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Ethereum: what do the bulls and the bears say?
Ethereum's price has been less volatile lately compared to 6 months ago. As the price becomes more stable, consumers are starting to think about investing in Ethereum again. Take a look at the questions we frequently get about Ethereum as an investment or a trading opportunity:
- Is Ethereum currently a buy or a sell?
- Should I sell or hold Ethereum today, if I purchased it 3 months ago?
- Is Ethereum a good buy/investment opportunity?
Here are the reasons to buy Ethereum cryptocurrency (a.k.a., the bull case for Ethereum):
1. It is one of the most promising cryptos with a market cap of $23 billion.
2. It is a decentralized platform that runs smart contracts, on which applications run without any chances of downtime, censorship, fraud or interference from third parties.
3. The price increase may occur because many ICOs, i.e., the Initial Coin Offerings intend to release their tokens on the Ethereum network.
4. The coin bears the potential for transforming the financial system in a similar way that Uber and Airbnb changed the transportation and hotel industries. The Casper and Sharding technologies demonstrate important milestones in the development of this cryptocurrency.
5. The traditional financial markets are losing the trust of investors which is prompting them to look out for cryptocurrencies that are more established such as Ethereum.
Here are the reasons to sell Ethereum (a.k.a., the bear case for Ethereum):
1. Forking Ethereum is quite easy since it is an open source code with no entry barriers. The ability to fork the protocol increases the utility for users but reduces the "economic rent" for token holders. Thus, in the long run, the price of ETH is could decline, as new forks in the road are created. (Note that Ethereum operates in the state of perfect competition).
2. For Ethereum, scalability is an issue that might take a longer time to solve; currently, there are no methods to run applications that have billions of users on a single chain. This is one of the main reasons why some clients have left the platform.
3. If the scalability problem is resolved, Ethereum users will benefit, in contrast to traders. ETH coins will trade at a high volume, leveraging the scale of the platform, which will ultimately lower the profit margin (spread) for traders.
4. Ethereum is comparatively more centralized than Bitcoin. About 7% of all Bitcoin Core Software files were written by a single developer, whereas in the case of Ethereum 20% is written by a single coder. What would happen if this person decided to leave the project? This seems to be quite a trivial question but is worth giving a thought.
Bitcoin (BTC.X) price: still bearish, despite some positive developments
Bitcoin (BTC.X) is trading at $6,450, up 1% from yesterday. Its price extended downside correction and tested the key support at $6,400 against the US Dollar. What is Bitcoin's price forecast?
ShapeShift CEO Erik Voorhees said that the bear market for Bitcoin is not over yet. ThinkMarkets chief market analyst Naeem Aslam thinks similarly and believes that speculators have unnecessarily intensified the downtrend by overselling Bitcoin in the global exchange market.
However, there are a number of positive developments related to Bitcoin. The largest bitcoin mining pool in the world BTC.com is intending to expand its operations: it released a client designed to mine the Ethereum blockchain. Initially, the pool will support Ethereum and Etereum Classic. In order to enhance profitability, the users will get an option to shift between the two Ethash based cryptocurrencies.
Around 16% of Bitcoin's computing power is accounted for by BTC.com. BTC.com also makes up 14% of the Bitcoin Cash network. The mining operations are expected to grow by 12% in the upcoming 12 months.
Here are the major technical indicators for Bitcoin:
- MACD is placed is in the bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) is below 50, indicating the coin is oversold. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at $6,350;
- A new major resistance level is forming at $6,650.
Over the last 30 days, BTC.X lost -12.77%.
Is Cardano catching up with Ethereum?
Cardano (ADA.X) is trading at $0.08, down 12% from yesterday. What is Cardano's price prediction? What news should Cardano investors and traders be aware of?
Cardano has become a prominent coin in the crypto-sphere and is the largest threat to Ethereum. Its platform use case bears a lot of potential, which became particularly apparent after the introduction of the Marlowe application.
In order to execute financial contracts, the Marlowe application targets the financial sector, which is akin to Peyton Jones. Currently, Ethereum dominates in escrow services but Marlowe provides a better value proposition compared to it.
