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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%.
EOS and Ethereum (ETH): where are they headed?
Two cryptocurrencies that are increasingly being compared to one another are EOS and Ethereum. Ethereum has the history and longevity and has been widely viewed as one of the most promising cryptocurrency investments. But recently, EOS has been gaining momentum on Ethereum.
Here is what happened. Even though the Chinese Government totally banned all cryptocurrency activities within its jurisdictions, it has recently issued a ranking of blockchain platforms through the China Electronic Information Industry Development (CCID), which shows that EOS has outclassed Ethereum as the best blockchain platform available around the globe.
CCID evaluated three dimensions to come up with rankings for all cryptocurrencies: technology, applicability, and innovation. EOS scored better on all three dimensions than Ethereum. The irony is, the last time CCID ranked cryptos, Ethereum scored significantly above EOS.
This new ranking is somewhat controversial for EOS because of a recent couple of incidents. A few days before the MainNet went live, a serious security bug was discovered on the EOS platform. Also, there was a delay in attaining the 15% quota for staking tokens to allow for voting on the platform, along with a bug that brought the platform to a halt with transactions being frozen globally on the platform.
You can compare any two cryptocurrencies on Finstead.com (see example below for EOS.X vs. ETH.X).
Depressed volatility driving bitcoin (BTC) price down?
Bitcoin (BTC.X) is trading at $6,407.53, down -4.79% from yesterday, wiping away the gains from the most recent steady recovery. What's driving the bitcoin price down and what's the BTC price forecast?
Looking at the technical analysis for the cryptocurrency, we notice some bearish signals for bitcoin:
- Bitcoin price failed to hold gains and broke a major support at $6,700 against the dollar.
- MACD is trending down, 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 now in the oversold region. 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 support level is forming is $6,300.
What do the experts say? Bill Baruch, Blue Line Futures President, told CNBC bitcoin's "bottoming process can begin" following signs that volatility is depressed. Bitcoin's 30-day volatility is now at 61 percent, and slightly up from its low of 50 percent earlier this month. This volatility is significantly below the annualized volatility seen last year, north of 150 percent.
After bitcoin's volatility has become quite depressed and the cryptocurrency has lost as much as 70 percent from its December peak, it's time for it to find a new bottom.
It's no secret that the bitcoin price is going to remain unpredictable. There are massive spikes and declines, and nothing is preventing $5,000 from being the bottom. Bitcoin challenges for 2018 involve regulation and market maturing; with larger sums, crypto is becoming a grown-up game.
However, one reason for optimism is the amount of crypto-financing in 2018 thus far, which is exponentially larger than the amount spent on financing in 2017.
Over the last 30 days, BTC.X lost -22.54%.
The bull base for Tronix (TRX)
Tronix (TRX.X) is trading at $0.05, up 7% from yesterday. This rebound comes after a very difficult month for the cryptocurrency. What is the Tron price prediction?
Many altcoins are experiencing a nice bounce, including Tronix. The cryptocurrency is having a nice breakout. Looking at the technical analysis for the cryptocurrency, we notice many positive bullish signals for TRX:
- A strong, confirmed breakout;
- MACD trending up, entering 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 now in the bullish zone--and trending bullish. 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 strong bounce is a good signal that bottom was reached.
What events are driving the Tron price rebound? The coin has experienced much excitement amid reports that the founder Justin Sun is now in the final stages of closing a deal with the peer-to-peer protocol developer BitTorrent.
Tron has not publicly disclosed how they intend to use BitTorrent, which has approximately 170 million users. It’s speculated that the Tron network will leverage the peer-to-peer file distribution architecture as it seeks to build its Web 4.0 platform and shake off plagiarism concerns.
Tronix is led by Justin Sun, a Forbes Asia 30, who is being actively coached by Jack Ma, the AliBaba Founder. Tron is designed to become a decentralized content sharing platform based on the blockchain technology. With Tron, content creators can become the owners of their own creative work, so that they no longer have to rely on channels such as YouTube.
The Tronix virtual currency is undergoing a major token migration, where all ERC-20 tokens will be swapped by the official TRX mainnet tokens. The currency owners will be required to send all of their tokens to exchanges to complete this migration.
Are hacking issues alone responsible for cryptocurrency price drop today?
The sharp drop in the price of bitcoin and other virtual currencies is attributed to the hacking of the South Korean cryptocurrency exchange Coinrail, which was compromised over the weekend.
The obvious question is, why did the price of Bitcoin and Ethereum remain relatively more stable than the price of other virtual currencies?
It's important to note that EOS, Tronix and Bitcoin Cash are all more susceptible to panic selling than the mainstream coins.
Coinrail is a relatively minor cryptocurrency exchange in South Korea, and the volume traded on Coinrail will not impact the price of altcoins dramatically. However, when a panic attack hits the market, manipulators are going to be most noticeable in those areas where liquidity is lacking.
