argued that “where the market is [in terms of pricing] is irrelevant to the launch of the exchange:”

“The timing of the launch is linked to the development of a platform with security, scalability, and speed for the client.”

Commenting on the partnership was also Lucas Rabechini – Director of Financial Products. He asserted that XP does not care about the current condition of the cryptocurrency market. In his view, the niche has the potential to grow, and as such, the broker is focused on the next five ten years.

For his part, Roland Chai – Executive Vice President of Nasdaq – opined that the collaboration with XP could grant additional access to crypto services and create new opportunities for Brazilian investors:

“Nasdaq’s robust and flexible infrastructure technology, designed to meet market demands as well as current and future regulatory frameworks, will allow XP to reliably scale its platform and introduce new asset classes as it grows and evolves.”

Nubank Said ‘Yes’ to Crypto, Too

Earlier this week, Brazil’s largest digital bank – Nubank – collaborated with Paxos Trust to launch crypto services. CEO David Vélez described the industry as a “growing trend in Latin America,” believing it will have a “transformational impact on the region.”

The bank, headquartered in Sao Paulo, is among the leading fintech institutions in South America. It has engineering offices in Buenos Aires, Mexico City, and even Germany’s capital – Berlin. Nubank serves over 50 million clients, while its valuation exceeds $55 billion.

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Ethereum Whale Transactions Hit 4-Month High

Ethereum whales have registered a sharp uptick in activity in the past few days, making nearly 2,600 transactions worth over $1 million each yesterday alone. This is the highest number of such transaction activities in a day since January.

The company noted that this increase in activity came amid the market-wide retracement that sent shockwaves among the entire crypto space. Ethereum, for one, stood at $3,000 until May 5 before it suddenly plummeted by $300 in minutes. The situation only worsened in the following days, and ETH found itself fighting to stay above $2,000.

This psychological support line finally gave in yesterday and ether dumped to $1,700. This became its lowest price since last April. However, ETH reacted well to this drop and now trades around $2,100.

Ethereum Whales’ Recent Behavior

According to Santiment, an Ethereum investor is regarded as a whale after attaining $1 million or more.

“For many assets, these would be addresses with $100k or more. For Bitcoin and Ethereum, due to the incomparable market cap levels, whales are typically more defined as anywhere between $1M or more, to $10M or more (depending on current price levels).” – the firm explained last month.

On May 2, Santiment reported that deep-pocketed Ethereum investors have started to aggressively accumulate ETH after four months of inactivity. The market intelligence firm said that entities holding between 1,000 and 10,000 ETH have suddenly added a combined 142,000 ETH, worth about $407,415,040 at the time.

Fundamental Aspects

The Ethereum ecosystem is preparing for its largest event, dubbed The Merge, which will see the blockchain adopting a proof-of-stake consensus algorithm instead of the recently criticized proof-of-work.

This transition has been viewed as a highly bullish move, with a substantial number of institutional and prominent investors wanting to get on board.

According to Ethereum.org, the total number of ETH staked is over 12,500,000 units by almost 400,000 validators as of today. Additionally, the ecosystem continues with its burning program that has a significant impact on the market price. More than 2.3 million ETH have already been eradicated from existence.

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Crypto Price Analysis May-13: Ethereum, Ripple, Cardano, Solana, and Shiba Inu

This week, we take a closer look at Ethereum, Ripple, Cardano, Solana, and Shiba Inu.

img1_cryptopostcharts

Ethereum (ETH)

Ethereum had crashed this past week, with the largest selling volume taking place on Thursday when the price reached its lowest level in 2022 at $1,700 (on Bitstamp). Since then, the price has recovered above $2,000 and has found good support at $1,900. Overall, it was a very difficult week for ETH, which lost 22% in the past seven days.

Nevertheless, there are signs of optimism that the spike in volume yesterday may indicate a possible reversal in the downtrend, at least in the near term, because such high volume has not been seen since 2021. At the time of this writing, ETH is on the move up.

The next key resistance levels are found at $2,200, $2,350 and $2,500. The indicators also favor bulls now, with the MACD and RSI indicators both signaling that a potential reversal might be in play. Should this materialize in the next few days, then the cryptocurrency may see a good performance in the coming week, recovering some of the most recent losses.

ETHUSD_2022-05-13_16-30-21
Chart by TradingView

Ripple (XRP)

XRP took a nosedive yesterday to a level not seen since February 2021 at $0.336 (Binance). The selloff was sharp, and since then, XRP’s price has recovered to some extent, turning the $0.37 level into support. Overall, it lost 25% in the past seven days.