There is a tough competition between Ethereum and Cardano, but both of them are trading in the red. Both cryptocurrencies are recording a double-digit loss compared to their respective prices from 24 hours ago.
Here are the major technical indicators for Cardano:
- MACD has moved back in the bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) for ADA/USD is hovering around 30. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at $0.75;
- A new major resistance level is forming at $0.88.
Ethereum price: an indication of a long-term bearish trend reversal?
Ethereum (ETH.X) is trading at $293, down 1% from yesterday. There has been an increase in demand for Ethereum, which has been trading above the $280 resistance level against the US Dollar.
What is Ethereum's price forecast? What's the probability of a long-term price reversal, and what developments should investors be aware of?
The spike in Ethereum's price occurred despite Baidu's anti-cryptocurrency measures. Baidu followed Tencent and Alibaba suit by censoring online speech related to cryptocurrencies and restricting access to crypto-focused forums and discussion boards. The company cited the laws, regulations, and policies as the main reasons for this censorship.
Many popular cryptocurrency chatrooms, including the famous “Digital Currency Bar” and “Virtual Currency Bar" were blocked by Baidu.
Meanwhile, Coinbase is trying to evangelize cryptocurrency benefits and driving institutional crypto adoption across the globe. It is contributing towards an open financial system that can ensure equal opportunities, efficiencies, and economic freedom through cryptocurrency and blockchain. Significant strides taken by the crypto exchange platform have led to high user satisfaction. The introduction of Faster Payments which is reducing FX costs and increasing the speed of transaction processing is hugely popular among its users.
What is the sentiment towards Ethereum? Here are the major technical indicators:
- MACD is placed in the bullish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) is around 50. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at $280;
- A new major resistance level is forming at $302.
11 best cryptocurrencies for August 2018
After a significant dip in the second quarter of 2018, cryptocurrencies are becoming popular again among retail investors, appearing in the mainstream media headlines every day. There are a few cryptocurrencies that have grabbed investors' attention. What are the best cryptocurrencies to invest in in August this year?
Before we share with you our top 11 list, here is our little hack: use the cryptocurrency investment idea tool to stay up-to-date on the best investment opportunities in the altcoin space.
Bitcoin is by far the most popular cryptocurrency today, garnering a plenty of investors' attention. We think Bitcoin may be a good opportunity to invest in now because:
- It is the most established cryptocurrency.
- Stock market volatility and political uncertainty are good for Bitcoin. In general, political unrest is not good for the stock market, because its value is tied to established companies that depend on government services. But given the political climate across the world, and decreasing faith in government institutions, Bitcoin is becoming increasingly more popular.
- It's easy to invest in it: investing in Bitcoin is as simple as buying a stock on an online exchange. You can use also a zero-cost brokerage such as Robinhood to do that.
Stellar is also based on the blockchain technology. It connects banks, payments systems, and people with a goal to move money quickly, reliably, and at little or no cost. Here are the main reasons why one should consider investing in the cryptocurrency now:
- Stellar offers low-cost transactions and accounts. 1 USD will cover about 400,000 transactions, and there are various licensed exchanges where Stellar Lumens can be purchased.
- There is a good market opportunity for the cryptocurrency as Stellar is the first distributed ledger protocol which received Sharia compliance certification in the money transfer and asset tokenization space.
- Security is one of the main focus areas for Stellar, and the company solved security-related challenges in a very creative and effective way. Stellar's nominal base fee, paid by transaction initiators, deters malicious attacks that can flood the network. Whenever there is a suspicious account submitting transactions, this base fee increases.
Stellar (XLM.X) is trading at $0.27, down by 0.75% from yesterday.
IOTA has a market capitalization of $2.5 billion USD today. It focuses on the emerging machine-to-machine (m2m) economy of the Internet-of-Things (IoT) and other applications where a scalable decentralized system may be warranted.
Unlike other cryptocurrencies that are based on the blockchain technology, IOTA makes use of its unique infrastructure known as Tangle. We think IOTA is a good investment opportunity now, because of the following reasons:
- It has good scalability, no-fee transactions, and no blocks. It targets the up-and-coming market opportunity called the Internet of Things (IoT), which could reach more than 1 billion transactions by 2020, thus necessitating a secure, cheap and scalable micro-billing mechanism for everyone.
