Ethereum faces a critical test amid SEC’s pending approval

Posted on May 13, 2024 by Olumide Adesina

Ethereum’s price fell below the $3K mark over the weekend as sentiments around the super altcoin became cloudier. Large buyers or sellers, however, are typically the center of attention because of their significant impact on price fluctuations. On May 10, Ark Invest and 21 Shares revised their proposal for an Ethereum ETF that included staking ambitions.

A provision stating that the sponsor, 21 Shares, planned to stake a portion of the fund’s assets through third-party providers was added to the businesses’ prior filing on February 7.

21 Shares intended to regard profits as income from the fund and anticipated receiving ETH as a staking payment. The document recognized the potential hazards associated with stakings, such as losses due to penalties being slashed and cash becoming inaccessible.

The relevant part is removed in the most recent file. It continues to make more general remarks about possible losses to other validators because of staking and how it affects the price of ETH.

Within the following two weeks, the SEC is anticipated to either approve or reject some spot Ethereum applications. The regulator will decide on VanEck’s spot Ethereum application on May 23 and then on May 24 on behalf of Ark and 21Shares. But the government is supposed to make decisions on all comparable, rival applications in the same periodicity.

However, statistics for Ethereum revealed a positive rating, indicating bullish confidence in the direction of the price trend. If this indicator stays in the same place over the next few days, ETH could rally towards the $3,200 mark.

If the current situation is not maintained or improved upon, the altcoin’s price may drop below $2,800. Investor perception of ETH has shifted because of the coin’s lackluster price performance.

Ethereum may aim to move up to $3,500. This time, we looked at the dormant circulation in addition to this statistic. As per Santiment’s on-chain data, the 90-day dormant circulation had decreased to 9246. Coins that have not moved in a long time will likely switch wallets if the metric rises. This occasionally indicates that veterans are selling.

Ripple claims the US is after USDT

Posted on May 13, 2024 by Olumide Adesina

The US government is “going after” stablecoin issuer Tether, according to Ripple CEO Brad Garlinghouse, and this might have an erratic effect on the cryptocurrency markets.
In an interview with the World Class podcast on May 10, Garlinghouse predicted that there will “100%” be another crypto-related black swan event, similar to the collapse of FTX and the following discovery of fraud committed by its management.

Without providing further details, he declared, “It is obvious to me that the U.S. government is targeting Tether.” He did not go so far as to label any potential U.S. action against Tether as the next black swan. Rather, he considered it an “interesting one to watch.”
The CEO of Ripple stated, “I see Tether as an important part of the ecosystem.” He continued by saying he had no idea how to foresee the effects that prospective regulatory action against Tether by the US would have on the cryptocurrency industry.
Later this year, Ripple will introduce a stablecoin denominated in US dollars. According to chief technical officer David Schwartz, the company will use dollar deposits, short-term government Treasurys, and “other cash equivalents” to support the token.
Tether Holdings Limited is the parent business of a network of globally formed companies with similar names, that are in charge of different aspects of the stablecoin Tether’s issuance and administration.
The Department of Justice was encouraged to “carefully evaluate the extent to which Binance and Tether are providing material support and resources to support terrorism” in a letter submitted by U.S. Senator Cynthia Lummis and Representative French Hill in October of last year.
In response to the letter, Tether stated that it was “fully committed” to cooperating with authorities worldwide and it had “always assisted law enforcement” when requested.
In recent years, the corporation has released quarterly third-party audits on its USDT-backed treasury, in response to criticism for its lack of openness regarding its backing reserves.
The Commodity Futures Trading Commission asserted that Tether “misrepresented to customers” its reserve holdings and discovered that it had enough fiat reserves to support USDT for “only 27.6% of the days” between June 1, 2016, and February 25, 2019. As a result, the regulator fined the company $41 million in October 2021.

Forex Signals Brief May 10: UK GDP Closing A Loaded Week for GBP

Posted on May 10, 2024May 10, 2024 by Skerdian Meta

Yesterday started with the release of Japan’s Average Cash Earnings for March revealed some disappointing figures. The actual earnings of 0.6% fell short of the predicted 1.5%, indicating weaker-than-expected economic performance in terms of household earnings. Moreover, the downward revision of February’s earnings from 1.8% to 1.4% further highlights the challenges facing Japan’s economy.

