Značka: ethereum

Federal regulators are preparing to pass judgment on Ethereum

Are regulators with the U.S. Securities and Exchange Commission gearing up to take down Ethereum? Given the saber-rattling by officials — including SEC Chairman Gary Gensler — it certainly seems possible.The agency went on a crypto-regulatory spree in September. First, at its annual The SEC Speaks conference, officials promised to continue bringing enforcement actions and urged market participants to come in and register their products and services. Gensler even suggested crypto intermediaries should break up into separate legal entities and register each of their functions — exchange, broker-dealer, custodial functions, etc. — to mitigate conflicts of interest and enhance investor protection.Next, there was an announcement that the SEC’s Division of Corporation Finance plans to add an Office of Crypto Assets and an Office of Industrial Applications and Services to its Disclosure Review Program this fall to assist in registering crypto market participants. Then, there was testimony before various Senate Committees on proposed legislation to overhaul crypto regulation, where Gensler reiterated his belief that nearly all digital assets are securities, implicitly endorsing his view that such digital assets and relevant intermediaries should register with the SEC. But perhaps the most ground-shaking shots occurred when the SEC took aim at Ethereum, possibly reversing a years-long détente that began when a previous SEC official stated that Ether (ETH), along with Bitcoin (BTC), was not a security. In his testimony before the Senate Banking Committee, Gensler suggested that Ethereum’s transition to proof-of-stake (PoS) from proof-of-work could have brought Ethereum under the SEC’s purview because, by staking coins, “the investing public [is] anticipating profits based on the efforts of others.”Related: Biden is hiring 87,000 new IRS agents — and they’re coming for youLater, in a complaint filed against a token promotor, the SEC suggested that all transactions occurring on the Ethereum blockchain could fall within the SEC’s jurisdiction because more of Ethereum’s nodes are located in the U.S. than any other country. These recent positions on Ethereum appear to be clear SEC overreach and more saber-rattling meant to prompt the industry to register.First, back in 2018, then-SEC Director of Corporation Finance William Hinman declared that Bitcoin and Ether were not securities in the eyes of the SEC. This seemed rooted both in the fact that Ethereum was sufficiently decentralized and in the difference between cryptocurrencies — replacements for sovereign currencies — and digital tokens — assets revolving around a specific venture. But Ethereum’s Merge to PoS has potentially muddied those waters, with the SEC suggesting that Ether could now be a security under the Howey Test (an asset is a security if it is 1) an investment of money; 2) in a common enterprise; 3) with a reasonable expectation of profits; and 4) derived from the efforts of others). It’s unclear how the Merge could have substantively changed the decentralized nature and purpose of Ethereum to now make it a security (it’s still more akin to Bitcoin than digital tokens).Related: Biden’s cryptocurrency framework is a step in the right directionArguably, though, it is closer to meeting the Howey factors, especially with more crypto-lending-like attributes that the SEC has already alleged can make a product a security (see BlockFi action). PoS, however, is still quite distinct from crypto-lending platforms where tokens are staked and interest earned by what the lending company does rather than the combined efforts of the stakers. So, it still seems far-fetched to deem Ether a security when viewed in the context of what the Ethereum blockchain is primarily used for — smart contracts — and how its coins are mined.Second, the SEC’s allegation that transactions occurring on the Ethereum blockchain are subject to U.S. jurisdiction because more of Ethereum’s nodes are located in the U.S. than any other country would expand the SEC’s reach far beyond the United States. Based on that reasoning, the SEC could assert jurisdiction over an Ethereum-based token developed in Germany, offered and sold in Germany exclusively to Germans, because the cluster of Ethereum nodes in the U.S. means that the transactions effectively occurred in the United States. Such an outcome would seem highly unlikely to pass legal muster. Does all this aggressive posturing by the SEC foreshadow an enforcement action against Ethereum (who would they sue, anyway?) or actions against foreign actors for foreign conduct on Ethereum? More likely, this is a negotiating tactic meant to scare the industry into succumbing to the SEC’s jurisdiction voluntarily. “Come in and talk to us — and register,” essentially. Because if Ethereum is at risk of being deemed a security/exchange — Ethereum! — then surely so are all the other tokens and decentralized finance platforms in the industry — except, presumably, Bitcoin (for now).Adam Pollett is a partner in Eversheds Sutherland’s Securities Enforcement and Litigation practices where he defends financial institutions, broker-dealers, investment advisers and individuals in regulatory investigations and enforcement matters involving the US Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and state securities regulators.Andrea Gordon is counsel at Eversheds Sutherland and advises clients on white collar, compliance, SEC and FINRA matters. She has extensive experience conducting internal investigations, evaluating and developing corporate compliance programs, and representing both corporate and individual clients in regulatory inquiries, administrative proceedings and complex commercial litigation.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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CoinShares' Butterfill suggests 'continued hesitancy' among investors