- Its partnerships with the mainstream companies such as BOSCH, Volkswagen, and Porsche seem to be very promising.
- It can be easily bought in a hasslefree manner using many exchanges (e.g., Coinhako). With the growth in the ecosystem every day, buying or selling IOTA will become even easier.
IOTA (IOT.X) is trading at $0.91, down -2.8% from yesterday.
EOS is one of the most used blockchains in the world today. It has a market capitalization of $6.3 billion USD.
EOS is a blockchain project that enables horizontal scaling of decentralized applications, allowing developers to efficiently create high performance distributed applications. It is a good investment opportunity because:
- It is simple to use, and accounts are easily recoverable in case of security breaches. This is very helpful for the mainstream public that doesn't have much experience with private keys and account security issues.
- The EOS network is pretty efficient with handling volume bottlenecks on high transaction days.
- EOS has zero transaction fees. When a smart contract is executed, EOS requires the user to stake tokens which are returned back to him or her after the execution.
EOS (EOS.X) is trading at $7.04, down by 3.68% from yesterday.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. It is one of the most promising coins in the crypto world and one of the best long-term investment choices for crypto investors because of the following reasons:
- Since many Initial Coin Offerings (ICOs) intend to release their tokens on the Ethereum network, its price is expected to appreciate over time.
- It has the potential to transform the financial system just like Uber and Airbnb did in their own industries. The Casper and Sharding technologies depict significant milestones in its development.
- A decreasing trust in the traditional financial markets is prompting traditional investors to look into the most established cryptocurrencies such as Ethereum.
Ethereum (ETH.X) is trading at $418.08, down by 1.82% from yesterday.
NEO is the first Chinese cryptocurrency to be globally accepted. Founded in 2014, its mission is to reinvent the way commerce is done.
NEO entered the top 15 coins by market cap and its capitalization is north of $1.7 billion today. We consider it to be a good investment option because of the following reasons:
- NEO is not just a cryptocurrency, but also a project that helps in the creation of digital assets, smart contracts, and other applications on its blockchains.
- In the NEO platform, a straightforward transfer of shares, equity, and assets is possible because users are able to issue and trade assets. In order to prove an asset's ownership, tokens are distributed.
- The platform is powerful enough to process 10,000 transactions per second, so there is virtually no transaction latency. This capability attracts a huge number of partners from all over the world, besides China.
NEO (NEO.X) is trading at $29.19, down by 2.89% from yesterday.
NEM is a blockchain built for enterprise-grade performance. Here are the reasons to invest in NEM now:
- Compared to Bitcoin, NEM has more real-time case uses.
- It is the best option for portfolio expansion. No programming knowledge is needed to use the platform as it is quite user-friendly.
- With cryptographic signatures, NEM is capable of acting as an authentication and notary-type service. It is targeting the retail industry with its blockchain technology. The customers' loyalty points can be converted into money which would reduce the shortcomings such as mistakes in the loyalty points program.
NEM (XEM.X) is trading at $0.16, down by 2.08% from yesterday.
It is one of the popular cryptocurrencies among the crypto traders. XRP offers banks and payment providers a reliable, on-demand option to source liquidity for cross-border payments. XRP consistently handles 1,500 transactions per second and can scale to handle the same throughput as Visa.
We consider Ripple to be a good investment option because of the following reasons:
- It is used in the real world today to enable high-speed and low-cost money transfers worldwide.
- Ripple is going to build more financial market partnerships in the upcoming period, which means its applicability will spread over time.
- xRapid, used for payment providers and other financial institutions that want to minimize liquidity costs, is gradually being adopted in the market. It can complete international settlements in a short span using XRP as a bridge currency.
Ripple (XRP.X) is trading at $0.44, down by 2.71% from yesterday.
It was created by Charlie Lee with the intent to make a lighter version of Bitcoin. Litecoin is a peer-to-peer currency that enables instant, close-to-zero cost payments to anyone. Here are the reasons why it may be a good investment option now:
- A Bitcoin transaction needs 10 minutes to execute, whereas Litecoin takes around 2.5 minutes. The transaction cost for Litecoin is smaller compared to Bitcoin: $0.23 vs. $2.83.
