Značka: Ethereum Price

3 reasons why Ethereum can reach $5,000 in Q1

Ethereum’s native token Ether (ETH) has plunged by more than 20% after establishing its record high at around $4,867 on Nov. 10, 2021. Nonetheless, the sharp price pullback does not mean ETH can’t pursue a new record high in the next few months, as several widely-tracked technical, macroeconomic and on-chain indicators suggest. One of these indicators envisions Ether’s price reaching $5,000 in the first quarter of 2022 while others look are poised to support the bullish bias.ETH price painting falling wedgeEther’s recent price correction is painting a potential classic bullish reversal pattern known as “falling wedge.”In detail, falling wedges begin wide at the top but contract as the price moves lower. As a result, the price action forms a conical shape that trends lower as the reaction highs and reaction lows converge. Traders realize a bullish bias only after the price decisively breaks above the wedge’s resistance.As a result, expectations remain high that the ETH price would break above its falling wedge resistance in the coming sessions. In doing so, it would rise by as much as the maximum distance between the wedge’s upper and lower trendline when measured from the breakout point. Literally unchanged…$ETH is going to $5k pic.twitter.com/11mAQiJxJS— Kong Trading (@KongBTC) January 4, 2022That roughly puts the price target for Ether at $5,000.ETH deposits to exchanges dropTraders typically move their tokens to exchanges when they intend to sell/trade them for either fiat, stablecoins or other cryptocurrencies. Generally, a higher number of transactions made to crypto trading platforms reflects a high selling sentiment in the market. Conversely, if the token transactions plunge, they show a strong holding sentiment in the market.Data collected by blockchain analytics service Glassnode show that the number of on-chain Ether deposits to exchanges dropped to its 23-month low on Jan. 3.ETH number of exchange deposits. Source: GlassnodeAdditionally, another Glassnode metric that tracks the number of Ether addresses sending ETH to exchanges also reported declines over the last 30 days, the same period that saw the ETH/USD rate dropping nearly 11%.Ethereum number of addresses sending to exchanges. Source: GlassnodeMeanwhile, the total Ether balance across all the exchanges has been in a downtrend since Aug. 2020, suggesting that ETH investors are in it for the long haul as its price rose from nearly $400 to a little over $3,800 in the same period.Ethereum balance on exchanges. Source: GlassnodeCheap money here to stay? Ether’s $1,000-plus plunge from Nov. 2021 to date came majorly in the wake of the Federal Reserve’s hawkish turn.The U.S. central bank decided to accelerate the unwinding of its $120 billion a month asset purchase program, followed by three rate hikes in 2022 from its near-zero levels, to stem rising inflation. Its loose monetary policy was one of the primary catalysts behind similar price rallies across Ethereum, Bitcoin (BTC) and other crypto markets.ETH/USD and BTC/USD weekly price chart. Source: TradingViewBut the Fed’s efforts to tame inflation from its current 6.8% level with three rate hikes may not impact Bitcoin and Ethereum prices in the long run. For example, Antoni Trenchev, managing partner of crypto lender Nexo believes that cheap money is here to stay. “The No. 1 influencing factor for Bitcoin and cryptocurrencies in 2022 is central bank policy,” he told Bloomberg. He added:“Cheap money is here to stay, which has huge implications for crypto. The Fed doesn’t have the stomach or backbone to withstand a 10%–20% collapse in the stock market, along with an adverse reaction in the bond market.”Hungarian-born billionaire Thomas Peterffy also said that investors should allocate at least 2%–3% of their net portfolio to cryptocurrencies like BTC and ETH in case the fiat money “goes to hell.” Related: More billionaires turning to crypto on fiat inflation fearsAdditionally, Bridgewater Associates founder Ray Dalio revealed that he has been holding BTC and ETH in his portfolio against the risks of cash devaluation led by higher inflation.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Kevin O'Leary says his crypto holdings could reach 20% of portfolio