Minor inflows for digital asset investment products over the last few weeks suggest a “continued hesitancy” towards crypto amongst institutional investors amid a slowdown of the U.S. economy. In the latest edition of CoinShares’ weekly “Digital Asset Fund Flows” report, Coinshares head of research James Butterfill highlighted stand-offish institutional sentiment towards crypto investment products, which saw “minor inflows” for the third week in a row. “The flows remain low implying continued hesitancy amongst investors, this is highlighted in investment product trading volumes which were US$886m for the week, the lowest since October 2020.”Between Sept. 26 and Sept. 30, investment products offering exposure to Bitcoin (BTC) saw the most inflows at just $7.7 million, with Ether (ETH) investment products close behind with $5.6 million worth of inflows. Short BTC products represented the only other notable inflows of $2.1 million. These inflows were offset by more than $3.5 million worth of outflows for investment products offering exposure to altcoins such as Polygon (MATIC), Avalanche and Cardano (ADA), while multi-asset and Solana funds also shed $700,000 and $400,000 during that week. Commenting on the current state of the crypto market, and the institutional outlook of late, Markus Thielen, head of research and strategy at Singapore-based crypto financial services platform Matrixport noted that:“The market is currently in a wait-and-see environment whereas a potential positive shift after the US Mid-Term elections could have significant regulatory changes.”“Last night’s US economic data, notably the ISM index, showed that growth has materially slowed down in the US economy and there is now the possibility that the Fed will become less hawkish. The USD rally appears to have lost one of its key drivers and this could signal a pause in rate hikes. This could be very bullish for digital assets into year-end,” he added.Looking at the month-to-date (MTD) flows as of Sept. 30, ETH products have been the most offloaded by institutional investors despite the Merge going through on Sept. 15, with $65.1 million worth of outflows. “Looking back, the Merge was not good for sentiment with outflows totaling US$65m in September. Increased regulatory scrutiny and a strong US Dollar being the likely culprits as the shift to Proof of Stake was executed successfully,” said Butterfill. In contrast, Short BTC funds and BTC investment products saw minor inflows of $15.2 million and $3.2 million MTD. Crypto ETF outflows slowing While there has been limited action of late for crypto investment products tracked by CoinShares, Bloomberg Intelligence has observed a notable trend in crypto exchange-traded funds (ETFs). Related: A crumbling stock market could create profitable opportunities for Bitcoin tradersAccording to Bloomberg Intelligence data, institutional investors offloaded $17.6 million from crypto ETFs during Q3 2022, providing a stark contrast to the “record $683.4 million withdrawn from such funds” in Q2 2022. “The outflows mainly took place in the past two months. In July, investors poured upwards of $200 million into crypto ETFs,” Bloomberg noted in a Sept. 30 article, adding that the decreased outflows was likely due to “narrow fluctuations” in crypto prices during Q3.

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Price analysis 9/30: SPX, DXY, BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT

The United States equities markets have been under a firm bear grip for a large part of the year. The S&P 500 and the Nasdaq Composite have declined for three quarters in a row, a first since 2009. There was no respite in selling in September and the Dow Jones Industrial Average is on track to record its worst September since 2002. These figures outline the kind of carnage that exists in the equities market.Compared to these disappointing figures, Bitcoin (BTC) and select altcoins have not given up much ground in September. This is the first sign that selling could be drying up at lower levels and long-term investors may have started bottom fishing.Daily cryptocurrency market performance. Source: Coin360In the final quarter of the year, investors will continue to focus on the inflation data. Any indication of inflation topping could bring about a sharp recovery in risk assets, but if inflation remains stubbornly high, then a round of sell-offs could follow.Let’s study the charts of the S&P 500 index, the U.S. dollar index (DXY) and the major cryptocurrencies to determine if a recovery is on the cards.SPXThe S&P 500 index (SPX) has been under intense selling pressure for the past few days but the bulls have held their ground. This indicates that bulls are buying the dips near 3,636.SPX daily chart. Source: TradingViewThe first resistance on the upside is 3,737. If bulls thrust the price above this level, the index could rise to the 20-day exponential moving average (3,818). In a downtrend, this is the important level to keep an eye on because a break and close above it will suggest that the bears may be losing their grip. Sharp declines are usually followed by strong rallies. That could carry the index to the downtrend line and then to the 50-day simple moving average (4,012).The bears are likely to have other plans. They will try to extend the downtrend by sinking and sustaining the price below 3,636. If they manage to do that, the index could plummet to 3,500 and later to 3,325.DXYThe U.S. dollar index surged to 114.77 on Sept. 28, which pushed the relative strength index (RSI) into deeply overbought territory. This may have attracted profit-booking by the short-term traders which pulled the price near the 20-day EMA (111).DXY daily chart. Source: TradingViewThe bears will have to yank the price below the 20-day EMA to suggest that the bullish momentum could be weakening. That could clear the path for a possible drop to the 50-day SMA (108). The zone between the 50-day SMA and the uptrend line is likely to witness aggressive buying by the bulls because if they fail to defend the zone, it will indicate that the index may have topped out.On the other hand, if the price turns up from the current level or rebounds off the 20-day EMA, it will indicate that the bulls continue to buy on dips. Buyers will then again attempt to thrust the price above 114.77 and resume the uptrend. The next target objective on the upside is 118. BTC/USDTBitcoin bounced off the strong support at $18,626 on Sept. 28, indicating that the bulls continue to fiercely defend this level. The long tail on the candlestick of the past two days shows that bulls are buying the intraday dips.BTC/USDT daily chart. Source: TradingViewThe bulls pushed the price above the 20-day EMA ($19,602) on Sept. 30 but are struggling to sustain the higher levels. This shows that bears are selling near the 50-day SMA ($20,621). If bulls do not allow the price to drop below the 20-day EMA, the likelihood of a rally to the downtrend line increases. The bears are expected to mount a strong resistance at this level but if bulls clear this hurdle, the BTC/USDT pair could signal a short-term trend change. The pair could then rise to $22,799.Contrary to this assumption, if the price turns down from the current level or the 50-day SMA ($20,625), the pair could again drop to the $18,626 to $17,622 support zone.ETH/USDTEther (ETH) has been declining in a descending channel pattern for the past several days. In the short term, the price has been stuck between $1,250 and $1,410, indicating demand at lower levels but selling near the resistance.ETH/USDT daily chart. Source: TradingViewThe price action inside the range is usually random and volatile. Hence, it is difficult to predict the direction of the breakout with certainty. If the price breaks above $1,410, it will suggest that the bulls have absorbed the supply. That could propel the price to the resistance line of the channel. The bulls will have to overcome this barrier to suggest a potential trend change.On the other hand, if the price turns down and breaks below $1,250, the bears will attempt to cement their advantage by pulling the ETH/USDT pair below the channel. If they succeed, the pair could drop to $1,000.BNB/USDTBinance Coin (BNB) turned up sharply from $266 and broke above the 20-day EMA ($278) on Sept. 28. This indicates that lower levels are attracting strong buying by the bulls.BNB/USDT daily chart. Source: TradingViewThe bulls pushed the price above the resistance line of the descending channel on Sept. 29 but are facing resistance at the 50-day SMA ($288). If bulls do not allow the price to plummet back below the 20-day EMA, it will improve the prospects of a break above the 50-day SMA. The BNB/USDT pair could then rally to $300 and later to $338.On the contrary, if the price turns down and breaks below the 20-day EMA, it will suggest that bears continue to sell at higher levels. The pair could then decline to the strong support at $258.XRP/USDTXRP rebounded off the 20-day EMA ($0.43) on Sept. 28, indicating a change in sentiment from selling on rallies to buying on dips. However, the bears are unlikely to give up as they will try to stall the recovery in the $0.52 to $0.56 zone.XRP/USDT daily chart. Source: TradingViewIf buyers do not give up much ground from the current level, the possibility of a break above the overhead zone increases. A break above $0.56 will signal the resumption of the uptrend. The XRP/USDT pair could then rise to $0.66.Conversely, if the price continues lower, the pair could drop to the breakout level of $0.41. The bulls are likely to defend this level vigorously. If the price rebounds off this level, the pair may enter a range-bound action for a few days.ADA/USDT The long tail on Cardano’s (ADA) Sept. 28 and 29 candlestick shows that the bulls bought at lower levels in an attempt to defend the uptrend line. Although the price rose above the uptrend line on Sept. 29, buyers could not sustain the recovery.ADA/USDT daily chart. Source: TradingViewThe price has again tumbled below the uptrend line on Sept. 30. The downsloping moving averages and the RSI in the negative territory suggest that the path of least resistance is to the downside. If the price breaks below $0.42, the ADA/USDT pair could decline to the crucial support at $0.40. The bulls are expected to defend this level with vigor.Contrarily, if the price turns up from the current level and closes above the uptrend line, it will suggest strong buying at lower levels. The bulls will then again try to push the price above the 20-day EMA ($0.45) and challenge the resistance at the 50-day SMA ($0.47).Related: Bitcoin surges above $20K after 6% BTC rally gains steam ahead of the monthly closeSOL/USDTBuyers are attempting to form a higher low in Solana (SOL). The price rebounded off $31.65 on Sept. 28 and reached the 50-day SMA ($34.70) on Sept. 30.SOL/USDT daily chart. Source: TradingViewThe 20-day EMA ($33.30) is trying to turn up and the RSI is just above the midpoint, suggesting that the bulls are attempting a comeback. If the price breaks and sustains above the 50-day SMA, the bullish momentum could pick up and the SOL/USDT pair could rally to $39. The bears are expected to mount a strong resistance at this level.Alternatively, if the price turns down from the 50-day SMA, the pair could drop to $31.65. A break below this support could sink the pair to $30.DOGE/USDTDogecoin (DOGE) dipped below the 20-day EMA ($0.06) on Sept. 25 and the bears thwarted attempts by the bulls to resume the recovery on Sept. 27.DOGE/USDT daily chart. Source: TradingViewThe 20-day EMA is flattish and the RSI is just below the midpoint, indicating a balance between supply and demand. This balance could tilt in favor of the bears if they sink the price below the support near $0.06. The price could then plunge to $0.05.The bulls will gain the upper hand if they drive and sustain the price above the 50-day SMA ($0.06). The DOGE/USDT pair could then attempt a rally to $0.07 where the bears may again mount a stiff resistance.DOT/USDTPolkadot (DOT) has been trading in a tight range between $6 and $6.64 for the past few days. This indicates a tough battle between the bulls and the bears. DOT/USDT daily chart. Source: TradingViewThe gradually downsloping moving averages and the RSI in the negative territory suggest that bears have a slight edge. If the price drops below $6, the DOT/USDT pair could start the next leg of the downtrend. The pair could then slide to $4.To invalidate this negative bias, bulls will have to push and sustain the price above the 20-day EMA ($6.64). If they do that, it will suggest that the consolidation near the support may have been an accumulation phase. The pair could then rise to the 50-day SMA ($7.26) and later to $8.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.Market data is provided by HitBTC exchange.