Any recovery will face resistance at $0.56, which used to act as a support in the past. Considering that the market may have bottomed yesterday during the selloff, XRP has a good chance to recover and attempt a relief rally in the next few days.

However, it is important to note that on most charts, the price has made a lower low which makes the overall macro trend bearish, despite any relief rally. For this reason, it is best to watch the key resistance level carefully as sellers may return.

XRPUSDT_2022-05-13_16-43-43
Chart by TradingView

Cardano (ADA)

Despite a significant crash, ADA has made a sustained recovery in the past 24h. Yesterday, its price fell to $0.40 (Binance), where it found support, and now it sits just under the key resistance at $0.59. Compared to the previous two cryptocurrencies, ADA performed the worst in the past seven days, losing 28% of its valuation.

The volatility in the past three days saw the price of ADA fall by 39% and recover by 51%. This goes to show that the market can be very unpredictable, and price swings are out of the ordinary at this time. The volume spiked yesterday but now seems to decrease, which should lower volatility as well.

The biggest challenge for ADA is to move above the resistance at $0.59. If successful, then its price can attempt to rally to the next key level found at $0.75.

ADAUSDT_2022-05-13_16-51-23
Chart by TradingView

Solana (SOL)

Since early April, Solana has crashed over 70%, with the most recent price action seeing it reach a potential local bottom at $37 (Binance). The last time Solana’s price was this low was in August 2021. With a price loss of 26% in the past seven days, Solana is the worst performer on our list.

The key support level is found at $44 and the resistance – at $57. While Solana is attempting to recover some of its most recent losses at the time of this post, buyers need to build up more momentum to break the aforementioned level. Should they be successful, the next target is $78.

SOLUSDT_2022-05-13_16-58-37
Chart by TradingView

Shiba Inu (SHIB)

Shiba Inu used to be one of the most popular cryptocurrencies during the bull market. Now, the price has fallen to levels not seen since October 2021. It found good support during this most recent crash at $0.000010, and SHIB is currently in a relief rally. Despite its ongoing recovery, SHIB still lost 30% of its valuation in the past seven days.

The most important resistance levels are at $0.000017 and $0.000020. To reach them, SHIB buyers have to reverse the momentum in their favor and sustain it in the coming week. Historically, SHIB has been a poor performer beyond a few days in a bear market, but so long the market remains in recovery, SHIB could perform well.

SHIBUSDT_2022-05-13_17-07-30
Chart by TradingView
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Ethereum Taps Highest Levels Against Bitcoin Since January Amid Market Downturn (ETH Price Analysis)

The crypto market is heavily influenced by events attributed to the Luna ecosystem. Investors are depositing their assets into exchanges with fear caused by the possible sell-off continuation.

Technical Analysis

By Grizzly

The Daily Chart

ETH stands on horizontal support (in green) on the daily timeframe last touched in January. This level intersects with the descending line (in orange), which may have persuaded some participants to buy at this point.

This technical structure has caused a price increase. ETH has recently lost significant levels, the first of which is $2,500 (in red). Until the price reclaims this level, the current upward movement can be technically considered a bounce.

On the other hand, the last price high on the daily timeframe is relatively far from the current price. ETH needs to confirm a possible uptrend through a closing above $3,000 – only then can the trend be considered reversed.

123
Source: TradingView

Key Support Levels: $2200 & $1700

Key Resistance Levels: $2500 & $3000

Moving Averages:

MA20: $2748

MA50: $3018

MA100: $2912

MA200: $3390

The 4-Hour Chart

2
Source: TradingView

On the 4-hour timeframe, the RSI indicator has entered the oversold zone – unprecedented since January. ETH can be expected to recover slightly in this area. But whether the price can move as strongly as in January is unclear because the macroeconomic conditions are very different from then.

The ETH/BTC Chart

Unlike most BTC pair charts, ETH/BTC chart is technically bullish and moves upward within an ascending channel. But the recent ascending leg that starts from the bottom of the channel is not as strong as the previous ones.

Weakness is observed in the upward movement, and the horizontal support at 0.07 BTC is likely to be retested. Therefore, as long as the price moves inside this channel and above the horizontal support at 0.064, one can have bullish insight.

3
Source: TradingView

On-chain Analysis

Supply On Exchange vs Supply Held By Non-Exchange Addresses

As mentioned in the technical analysis, the selling pressure in the market is high, and the participants have deposited their assets aggressively into the exchanges over the last 72 hours.

This behaviour is specified in the Supply On Exchange metric. This metric has recently spiked sharply, which usually indicates an increase in the selling pressure. On the other hand, the supply held by non-exchange addresses has decreased slightly. It remains to be seen whether this increase in supply on exchanges will cause the price to drop further.

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Source: CryptoQuant