Shark Tank celebrity Kevin O’Leary, also known as Mr. Wonderful, says he would be ready to increase his crypto allocations up to 20% as soon as there are clearer regulations around stablecoins. O’Leary, a former Bitcoin (BTC) skeptic, is now a vocal advocate of cryptocurrency, which currently makes up over 10% of his investment portfolio. Mr. Wonderful is particularly focused on U.S. dollar-pegged stablecoins, which he sees as an effective hedge against rising levels of inflation. By staking stablecoins, he pointed out, he can make up to 6% returns. He explained to Cointelegraph: ​”When inflation is 6%, you’re buying power 12 months from now is 6% less. And that’s all lot […] I’m a huge advocate for solving this problem with stablecoin.”A clear regulatory framework would allow O’Leary to convert large cash positions into stablecoins. Currently, however, he cannot invest beyond 5% into stablecoins because of regulatory constrains. “My own compliance department consider stablecoins as an equity no different than a stock,” he said. According to O’Leary, his excitement around stablecoins is shared by many institutional investors, who are “working quietly in the background” and waiting for regulators to make their move. In addition to stablecoins, Mr. Wonderful is also an investor in Bitcoin, Ether (ETH), and other cryptocurrencies. However, due to their underlying volatility, these cryptos are unlikely to make up a large portion of an institutional investor’s portfolio, he claimed. “You’re not going to get there to a 20, 30% in Bitcoin in an institutional or sovereign mandate, you’re just not. Stablecoins have that potential,” he explained.Watch the full interview on our YouTube channel and don’t forget to subscribe! 

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Ethereum whales dumping ETH as price slides below $4K, data shows

Ethereum is having difficulty keeping its richest investors in line as its native token, Ether (ETH), hints at logging more losses in the near term.Blockchain data analytics service Glassnode revealed that the number of Ethereum addresses holding at least 1,000 ETH dropped to 6,292 this Monday, the lowest reading since April 2017. At its year-to-date peak, the numbers were 7,239 in January.Number of Ethereum addresses with balance of at least 1,000 ETH. Source: GlassnodeOn-chain analysts typically observe ETH distributions among addresses to realize retail and institutional sentiments. They consider wallets that hold above 1,000 ETH (around $3.92 million at currency exchange rates) as “whales,” primarily for their ability to influence interim market trends via large sell and/or buy orders.But as the numbers of these so-called whales drop, it reflects an ongoing selling trend among the richest Ethereum wallet owners. For instance, the number of Ethereum addresses that hold at least 10,000 ETH (or around $39.20 million) has also plunged, from 1,208 in June to 1,156 at the time of this writing, marking an almost 4.5% decline.Number of Ethereum addresses with a balance of at least 10,000 ETH. Source: GlassnodeBut, on a year-to-date timeframe, the numbers have gone up from 1,065 to 1,156, just as the cost to purchase 1 ETH, in the same period, has jumped nearly 450%. Small investors are accumulatingUnlike whales, wallets that hold ETH in small quantities have been at the forefront of Ether’s 2021 price rally.For example, Glassnode’s data shows that the number of Ethereum addresses with a non-zero ETH balance reached an all-time high of over 71.23 million on Monday. That included wallets with at least 0.01 ETH (~$40), whose numbers shot up to 20.31 million versus 10.66 million at the beginning of this year.Meanwhile, addresses that hold at least 0.1 ETH (~$400) jumped to 6.44 million this Monday compared to 3.62 million on Jan. 1, 2021. That is almost a twofold rise, signaling a higher retail interest in the world’s second-largest cryptocurrency.Number of Ethereum addresses with a balance of at least 0.1 ETH. Source: GlassnodeETH eyes bullish reversalThe latest decline in Ether whales appeared as Ether struggled to close decisively above $4,000, its psychological resistance level. On Tuesday, ETH/USD dropped by over 3.27% to an intraday low of $3,880. Its drop came as a part of a wider correction that started after Ether tested a downward sloping trendline as resistance on Dec. 23. The chart below shows that the trendline is a part of a descending channel that appears like a “falling wedge.”ETH/USD daily price chart featuring falling wedge. Source: TradingViewIn detail, falling wedges are technically bullish reversal patterns that appear after the price trends lower inside a trading range featuring two converging trendlines. The instrument eventually breaks above the structure’s upper trendline ahead or after reaching the apex (where two trendlines converge).The profit target in a rising wedge scenario is generally obtained after adding the maximum distance between the structure’s upper and lower trendline to the breakout point. That puts ETH’s price en route to the $4,200–5,000 range, depending on its breakout level.ETH/USD daily price chart featuring falling wedge targets. Source: TradingViewNevertheless, Ether’s price still has enough room to decline, toward $3,200 in the worst-case scenario. The level is where wedge’s trendlines converge.Related: 3 reasons why Ethereum price can drop below $3K by the end of 2021Meanwhile, independent market analyst Pentoshi said that nothing concrete can be predicted for Ether now as it remains stuck between a “bear contested” and a “bull contested” area, as shown in the chart below.ETH/USD three-day price chart. Source: TradingView, Pentoshi“Maybe it’s the bottom. Don’t care,” tweeted Pentoshi on Tuesday. “I don’t like when them market gives this many times to buy an area with important historical context like this Would rather pay for confirmation.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Ether’s growth as independent asset fuels ETH-BTC flippening narrative