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Institutional appetite continues to grow amid bear market — BitMEX CEO

In a recent interview, BitMEX chief executive Alexander Höptner shared his thoughts about institutional investors who, in his view, still have an appetite for crypto and Ethereum.Speaking at the Token2049 conference in Singapore on Sept. 28, the crypto executive told Cointelegraph that there has not been a “single slowdown of institutional push into crypto” during this bear market.He added that institutions and finance industry players typically use bear markets for innovation. There is a lot more pressure to deliver in a bull market, but bear markets offer the luxury of more time.Höptner also commented that adoption for the finance industry has a long horizon which is why institutions will be buying and holding crypto assets while the opposite can currently be said for the retail sector.When asked whether institutions or retail will end the bear market he said that retail is still pulling out whereas institutions are still making a push, before adding:“I think that the institutions are making themselves ready now to provide the services and retail will come back and push it up again.”The BitMEX boss is also convinced that institutions will start piling back into Ethereum now that it has switched to proof-of-stake and satisfies the Environmental, Social, and Governance (ESG) concerns.“Ethereum is the ideal protocol to build stuff on,” he commented before adding “this is the ideal public event to build financial products for ESG conformity,” in reference to the recently deployed Merge.At the moment, ESG conformity is paramount, he said, adding that institutions “can offer products that are really for a wide audience once again while checking one of the boxes that they have for their compliance.”Related: Three-quarters of institutions to use crypto in the three years: RippleThe $3,000 figure was mentioned regarding ETH prices by year-end and Höptner sees this as a possibility especially now that the network is more environmentally friendly and big banks are using it. At the moment, ETH is trading up 3.8% over the past 24 hours at $1,336 so it has a long way to go in the next three months.Last week, Cointelegraph reported that liquid staking products such as Lido’s stETH are more profitable and capital efficient than holding regular ETH. As such, they will increase in popularity while hodling ETH could become obsolete.