- This digital currency can be bought easily. Because of its popularity, it is traded on Coinbase (the top digital currency wallet and exchange).
- Litecoin was the first crypto asset to be traded on eToro. It's potentially on the upside because of its robust usage, evidenced by the number of active addresses per day.
Litecoin (LTC.X) is trading at $77.47, down by 0.78% from yesterday.
10. Ethereum Classic
Ethereum Classic is the continuation of the original Ethereum blockchain, prior to the July 2016 DAO hack. Here are the reasons why it may be a good investment option now:
- Currently, Ethereum Classic processes 48,000 transactions per day and is soon expected to reach the 100,000 mark, upon being licensed on Coinbase.
- The Ethereum Classic Development Team (ETCDEV) has big plans around IoT, since Ethereum Classic has the most secure blockchain. There is a pretty decent probability that the company will capture a share of the IoT market. ETC's scalability will be enhanced after the inclusion of side chains.
- Its partnership with a South Korean exchange Zeniex will help ETC enter the Asian market per Memorandum of Understanding (MoU) signed between the two companies.
Ethereum Classic (ETC.X) is trading at $15.21, down by 5.26% from yesterday.
11. Binance Coin
Binance is one of the largest and most powerful cryptocurrency exchanges with a market cap of about $1.5 billion USD. Reasons for investing in Binance Coin include:
- Binance processes about 1.5 million orders per second and over $1 Billion per day. The company's native coin BNB has been the best performing coin since July 2017 (its inception time).
- The interface is user-friendly, so investors can enjoy a seamless trading experience.
- The Binance exchange is one of the most secure exchanges in the world, so the chances of a hack or malicious cyber attack are significantly reduced. Also, its stability provides assurance to its users.
Binance Coin (BNB.X) is trading at $13.61, up 1.11% from yesterday.
Over the last 30 days, BNB.X lost 3.43%, which is 24.08 percentage points lower than the 30-day return of Bitcoin (BTC.X).Do you want a daily updated view of cryptocurrency news, price analyses and speculations? Check out Finstead Bites, to get your scoop on cryptocurrencies and make your next bet.
Ethereum's price speculation: why are the bears prevailing?
Ethereum (ETH.X) is trading at $406.54, down by 1.77% from yesterday. It broke the $417 and $409 support levels against the US Dollar. On the hourly ETH chart, we notice a bearish trend line: there are chances of Ethereum's price falling further below $400 in the upcoming period.
What do investors need to know about Ethereum's recent developments and price? Why are the bears prevailing?
Ethereum's volatility has reduced since the beginning of the year primarily because of some gradual developments such as its interoperability with Wanchain. Its price is subject to market speculations, but as "real-world" use cases expand, its volatility is likely to decline further. The development team's current priorities are sharding and migration from a proof-of-work protocol to proof-of-stake--and the two have been combined into a single project.
Henri Pihkalak, the CEO and Founder of Streamr (a data platform running on smart contracts) said that the Ethereum network's stability makes it difficult for other smart contracting blockchain challengers to take on Ethereum. This is true despite challengers' promises to build some critical features.
Hedge funds are taking short positions on ETH because of the network's susceptibility to threats, as well as slowly progressing developments. But the ETH network has the potential to impact a critical mass before its rivals since it has 17,000 nodes globally along with a community of 250,000 members.
Here are the major technical indicators:
- MACD is in the bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) is in the oversold territory with a lot of bearish signs. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at $401;
- A new major resistance level is forming at $424.
Ethereum Classic: what are the chances of a massive breakout?
Ethereum Classic (ETC.X) is trading at $17.14, up 4% from yesterday. There is a bullish trend line forming on the ETC/USD hourly chart.
What is Ethereum Classic's price forecast, i.e., prediction? What are the reasons attributing to the chances of a massive breakout?
Ethereum Classic is Ethereum's fork. The announcement regarding the addition of Ethereum Classic to the Coinbase platform drew investors' attention. ETC has a surplus of $700,000 per Ethereum Classic Cooperative ’s mid-year review.