The narrative surrounding Ether (ETH) of it fast transforming into an independent asset has been around for some time now. However, the last few months have seen this notion gain an increasing amount of mainstream traction, as is best highlighted by the fact that, since Oct. 1, ETH has showcased substantial northbound movement against Bitcoin (BTC). To put things into perspective, toward the beginning of November, the one-month realized correlation between the BTC/ETH pair dipped as low as 60%, its lowest ever in the currency’s decade-old history. Furthermore, since the start of the year, while Bitcoin registered gains of 105%, Ether went up by a whopping 505%, thus outperforming the flagship crypto by nearly five times.Ether gaining an upper hand is perhaps best reflected in that, over the course of the last couple of months, the ETH/BTC pair has continued to trend north, despite there being a major market dip across the board since the start of December. In this regard, even when the value of BTC fell back below $50K, the ETH/BTC pair price continued to accrue value, quickly rising by around 13%, thus hitting a three-year high.The ‘flippening’ narrative Speaking with Binance’s research wing, a spokesperson for the cryptocurrency exchange told Cointelegraph that the above stated activity — wherein ETH has been able to muster a lot of independent market support against Bitcoin — has been quite unusual considering that the ETH/BTC pair tends to only rally during bull runs, adding: “This is not to say that ETH has already decoupled from BTC, but it provides a clear-cut glimpse that not all alts are correlated to BTC movements.” The spokesperson further elaborated:“It’s important to acknowledge that ETH may no longer be considered as an alt, but it’s a token with its unique characteristics. The key drivers for the recent rise can be attributed to the growing Metaverse, GameFi, and NFT narratives, which are all largely built on the ETH network.”Although ETH is still far from being fully decoupled, the spokesperson highlighted that such a vision can no longer be considered just a pipedream, as the overall narrative is already beginning to shift thanks to Ethereum’s new emerging use cases and adoption. Not only that, the analyst also opined that a similar scenario could very well play out for a number of other prominent altcoins as well: “Just like in traditional equities, there will be no distinction between ‘BTC and alts,’ but rather with prices of all tokens being independently driven by both systematic and unsystematic risks.”Igneus Terrenus, head of communications for cryptocurrency exchange Bybit, told Cointelegraph that, at the end of the day, the value of a digital asset is determined by its supporters and investors, and with more than six years of development and a plethora of smart contract applications built atop Ethereum — including those related to fledgling spaces like DeFi and NFTs — the premium altcoin has now developed an identity and ecosystem of communities that exist independently from that of BTC, particularly over the past year. “Overlaps will still remain, but there is now sufficient difference to sustain a divergence in price movement,” Terrenus said, adding:“As the demographics of BTC and ETH camps continue to diverge, we shall also expect to see their respective price actions gradually disentangling even further.”ETH is uniquely positioned in the marketNetta Korin, co-founder of Orbs, a public blockchain infrastructure, highlighted to Cointelegraph that ETH’s straight-up northbound movement since Oct. 1 continues to add fuel to the narrative that Ether truly could flip Bitcoin sometime in the near future. Even though a vast majority of other cryptocurrencies continue to exhibit a high degree of correlation with BTC, she said that Ether has clearly proven to be “oil for DApps.” Korin added that Ethereum has long passed Bitcoin as the most used blockchain and, even when it comes to recovery after periods of market cooldowns, it has demonstrated significantly better performance than BTC. She further stated that the upcoming Eth2 upgrade will “enhance the demand perspective,” adding: “New supply and demand mechanics of Ethereum and its position as the leading financial infrastructure and a crucial backbone for some of the most popular projects, like MakerDAO and Uniswap make ETH decoupling a potential reality.”Korin also pointed out that Ethereum is a key player in DeFi and a central platform for the NFT space, which seeks to build financial applications for lending and trading on the blockchain — of which more than 3,600 DApps are currently running atop the Ethereum ecosystem. Not only that, Ether could also be an inflation hedge due to its links to DeFi and the market for NFTs, two areas that will grow exponentially in 2021, in her view. “Ether is on pace to overtake Bitcoin as the top cryptocurrency by market capitalization,” she concluded.Could ETH’s continued independence help spur BTC?If ETH’s decoupling is an imminent reality, will this impact a potential BTC bullish move if the ETH/BTC pair starts to grow? On the subject, a member of Binance’s research wing pointed out to Cointelegraph that, if the price spread between the ETH/BTC pair continues to grow at its current trajectory, it would still not be correct to say that the development could lead to an overall growth spurt for BTC, noting:“Large investors will continue to buy BTC regardless of how bearish it looks on the charts or how other tokens are performing. They do so because BTC remains […] the pioneer in the space and market driver. This is further fuelled by the narrative of BTC being a digital store of value and hedge against inflation.” That being said, the Binance analyst did concede that, when considering the other end of the spectrum, they still expect to see a feeding frenzy amongst both retail and institutional investors as they rush in to increase their exposure in ETH.Ether’s increasing market clout has not gone unnoticed by major financial institutions around the globe, with U.S. banking giant JPMorgan Chase claiming in a recent report that ETH could be a better bet for investors than BTC, especially as the digital asset market continues to mature and evolve. According to the company’s research analysts, ETH’s fivefold rise in comparison to BTC over the last year has resulted in the altcoin accruing a market cap that is nearly half of that of Bitcoin’s.Another aspect of ETH that has many investors starry-eyed is the network’s potential to gain a major foothold in the burgeoning Web 3.0 ecosystem, which is extremely popular at the moment even though its real-world implementation is still years away. While nobody can for sure ascertain how this space will continue to evolve, there is a good chance that ETH will capture much of the value associated with the decentralized Web 3.0 in the future.Related: Status check: Ethereum in full deflation mode as Eth2 merge gets closerLast but not least, it is worth noting that the Ethereum network’s recently implemented London upgrade — which went live during August 2021 — altered the way in which the currency’s gas fee rates are calculated, effectively burning a portion of all ETH-based fees and reducing the altcoin’s total supply pool. Numbers-wise, this has resulted in Ether’s annual inflation rate dipping from ~4% to ~3%.Not only that, Ether’s ever-evolving monetary policies are also designed to help convert the asset into a deflationary one, making it attractive to long-term owners as well as institutional funds. Therefore, it stands to reason that Ether’s perception as an independent asset will only continue to garner more support.