The UK Q1 GDP is expected at 0.4% after -0.3% in Q4 of 2023

Continue reading “Forex Signals Brief May 10: UK GDP Closing A Loaded Week for GBP” →

XRP Stuck In Rut? SEC Now Targets Ripple’s Stablecoin

Posted on May 10, 2024 by Dalmas Ngetich

XRP is flat at spot rates and continues to trend inside a tight range, per the events in the daily chart. Despite the general confidence across the board, only prices will begin moving if there is a convincing spike in participation. This will be the foundation of more gains, possibly extending XRP towards local resistances at $0.55 and $0.60, respectively.

The inactivity is evident from XRP’s price action. Currently, the coin is flat on the last day and trading week. Looking at the daily chart, yesterday’s bar closed as a doji, pointing to general indecision. Even so, buyers still have a chance since prices are above $0.50. The average trading volume is at over $970 million in the past trading day.

The following XRP and Ripple news might influence price action:

Coinglass data now reveals that the recent drop in XRP prices saw over $1.27 million of leveraged longs liquidation. The anomaly could explain the recent bounce since it meant there was spot demand for XRP to close these longs.
It is now emerging that the United States SEC is also targeting Ripple’s plans to issue a stablecoin. In their remedies reply brief, the regulator said the stablecoin is an unregistered crypto asset. They added that this is enough reason to prove that Ripple will continue to engage in unregulated activities if the court doesn’t bar them from selling XRP.

XRP Price Analysis

[[XRP/USD]] is technically bearish, looking at price action in the daily chart.

This assessment follows the drop in the first half of the week and the general inactivity on May 9.

Even though prices are still trading above $0.50, there must be more conviction from bulls. Accordingly, traders should wait for a clean break above $0.55 for hints of trend continuation.

Until then, traders can adopt a wait-and-see approach, but they should be aware that XRP could face significant downward pressure if prices drop below the $0.46 and $0.50 support zone.

Ethereum Holds Above $3,000: Why Is Bitcoin So Important For ETH?

Posted on May 10, 2024 by Dalmas Ngetich

Ethereum flipped bullish on May 9, much to the relief of bulls. At spot levels, ETH is trading above $3,000. However, the coin is confined within a narrow trading range. Ideally, yesterday’s gains should have been within a wide bar pumped by expanding trading volume. For now, volumes are low, and volatility is suppressed. This would change if bulls extended yesterday’s gains, pushing towards $3,300.

At press time, Ethereum is flat on the last day and week. With prices teetering around the psychological round number at $3,000, this was largely expected. A bounce will be a reprieve for buyers, helping revive stalling liquidity and volatility. To illustrate, trading volume on the last day remains at over $11 billion, reflecting the general inactivity across the board.

Traders should closely monitor the following Ethereum news:

Joseph Lubin, the co-founder of Ethereum, is convinced the United States SEC doesn’t want Ethereum to transform the status quo in banking. The executive said instead of engaging the industry in meaningful discourse, the SEC is involved in enforcement actions, stifling innovation in the sector. Their action, he continued, is to paralyze the industry and force innovators offshore.
One analyst says Ethereum’s performance in the short to medium term is largely tied to the performance of the world’s most valuable coin, Bitcoin. If BTC soars, it will likely lift ETH and continue outperforming Ethereum.

Ethereum Price Analysis

[[ETH/USD]] is flat when writing.

As it is, ETH is heavily shaped by fundamental factors, especially the regulator’s position in the United States.

From a technical level, ETH is within a range and in a bear breakout pattern as long as prices are kept below $3,300.

$2,800 is an interesting support level. If broken, Ethereum could collapse to new Q2 2024 lows.

A relief for bulls will be when they convincingly close $3,300 on rising volume. In that case, the selling pressure of mid-April would have been contained. Once this prints out, bulls will target $3,700.