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Price analysis 9/28: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB

The S&P 500 fell for six days in a row and made a new year-to-date low on Sept. 27, but Bitcoin (BTC) maintained its outperformance and stayed well above its June low. This could be a positive sign because markets that show strength on the way down are the ones that outperform in the event of a recovery.The United States equities markets rebounded sharply on Sept. 28 after the Bank of England announced a bond-buying program and the U.S. Treasury yields pulled back from multi-year highs. As this occurred, strong buying in Bitcoin took place, but BTC was unable to break above its overhead resistance.Daily cryptocurrency market performance. Source: Coin360A ray of hope for cryptocurrency traders is that October has historically been a strong month for Bitcoin. Barring 2014 and 2018, Bitcoin has managed a positive close in October every year since 2013, according to data from Coinglass. Although history favors a bounce in October, traders should be careful because the macroeconomic situation is unprecedented and remains a challenge.Could Bitcoin and altcoins close September on a strong note? Let’s study the charts of the top 10 cryptocurrencies to find out.BTC/USDTBitcoin soared above the 20-day exponential moving average (EMA) ($19,576) on Sept. 27 but the bulls could not sustain the higher levels. This evaporated all intraday gains. The bears pounced on this opportunity and tried to sink the price below the immediate support of $18,626 on Sept. 28 but the long tail on the day’s candlestick shows strong buying at lower levels.BTC/USDT daily chart. Source: TradingViewThe positive divergence on the relative strength index (RSI) remains intact and is pointing to a possible recovery. If the price breaks and sustains above the 20-day EMA, the likelihood of a rally to the downtrend line increases. The bears are likely to defend this level with vigor.If the price turns down from the downtrend line, the BTC/USDT pair could drop to the 20-day EMA. A bounce off this level will suggest that the sentiment could be changing from selling on rallies to buying on dips. If buyers push the price above the downtrend line, the pair could reach $22,799.To invalidate this bullish bias, the bears will have to sink the price below $18,125. The pair could then retest the June low of $17,622. A break below this support could signal the resumption of the downtrend. The pair could then decline to $14,500.ETH/USDTEther (ETH) turned down sharply from the 20-day EMA ($1,411) on Sept. 27 but rebounded off the $1,262 support on Sept. 28. This shows that bears are selling on rallies and bulls are buying on dips.ETH/USDT daily chart. Source: TradingViewThe ETH/USDT pair is currently stuck between $1,250 and $1,410. If bulls push the price above the overhead resistance, the pair could rally to the resistance line of the descending channel. The bulls will have to surmount this obstacle to suggest a potential trend change. If the price turns down from the current level or the overhead resistance and breaks below the support at $1,250, it will suggest that the selling pressure is building up. This could increase the likelihood of a break below the channel. The pair could then slide to the psychological level of $1,000.BNB/USDTThe bulls nudged BNB above the resistance line of the descending channel pattern on Sept. 27 but they could not go past the 50-day SMA ($287). This attracted heavy selling and the price slipped back below the 20-day EMA ($276).BNB/USDT daily chart. Source: TradingViewThe long tail on the Sept. 28 candlestick shows that the bulls have not given up and may make another attempt to pierce the overhead resistance at the 50-day SMA. If they can pull it off, it will suggest a potential trend change in the short term. The BNB/USDT pair could first move up to $300 and then attempt a sprint to $338.On the other hand, if the recovery turns down from the moving averages, it will suggest that the bears are active at higher levels. The pair could then retest the immediate support at $258.XRP/USDTXRP’s sharp rally to $0.56 has retraced to the breakout level of $0.41. The 61.8% Fibonacci retracement level is close to this level and the 20-day EMA ($0.41) is also nearby. Hence, buyers are likely to defend the level with all their might.XRP/USDT daily chart. Source: TradingViewIf the price rebounds off the current level, the XRP/USDT pair could attempt a rally to $0.47 and then to $0.52. The bears could offer a stiff resistance in this zone. If the price turns down from this zone, the pair could consolidate in a range for a few days.The failure to defend the breakout level of $0.41 will suggest that the recent rally may have been a bear trap. The