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Small Ethereum investors increase exposure as ETH loses $4K level

Ethereum’s native token Ether (ETH) has dropped by over 18% after establishing an all-time high around $4,867 on Nov. 10, now trading near $3,900. Nonetheless, the plunge has not deterred retail investors from buying the token in small quantities.According to data gathered by Glassnode — a blockchain analytics platform, the number of Ether addresses holding less than or equal to 0.01 ETH reached a record high level of 19.95 million on Dec. 4, the day ETH dropped to as low as $3,575 (data from Coinbase).Ethereum addresses with balances less than or equal to 0.01. Source: GlassnodeMeanwhile, the number of Ethereum wallets with balances of at least 0.1 ETH also kept climbing despite Ether’s correction from $4,867 to $3,575, eventually hitting a new all-time high of 6.37 million on Dec. 12. As a result, the number of Ether addresses with a non-zero balance also reached a new record high of nearly 70 million on Dec. 12. In contrast, addresses holding less than or equal to 1 ETH dropped alongside prices, indicating that they were less interested in buying Ether’s sessional dips.  Ethereum addresses with balances less than or equal to 1 ETH. Source: GlassnodeBounce ahead?The army of retail investors buying Ether in small quantities marches ahead as the ETH price drops toward a support confluence.Notably, Ether plunged Monday by over 5% to near $3,900 in a selloff inspired by similar corrections across the cryptocurrency space. Nonetheless, ETH price reached an area that has been lately attracting buyers.ETH/USD daily price chart featuring Support Confluence. Source: TradingViewThe first support came from the lower trendline of the descending channel pattern — the blacked range shown in the chart above. Meanwhile, the purpled 100-day simple moving average (100-day SMA) and the red pullback area — as it has been since Oct. 20 — raised Ether’s potential to retrace upward in the near term.While smaller retail investors seem to have been accumulating Ether, their larger counterparts look conflicted.Ethereum addresses with balances less than or equal to 1,000 ETH. Source: GlassnodeFor instance, Glassnode data shows a marginal recovery in the buying interest by the Ethereum wallets with balances of at least 1,000 ETH. Still, overall, their numbers have gone down from near 7,200 to below 6,350 in 2021.Exchanges’ Ether balancesMore upside cues come from Ether’s declining balances across all the crypto exchanges. The number of coins held by exchanges recovered from nearly 14 million ETH to 14.13 million ETH since Dec. 9 — which coincided with an almost 10.50% price drop — but its long-term trend remains skewed to the downside.Ethereum balance on all exchanges versus ETH price. Source: GlassnodeA lower ETH balance across exchanges hints at traders’ intention to hold their coins or stake them in the pools of decentralized finance (DeFi) projects to earn yields instead of trading them for other assets.Related: Data shows pro traders are currently more bullish on Ethereum than BitcoinDeFi’s total value locked (TVL) sits at a new all-time high above $250 billion, according to data provided by Defi Llama, out of which Ethereum’s TVL came out to be over $180 billion.Total capital locked across the Ethereum ecosystem. Source: Defi Llama”However, Ethereum’s dominance over DeFi activity has taken a big hit in H2 2021,” reminded Delphi Digital, a crypto-focused investment firm, adding that: “As the multi-chain narrative plays out, capital has moved to ecosystems like Solana, Terra and Avalanche.”High gas fees have been the main reason behind investors seeking potential “Ethereum killers.”For instance, a decentralized exchange swap costs $70 on Ethereum but $1 on Terra and Solana, although some analysts anticipate that Ethereum’s full transition from proof-of-work to proof-of-stake next year would solve the high gas problem.”Ethereum’s price will rise at a much faster rate than Bitcoin, due to the move to proof-of-stake,” noted Tom Higgins, CEO at asset management platform Gold-i.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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3 reasons why Ethereum price can drop below $3K by the end of 2021