Bitcoin Breaks $63,000, Mining Difficulty Falls By 5%–The Sharpest In 16 Months

Posted on May 10, 2024 by Dalmas Ngetich

Bitcoin is relatively firm at spot rates, edging higher after the scare of the first half of the week. While prices rose, breaking $63,000 yesterday, bulls must sustain the current momentum, lifting the coin ideally towards this week’s highs and even $66,000. It is imperative Bitcoin close above this level for the confirmation of last week’s bulls. This upswing will likely ignite demand, pushing the coin towards the $70,000 level.

With Bitcoin turning green yesterday, optimism is high. At press time, BTC is stable on the last day but up 7% in the previous trading week. Because of prices rejecting sellers, the average trading volume on the previous day is expanding. When writing, it stands at over $26 billion.

The following Bitcoin news events are worth watching:

For the first time since the April 20 Halving, the Bitcoin network adjusted its mining difficulty from the all-time high of 88.10 trillion. By dropping difficulty by 5.62% to 83.15 trillion, the reduction was the largest since December 2022, when prices plunged to as low as $15,500 following the collapse of FTX. This adjustment could hint that miners are feeling the straight. Even so, the hash rate remains at near record highs.
Donald Trump, the former United States president, now says he’ll accept crypto as part of his campaign donations. Trump also told his supporters that Joe Biden “doesn’t even know” what crypto is.

Bitcoin Price Analysis

[[BTC/USD]] is firm, rejecting selling pressure on May 9.

Even though the selling momentum continues, that price is firm is a net positive for buyers.

So far, BTC has support from around the $62,000 level. It coincides with the 62.8% Fibonacci retracement level of the May 2024 range.

For the uptrend to continue, mirroring gains of May 3, Bitcoin prices must edge higher today, even breaking $66,000.

Any drop below $60,000 will slow down bulls, while an unexpected crash below $56,000 will firmly put sellers in control.

Forex Signals Brief May 9: Will the BOE Signal A June Cut?

Posted on May 9, 2024May 9, 2024 by Skerdian Meta

Yesterday was a relatively quiet day in terms of economic data once again, with the focus mainly on the final wholesale inventory data for March. The dip of -0.4% mirrored the earlier report, indicating a reversal from a previous gain of 0.4%. In the Forex market, the USD showed strength against other major currencies, while the AUD edged out the JPY as the weakest among them.

Continue reading “Forex Signals Brief May 9: Will the BOE Signal A June Cut?” →

XRP Fails To Break $0.55, Will Ripple Conquer This $3 Trillion Market?

Posted on May 9, 2024 by Dalmas Ngetich

XRP is struggling for momentum as bulls appear to exit. Looking at the daily chart, the intense liquidation of May 6—judging from the long upper wick—spilled over to May 7. Since then, sellers have been in control. Yesterday was uneventful, and bulls didn’t even appear to be present. Still, there is a chance of buyers pushing back, soaking every attempt for lower lows, at least in the short term. This preview holds as long as $0.50 is supported.

At press time, XRP is firm on the last trading day and week. Participation will likely remain low without a convincing breakout above the local resistance level or a drop below support. Thus far, the average trading volume remains at around $1 billion.

The following XRP and Ripple news are worth keeping an eye on:

From court filings, the United States SEC lawyers are pushing back a proposal by Ripple to pay fewer fines. They maintain that the blockchain firm should pay their original claim of $2 billion for selling XRP during their ICO without registration. Failure to do this, the regulator added, would encourage other issuers to violate the country’s securities laws.
In a post, Ripple said the stablecoin market could expand and cross the $3 trillion level by 2028. The firm has plans to issue its stablecoin pegged to the USD. They will take on other established platforms like USDC and USDT on launch.

XRP Price Analysis

[[XRP/USD]] is auctioning lower at press time and struggling to maintain the uptrend.

As it is, XRP has resistance at $0.55, and bulls must push prices above this hurdle, canceling out sellers of April 13 in the process. Doing this will also confirm the buying pressure from April 20 to 22. Subsequently, it may set the foundation for a retest of $0.74 and March highs.