Cryptocurrency investors like Ethereum Classic's relative price stability and limited downside. In contrast to Ethereum, transactions on the ETC blockchain remain unchanged. This aspect makes the digital asset attractive to investors, and its rising demand is one of the reasons for ETC will be added to the Coinbase platform.
Ethereum Classic touts decentralization and transparency as its strong points--and SEC made a verdict the altcoin is not a security. This leaves no room for backroom deals, making it similar to the Bitcoin platform. Relative to Ethereum, Ethereum Classic is gaining in popularity.
The Coinbase exchange is completely compliant with the US regulations and has gained American investors' trust. If a new coin is listed on Coinbase during a bull market, there are pretty good chances its price will over-exceed the rest of the market. Ethereum Cassic will be added to the Grayscale Fund of Coinbase which will cause a positive cash inflow for the brokerage.
Here are the major technical indicators:
- MACD is moving into the bullish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) is moving higher towards 50 (not oversold any longer). RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at $16.75;
- A new major resistance level is forming at $17.49.
Ethereum price prediction: the near-term prospect for the cryptocurrency
Ethereum (ETH.X) is trading at $462, up 2% from yesterday. A major downside correction occurred below $500 against the US Dollar. In the last two days, Ethereum trimmed most of its gains against the US Dollar and Bitcoin.
What is Ethereum's price prediction? What are the reasons attributing to the price volatility?
The news about institutional interest in the cryptocurrency space has caused the Ethereum price to rise. BlackRock CEO stated the company is looking into the blockchain, even though there is no notable investor demand. Still, this is an encouragement for retail investors and cryptocurrency enthusiasts because BlackRock is the world’s largest asset manager.
Traders are optimistic about the regulatory developments in the US and abroad relative to cryptocurrency space.
In addition, there are some interesting developments about using Ethereum in the gaming space. Gods Unchained, the first competitive e-sports project on Ethereum with backing from Coinbase, is now live. Gods Unchained co-founder Robbie Ferguson believes the decision to launch the game on the Ethereum main chain was the right step for his parent company Fuel Games.
"With over $50 billion turned over in in-game assets on marketplaces every year, current game publishers are essentially acting as central banks with absolutely no oversight or regulation – this needs to change," said Ferguson.
What do we forecast for Ethereum's price in the near term? Here are our thoughts based on the major technical indicators:
- MACD is in the bullish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) is currently above the 50 level (trending towards overbought). RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at $471.
- A new major resistance level is forming at $455.
Bitcoin surge: multiple factors contributing to the rally?
Bitcoin (BTC.X) is trading at $7,360.49, up 10.38% from yesterday. Bitcoin price surged higher and broke a crucial resistance near $7,150 against the US Dollar. There is a new key bullish trend line forming with support at $7,500.
What's bitcoin price prediction, i.e., forecast? What's driving the price?
Cryptocurrencies are largely continuing to build on a major surge that kicked off yesterday, according to Finstead, with virtually all of the top 10 cryptocurrencies in the green.
An unexpected corrective rally occurred today, pushing the price of major digital assets to spike by large margins. Bitcoin has been one of the best outperformers among the major cryptocurrencies, rising by more than 10 percent in a short period of time.
Positive events driving this behavior are 1. the government of South Korea regulating its cryptocurrency market, which could fuel the next rally, 2. increasing optimism in terms of regulation, adoption, and general consumer demand, 3. bullish year-end projections by ‘famous’ analysts, 4. large companies such as BlackRock setting up working groups to look into cryptocurrencies and blockchain.
The tide seems to be shifting. Larry Fink, Blackrock CEO, had previously railed against bitcoin, calling it the “index of money laundering.” Now, the largest asset manager in the world, BlackRock, is looking into cryptocurrencies and blockchain, the technology that underpins them.
How long will this rally last? No one can really tell.
Here are the major technical indicators:
MACD is trending down, slowly entering the bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
RSI (relative strength indicator) is correcting lower from the overbought levels. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
A new major support level is forming at $7,500;
A new major resistance level is forming at $7,150.
Over the last 30 days, BTC.X gained 12.52%.