Ethereum’s native token Ether (ETH) reached an all-time high around $4,867 earlier in November, only to plunge by nearly 20% a month later on rising profit-taking sentiment. And now, as the ETH price holds $4,000 as a key support level, risks of further selloffs are emerging in the form of multiple technical and fundamental indicators.ETH price rising wedgeFirst, Ether appears to have been breaking out of “rising wedge,” a bearish reversal pattern that emerges when the price trends upward inside a range defined by two ascending — but converging — trendlines.Simply put, as the Ether price nears the Wedge’s apex point, it risks breaking below the pattern’s lower trendline, a move that many technical chartists see as a cue for more losses ahead. In doing so, their profit target appears at a length equal to the maximum wedge height when measured from the breakout point.ETH/USD weekly price chart featuring Rising Wedge. Source: TradingViewAs a result, Ether’s rising wedge downside target comes out to be near $2,800, also near its 50-week exponential moving average (50-week EMA). Bearish divergenceThe bearish outlook in the Ether market appears despite its ability to bear the massive selling pressures felt elsewhere in the cryptocurrency market in recent weeks.For instance, Bitcoin (BTC), the leading crypto by market cap, fell by 30% almost a month after establishing its record high of $69,000 in early November, much higher than Ether’s decline in the same period. That prompted many analysts to call Ether a “hedge” against the Bitcoin price decline — also as ETH/BTC rallied to its best levels in more than three years.But it does not take away the fact that Ether’s recent price rally has coincided with a decline in its weekly relative strength index (RSI), signaling a growing divergence between price and momentum.ETH/USD weekly price chart featuring divergence between price and RSI. Source: TradingViewAdditionally, the recent ETH price pullback also had the RSI oscillator fall below 70, a classic sell indicator.Fed “dot plot”More downside cues for Ether come ahead of the Federal Reserve two-day policy meeting starting on Dec, 14 when the U.S. central bank will discuss how quickly it may need to taper its $120 billion a month asset purchasing program to gain enough flexibility for potential rate hikes next year.Just last month, the Fed announced that it would scale back its bond-buying at the pace of $15 billion per month, suggesting that the stimulus would eventually cease by June 2022. Nonetheless, a string of recent market reports showing a tightening jobs market and persistently mounting inflationary pressures prompted the Fed officials to end tapering “perhaps a few months sooner.”20 CenBanks hold meetings next week as inflation keeps rising w/final decisions for 2021 due at Fed, ECB, BoJ, BoE which together responsible for half of world econ. CenBank balance sheets have risen in lockstep to ATHs, but now there could be divergence. https://t.co/GgOLGCNbjR pic.twitter.com/mrrhwUVcet— Holger Zschaepitz (@Schuldensuehner) December 12, 2021Market anticipations also adjusted, with a Financial Times survey of 48 economists anticipating the stimulus to end by March 2022 and most respondents favoring a rate hike in the second quarter.The period of loose monetary policies after March 2020 has been instrumental in pushing the ETH price high by over 3,330%. Therefore, the increasing likelihood of tapering can certainly put the brakes on the current rally, if not the bull market as a whole, according to some ana.From there I expect a very aggressive approach from the Fed because they’ll recognize we are in a bubble and something extreme needs to be done.Then we get our multi-year bear market.— K A L E O (@CryptoKaleo) December 10, 2021