Low liquidity is an issue for most altcoins because it allows individual traders to manipulate the price of cryptocurrencies. What follows next is a wave of panic selling from individuals who don't believe in the long-term opportunity for those altcoins, and are looking to curtail losses by liquidating their positions.
The current decline in the price of cryptocurrencies is a move perpetrated by market manipulators who can, for all intents and purposes, drive down the price when it's opportunistic for them.
To follow the price and news about cryptocurrencies, please visit Finstead (and type "BTC.X price" or "BTC.X news" to get the latest scoop and information).
Bitcoin, Ethereum, Ripple and EOS: who's winning and who's losing?
As the crypto market gains more mainstream popularity, one thing is apparent--increasingly more altcoins are gaining in status, relative to the (still) most popular cryptocurrency, Bitcoin.
It's a common belief today in the crypto investment world, that Bitcoin is losing dominance--and history of its market cap relative to all other cryptocurrencies shows exactly that. Also, Ethereum, which was once viewed as the enabler of blockchain-based projects and companies, is slowly losing its supremacy.
Some insiders, such as Brad Garlinghouse, Ripple CEO, declared that Bitcoin could be on the verge of experiencing a price downfall in the cryptocurrency community as investors are gradually becoming aware of the different currencies and alternatives available to them.
Individual investors are becoming more focused on the mission of crypto companies and currencies (e.g., what problems are they solving?) and also the teams that run them.
So which coins are gaining in popularity relative to the rest? And which ones are likely to make it to or stay in the top 5 list (by market cap), if they are not there already?
EOS is a well-funded project--over $4B went into it, and now the company is rapidly releasing new features and functionalities. The EOS team is an A-team--and that's a requirement for companies planning to win in the crypto space.
But funds are not everything. Microsoft has spent billions trying to make Bing relevant and it failed. It’s not about the money but about the way you use resources, says Brad Garlinhouse. Ripple (XRP) has used its funds very wisely in a way that has created value for their users and coin holders.
When Bitcoin was initially offered in 2008, it was a game changer. It was the first time people could initiate transactions and trade without having banks or governments behind it.
But the landscape has changed. The secret source to winning in the long term is talent investment, focus on execution and long-term vision. EOS and Ripple seem to have that--and we'll watch closely how they execute.
Ethereum (ETH.X) price forecast: what to expect?
The criminal probe into whether traders are manipulating the price of Ethereum and other digital currencies brought down the price of Ethereum (ETH.X) to below $550.
The investigation team will look into tactics like posting numerous fake orders to trick other traders into buying or selling at speed, and canceling orders after the price starts to move.
This practice is outlawed by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which calls it ‘spoofing’.
Another tactic under investigation is wash trading. This involves a trader buying and selling to themselves to give the appearance of big activity in the markets — causing other traders to act while the seller incurs no financial risk. The Commodity Exchange Act passed in 1936 outlaws this practice.
ETH.X failed to stay above the $600.00 support and declined significantly. The price even spiked below the $550.00 support and formed a new monthly low at $543.
Here are the key technical parameters to be aware of:
- Resistance levels: $600.00 and $625.00
- Support levels: $550.00 and $520.00
- The RSI is currently near the oversold levels.
- The MACD is gaining momentum in the bearish zone.
Traders--exercise your caution.
Follow ETH.X on Finstead--just type "ETH.X news" or "ETH.X price" to get the latest Ethereum information and news.
Ethereum (ETH.X): the bull case
As we're entering another week of trading, we're shining the light on some of the recent developments around Ethereum (ETH.X) that shape investors' thinking and decisions about buying or selling this cryptocurrency.
Some of the crypto celebrities made public statements about Ethereum, which are now resonating in investors' minds.
The founder of Reddit, Alexis Ohanian, remarked that he's the most bullish about Ethereum among all cryptocurrencies, because developers are actually building 'stuff' on it. Ohanian acknowledged it is still early days for Ethereum, but there are applications such as CryptoKitties built on top of it (CryptoKitties is a game that allows users to purchase, breed and raise virtual cats--and the company behind it raised significant venture funding from top investors such as Andreessen Horowitz).
One of the reasons why investors have been somewhat shy about Ethereum is its perceived lack of scalability. However, Vitalik Buterin, the founder of this coin, is determined to change this.
Sharding is coming, says Buterin. Ethereum scaling will be improved through off-chain solutions, where some transactions will be handled off the blockchain and will only interact with it sparingly. The developers are also modifying the design of the parallelizability protocol, which is the root cause of many problems blockchain is facing.
Although we’re still in the early stages of Ethereum, the community is filled with some of the smartest minds in tech, and so many innovations are happening at the lightning speed.
Our outlook for next week is positive--we think that Ethereum will gain further and will exit the week with a position return.
However, don't forget that any investment in crypto coins is a pure speculation. For a more comprehensive guide and some good crypto investment tips, please review our list of commonly asked questions.