pair could then drop to the 50-day SMA ($0.37). If this support also cracks, the pair could complete a 100% retracement and tumble to $0.32. ADA/USDT The long wick on Cardano’s (ADA) Sept. 27 candlestick shows that bears continue to sell the recovery to the 20-day EMA ($0.46). The bears are trying to cement their advantage by sustaining the price below the uptrend line.ADA/USDT daily chart. Source: TradingViewIf they manage to do that, the ADA/USDT pair could slide to the crucial support of $0.40. This is an important level for the bulls to defend because if they fail in their endeavor, the pair could resume its downtrend. The pair could then decline to $0.33.On the upside, buyers will have to push the price above the moving averages to suggest that the selling pressure could be reducing. The pair could then rise to the downtrend line. A break above this level could open the doors for a possible recovery to $0.60.SOL/USDTSolana (SOL) attempted to break above the 50-day SMA ($35) on Sept. 27 but the bears were in no mood to let go of their advantage. They sold aggressively and pulled the price back below the 20-day EMA ($33).SOL/USDT daily chart. Source: TradingViewIf the SOL/USDT pair does not give up much ground from the current level, the buyers may again attempt to push the price above the 50-day SMA. The repeated retest of a resistance level tends to weaken it and improves the prospects of a break above it. If the price rises above the 50-day SMA, the pair could rally to $39.The bears may have other plans as they will try to sink the pair to the strong support at $30. If this support collapses, the pair could retest the June low at $26.DOGE/USDTDogecoin’s (DOGE) recovery faded just above the 50-day SMA ($0.07) on Sept. 24 and the price slipped back near the strong support at $0.06 on Sept. 28.DOGE/USDT daily chart. Source: TradingViewThe 20-day EMA ($0.06) is flattening out and the RSI is just below the midpoint, suggesting a balance between supply and demand. If bears want to assert their dominance, they will have to sink and sustain the price below the immediate support near $0.06. That could result in a retest of the June low near $0.05.If bulls want to tilt the advantage in their favor in the near term, they will have to push and sustain the price above the overhead resistance at $0.07. The DOGE/USDT pair could then start its journey to $0.09.Related: Bitcoin holds $19K, but volatility expected as Friday’s $2.2B BTC options expiry approachesDOT/USDTPolkadot’s (DOT) rebound off the strong support at $6 fizzled out near the 20-day EMA ($6.68) on Sept. 27. This indicates that the bears have not given up and are selling on every minor rally.DOT/USDT daily chart. Source: TradingViewThe price is getting squeezed between the 20-day EMA and the support at $6. This uncertainty could resolve with a strong range breakout but it is difficult to predict the direction with certainty. Therefore, it is better to wait for the breakout to happen before taking directional bets.If the price plummets below $6, the DOT/USDT pair could start the next leg of the downtrend and dive to $4. On the contrary, if the price explodes above the 20-day EMA, the pair could climb to the 50-day SMA ($7.37) and then to the overhead resistance at $8.MATIC/USDTPolygon (MATIC) turned down from the 20-day EMA ($0.78) on Sept. 27, indicating that the sentiment remains negative and traders are selling on rallies to resistance levels.MATIC/USDT daily chart. Source: TradingViewThe bears will attempt to strengthen their position by pulling the price below the $0.72 to $0.69 support zone. If this zone gives way, the selling could pick up momentum and the MATIC/USDT pair could drop to $0.62. The downsloping moving averages and the RSI in the negative territory indicate a minor advantage to bears.Alternatively, if the price rebounds off the support zone, the bulls will again try to drive the pair above the 20-day EMA. If they succeed, the pair could rise to the 50-day SMA ($0.84).SHIB/USDTShiba Inu (SHIB) has been trading near the 20-day EMA ($0.000011) for the past few days, indicating that the bulls are not dumping their positions as they anticipate the price to move higher.SHIB/USDT daily chart. Source: TradingViewIf bulls propel the price above the 20-day EMA, the SHIB/USDT pair could rise to the overhead resistance at $0.000014. The bears may mount a strong resistance at this level but if bulls overcome this barrier, the pair could start its march toward $0.000018.This positive view could invalidate in the near term if the price turns down from the current level and breaks below the support at $0.000010. The pair could then drop toward the important support at $0.000007.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.Market data is provided by HitBTC exchange.