Markets anticipate the Fed will update its policy statement and summary of economic projections (SEP) this week. In doing so, more central bank officials would adjust the “dot plot” to favor an earlier-than-anticipated rate hike against rising inflation.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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CME Group launches micro Ether futures as ETH hovers at $4K

Major derivatives marketplace Chicago Mercantile Exchange Group has expanded its crypto offerings to include a micro Ether futures product.In a Monday announcement, the CME Group said it had launched a micro Ether (ETH) futures contract sized at 0.1 ETH, giving institutional and individual traders another product for Ether exposure. The cash-settled micro ETH derivatives offering is trading under the Globex code METZ1 and joins crypto derivatives products at the exchange including micro Bitcoin (BTC) futures, Bitcoin futures, options on Bitcoin futures and Ether futures. The newest member of the CME Group cryptocurrency product family has arrived. Micro Ether futures are available for trading. https://t.co/bJoZWA7qZz— CME Group (@CMEGroup) December 6, 2021Tim McCourt, CME Group’s global head of alternative investment products, said the offering would allow investors “to hedge their spot Ether price risk or more nimbly execute Ether trading strategies.” Genesis Global Trading, one of the liquid providers for CME Group’s crypto derivatives offerings, said it had already executed a contract for the micro ETH futures product in partnership with crypto investment firm XBTO.“The Micro Ether futures contract fills a need for greater flexibility and more precise delta hedging,” said Joshua Lim, Genesis’ head of derivatives. Related: Kelly Strategic Management files for Ethereum futures ETFThe announcement came following the price of ETH and many cryptocurrencies including Bitcoin falling significantly over the weekend. According to data from Cointelegraph Markets Pro, the ETH price has dropped more than 15% since hitting an all-time high of $4,785 on Nov. 8. At the time of publication, the price of the second-largest cryptocurrency by market capitalization is $4,016, having fallen more than 13% in the last seven days.CME Group first launched its Bitcoin futures contracts in December 2017 amid the major bull run. The exchange’s micro Bitcoin futures product launched in May, with the company reporting on Thursday that it had traded more than 3.3 million contracts.

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Ethereum bulls retain hopes of $10K despite ETH price chart bear flag