On the flip side, sustained losses from spot levels and below $0.50 will pour cold water on XRP, ever reclaiming $0.60. In that case, the coin could crash to as low as $0.40, retesting April lows.

Ethereum Drops 30% From March Highs, ETH Losses $200 In 2 Days

Posted on May 9, 2024 by Dalmas Ngetich

Ethereum is fast dropping, as shown in the daily chart. The coin has shaved over $200 in less than three trading days, which is discouraging and could further slow down the upside momentum. The recent sell-off is mostly driven by fundamental factors, mostly because of dashed hopes and the series of events surrounding spot Ethereum ETFs. Nonetheless, technical candlestick arrangements support buyers from a top-down preview.

Presently, Ethereum prices remain inside a narrow range, moving lower but within a consolidation. Since the caps are clear, ETH is stable on the previous day but up 2% in the last week. At the same time, participation is muted. To quantify, the average trading volume on the previous day is at $11 billion—way lower than March averages. This sentiment is affected by sustained bear pressure, forcing traders to exit and wait from the sidelines.

The following Ethereum news is worth monitoring:

Grayscale has withdrawn its spot Ethereum ETF application with the United States SEC. The decision is when the regulator was to make a ruling on May 30. Their filing was submitted in September 2023. If approved, the product would have traded at the NYSE.
In a recent post, the co-founder of Ethereum introduced EIP-7702, an enhanced improvement of another proposal, EIP-3074. The latter was being considered for inclusion in the Pectra Upgrade. This replacement, Vitalik said, would, among other things, enhance the user experience by allowing for better ways of abstracting gas fees and batching transactions.

Ethereum Price Analysis

[[ETH/USD]] is caving under pressure even with the network improving.

As of May 9, ETH is down roughly 30% from March 2023 highs.

With prices trickling below $3,000, sellers could look for opportunities to ride the bear trend. Technically, sellers remain in control and within a bear breakout formation set in motion on April 12 and 13.

Under the current setup, every high below $3,300 offers sellers entries to target $2,800. Any breach of this level will see ETH crash to $2,600 and $2,200.

The forecast will be nullified if ETH bulls break above $3,300.

Bitcoin Dips From $66,000 But Defiant CEO Projects A 300% Surge

Posted on May 9, 2024 by Dalmas Ngetich

Bitcoin is flat and down, and price action is boring. While losses were contained on May 8, sellers seem to have an edge, looking at the resistance for higher highs yesterday. The bar ended as a doji, slightly in favor of bulls. Even so, there must be a wide-ranging bar pushing prices above the local resistance for traders to begin considering going long. If yesterday’s sellers press on, BTC might slip lower, cracking below $60,000—a psychological level.

At press time, Bitcoin is steady on the last day and up 7% in the previous trading week. Of note, trading volume is also decent, at over $24 billion. Expectedly, the near-flat price action has contributed to this weak participation. Unless there is a dump below $60,000 or an expansion above $66,000, trading volume will remain muted.

Bitcoin Daily Chart for May 9

The following Bitcoin news will influence price action in the days ahead:

Taking to X, the founder of CryptoQuant predicts BTC to more than 3X in the coming years. In a post, the executive said Bitcoin will soar to as high as $260,000. The only problem is that it will take longer than anticipated, influenced mainly by the hash rate.
MicroStrategy, which is still going strong with its strategy of stacking BTC, is now among the largest holders of the coin. With more coins than the United States and China, their holding of 214,400 BTC translates to over 1% of the circulating supply.

Bitcoin Price Analysis

[[BTC/USD]] is flat at press time, steady on the last day, and up 7% over the previous week.

Even though the uptrend remains from a top-down preview, sellers are unyielding.

As we advance, Bitcoin bulls must unwind the losses of the past two days and close above $66,000 if the uptrend is to continue.

Conversely, should sellers take over, confirming losses of mid-April, BTC will likely plunge to $60,000 and retest $56,500.

Given the candlestick arrangement in the daily chart, traders might find entries to dump on every attempt higher but below the immediate liquidation line at $66,000.