Ethereum’s native token Ether (ETH) looks poised to extend its selloff this week as it wobbles near a key support level of $4,000.ETH price dropped by over 5.50% on Dec. 6 to an intraday low at $3,913. In doing so, it slipped through upward sloping support that constituted an Ascending Channel that — more or less — appears like a Bear Flag, a bearish continuation setup.ETH/USD daily price chart featuring Bear Flag setup. Source: TradingViewConservative traders typically spot Bear Flags when an instrument consolidates higher inside a parallel channel after a considerable price drop (called Flagpole). They anticipate the price to break below the Flag’s lower trendline. And when it does, traders set their profit target by measuring the Flagpole’s height and subtracting it from the breakout level.Applying the Bull Flag strategy to Ether’s ongoing price trends, one can expect the cryptocurrency to drop towards $3,200 in the sessions ahead. Interestingly, the level is also near the 0.5 Fib line (~$3,264) of the Fibonacci retracement graph drawn from the $720-swing low to the $4,808-swing high.More confirmation neededWhile the Bear Flag setup hints at more pain for Ether ahead, some analysts believe the Ethereum token still has more room to run to the upside.For instance, PostyXBT, an independent market analyst, asked his massive follower-base on Twitter to turn attention to Ether’s deep price wick from Saturday, underscoring how the cryptocurrency’s sudden crash from near $4,240 to as low as $3,575 (data from Coinbase) was met by traders with an aggressive buying response.”The weekly close above $4k means that ETH is one of the strongest looking coins out there,” the pseudonymous analyst noted, adding that not many held the structure “despite the wick.”ETH/USD weekly perpetual futures contract chart. Source: TradingViewMeanwhile, another popular analyst Crypto FOMO also referred to the Saturday rebound as a reason to stay bullish on Ether. In an analysis published Monday, the analyst said that the cryptocurrency’s ability to hold its rising channel support (the Bear Flag structure) might prompt bulls to push its value to $10,000.”That is also because Ethereum is crashing a lot lesser than other cryptos, which is very bullish,” the channel noted while highlighting Ether’s growing strength against Bitcoin (BTC).Top ten cryptocurrencies’ performance against USD and BTC in the last 30 days. Source: MessariOn its weekly chart, Ether looks to have been eyeing a move toward $6,500 after breaking out of its Ascending Triangle.In detail, the ETH price left the Triangle range in the week ending Oct. 25 after consolidating inside it for a little over four months. Nonetheless, traders returned to test the structure’s upper trendline as support, as is common across bullish continuation setups.ETH/USD weekly price chart featuring Ascending Triangle setup. Source: TradingViewAs long the price holds itself above the Triangle’s upper trendline, its likelihood of continuing its rally upwards remains higher — by as much as the structure’s maximum height, as shown in the chart above. On the other hand, a decisive break below the Triangle’s lower trendline risked invalidating the bullish setup.Strong fundamentalsJames Wo, CEO/Founder of DFG Group — a Singapore-based venture capital firm, blamed Ether’s consistently positive correlation with Bitcoin behind its latest price corrections, noting that a spot market selloff in the BTC market, led by the ongoing Omicron FUD, has had exchanges liquidate $2 billion worth of traders’ margined positions, hurting ETH in tandem.Related: BTC sentiment ‘comparable to a funeral’ — 5 things to watch in Bitcoin this weekBut the analyst, too, anticipated a price rebound for ETH based on its successful adoption across the emerging nonfungible token (NFT), decentralized finance (DeFi), and metaverse space.Top five DeFi chains based on total-volume locked. Source: Defi Llama “The levels of open interest levels seen up to this correction for both BTC and ETH were an important indicator that a bearish scenario was highly probable,” Wo explained, adding:”We still believe that fundamentals are strong and long-term valuations are still very low based on the technological advancements and contributions we are witnessing from this industry.”ETH/USD was trading at $4,050 at the time of this writing.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Ethereum acts as a 'hedge' in Bitcoin price crash as ETH/BTC hits 3-year high

Ethereum’s native token Ether (ETH) plunged alongside other cryptocurrencies on Dec. 4. Still, its move downside did not deter it from hitting a three-year high against Bitcoin (BTC), the world’s leading crypto by market capitalization.The ETH/BTC exchange rate jumped a little over 11.50% to hit 0.0835 BTC for the first time since May 2018. The pair’s price rally appeared in contrast to Ether’s 15% price drop against the U.S. dollar on Saturday, which appeared in the wake of a market-wide selloff that saw Bitcoin plunging by as much as 21% intraday.ETH/USD daily price chart. Source: TradingViewThe ETH vs. BTC “hedge” narrative emergesWhile Ether’s losses were substantial, they were relatively milder compared to Bitcoin in USD terms as the ETH/BTC pair surged to a three-year high. At the same time, some analysts believed that investors started treating the second-largest cryptocurrency as a haven against Bitcoin during the Saturday crash.”It seems that investors are taking ETH as a hedge here,” said Crypto Birb, an independent market analyst in a tweet Saturday, pointing to a four-hour ETH/BTC price chart (as shown below) that showed the pair retracing sharply after testing its 200-period moving average (the orange wave) as support.ETH/BTC four-hour price chart featuring 200-period MA support. Source: TradingViewLukas Enzersdorfer-Konrad, chief product officer at Bitpanda, noted that ETH/BTC’s November close was the best one in the last 45 months, meaning bulls still had “some power left for an additional run.””Ethereum is outperforming Bitcoin by a large margin this year […] It increased its market dominance to 22%. The number of active addresses on the network continues to climb while the net issuance of ETH continues to fall which might be the main reason for its rapid rise.”Technical outlookAs Cointelegraph covered earlier, Ether has shown the prospects of continuing its upward trend due to a technical support pattern, dubbed Ascending Triangle.Related: Ethereum ‘about to go parabolic’ against Bitcoin as analysts weigh BTC bear caseOn Saturday, the ETH/BTC pair broke out of the Ascending Triangle range to the upside, accompanied by a slight increase in its trading volumes. In a “perfect” world, the pair’s move upside should stretch until it hits levels at length equal to the maximum distance between the Triangle’s upper and lower trendlines when measured from the breakout point.In a “perfect” world, the pair’s move upside should stretch until it hits levels at length equal to the maximum distance between the Triangle’s upper and lower trendlines when measured from the breakout point.ETH/BTC weekly price chart featuring Ascending Channel pattern. Source: TradingViewAs shown in the chart above, the Triangle’s upside target, from the breakout point near 0.077 BTC, puts the profit target near 0.1 BTC.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Increased utility in DeFi, NFTs back Ethereum’s 3-year high in its ETH/BTC pair

This week, Ether (ETH) price reached a new 2021 high against Bitcoin (BTC), bringing its year-to-date returns slightly above 350% and according to technical analysis, the rally could extend even further.On Dec. 1, bids for the ETH/BTC pair hit 0.0835 BTC on Coinbase for the first time this year. The upside move came as a part of an uptrend that started mid-October after Ether bottomed out against Bitcoin at 0.0630 BTC to carve out almost 41% price retracement.ETH/BTC daily price chart. Source: TradingViewGrowing adoption propels Ether’s boomThe ETH/BTC price rally reflect deep interest in Ethereum, which is currently the world’s leading smart contract platform by users and market capitalization. This is slightly different than the scenario for Bitcoin, which typically functions as a speculative hedge against inflation across global economies.As of late, Ethereum has been become a core asset within crypto growth sectors like nonfungible tokens (NFT), decentralized finance (DeFi) and the Metaverse. The firms operating in this space require Ether to run their smart contracts, which in turn, has increased demand for the altcoin and supported a steady uptrend in its price.Total valued locked inside ETH-based DeFi platforms (including staking). Source: Defi LlamaDemand for Eth is expected to remain robust in the coming year and this simple fact has many analysts projecting prices within the $6,000 to $10,000 range. ETH/USD daily price chart. Source: TradingViewMatt Maley, the chief market strategist for Miller Tabak + Co., anticipated additional gains for Ether should it break above its mid-November high around $4,900. According to Maley, Bitcoin bulls remain under pressure near the cryptocurrency’s mid-November and mid-April highs of $69,000 to $65,000. If Ether manages to hit and hold a new all-time high while BTC trades in a downtrend, Maley said: “It will show that Ether has become the new crypto of choice for most investors.”The technical outlook for Ether against Bitcoin has also been suggesting stronger bull runs for the former in the future.Related: Ethereum approaches a new ATH, but derivatives data reflects mixed emotionsA prolonged bullish breakout could be in playThe latest bout of buying has had ETH/BTC break above a multi-month resistance trendline that constitutes an ascending triangle pattern and now the pair eyes an extended bull run towards 0.1 BTC, as shown in the chart below.ETH/BTC weekly price chart featuring Ascending Triangle setup. Source: TradingViewTypically, ascending triangles are continuation patterns, meaning, they tend to send the price in the direction of its previous trend by as much as the maximum height between the upper and lower trendline when measured from the breakout point.ETH/BTC’s breakout point comes out to be near 0.077 BTC while its triangle’s maximum height is 0.022 BTC. In a “perfect” world, this would place the ETH/BTC pair on path to 0.1 BTC, but given the volatile nature of the cryptocurrency sector, anything is possible. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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