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Christie’s moves on-chain with NFT auction platform on Ethereum

After a series of successful high-priced nonfungible token (NFT) sales, Christie’s has launched its own dedicated NFT “on-chain auction platform,” allowing auctions to be carried out fully on-chain on the Ethereum network. The 256-year-old British auction giant, which is also the second-largest auction house in the world by fine-art auction revenue, said its “Christie’s 3.0” allows for NFT auctions to be conducted entirely on the ETH network “from start to finish.” “All transactions, including post-sale, will be automatically recorded on the blockchain.”In its past NFT auctions, the payments from the winning bidder were not always conducted on a blockchain, but the creation of Christie’s marketplace allows transactions to occur in a fashion much like the popular marketplace OpenSea, allowing for payments to be made in Ether (ETH). Christie’s said the new marketplace was developed in partnership with NFT smart contract development startup Manifold, metaverse development firm Spatial and blockchain analytics firm Chainalysis.Christie’s 3.0 allows for auctions to be carried out on the Ethereum blockchain network from start to finish. All transactions, including post-sale, will be automatically recorded on the blockchain. (2/4)— Christie’s (@ChristiesInc) September 27, 2022The announcement was paired with an inaugural launch of only one project exclusive to the new marketplace by artist Diana Sinclair, featuring just nine NFTs which can be viewed in an online virtual gallery built by Spatial.Christie’s has seen major success with NFT auctions in the past, such as Beeple’s “Everydays – The First 5000 Days,” which was minted exclusively for the auction house selling for a record $69.3 million in Mar. 2021, becoming one of the most expensive NFTs ever sold.At the time, the sale of the NFT was conducted in partnership with NFT marketplace MakersPlace.The firm also facilitated the auction of nine CryptoPunks in May 2021 with the winning bid coming in at almost $17 million.Related: Beyond the NFT hype: The need for reimagining digital art’s value propositionChristie’s Web3 interest has moved outside of NFT auctions, in July it launched a venture fund aimed at supporting “art-related financial products and solutions” in Web3 with its initial investment going to LayerZero Labs, a company building decentralized applications compatible with multiple blockchains.Rival auction house Sotheby’s has taken a similar interest in Web3 and NFTs, launching its own metaverse in Oct. 2021 and having its share of high-priced NFT sales also.

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Tax on income you never earned? It’s possible after Ethereum’s Merge

After much buildup and preparation, the Ethereum Merge went smoothly this month. The next test will come during tax season. Cryptocurrency forks, such as Bitcoin Cash, have created headaches for investors and accountants alike in the past.While there has been progress, the United States Internal Revenue Service rules still weren’t ready for something like the Ethereum network upgrade. Nonetheless, there seems to be an interpretation of IRS rules that tax professionals and taxpayers can adopt to achieve simplicity and avoid unexpected tax bills.How Bitcoin Cash broke 2017 tax returnsBecause of a disagreement over block size, Bitcoin forked in 2017. Everyone who held Bitcoin received an equal amount of the new forked currency, Bitcoin Cash (BCH). But when they received it caused some issues.Bitcoin Cash was first issued in the fall but didn’t hit Coinbase or other major exchanges until December. By that time, it had gone up significantly in value. For tax purposes, receiving free coins is income. Suddenly, many investors had a lot of income to claim that they hadn’t anticipated.Related: Get ready for a swarm of incompetent IRS agents in 2023Many crypto-savvy accountants advised clients to claim the value of Bitcoin Cash when it was issued, not when it finally arrived in their exchange accounts. No IRS guideline explicitly said this was OK — in fact, it runs contrary to the accounting principle of dominion and control — but it seemed like the only reasonable way to handle the issue.Airdropped proof-of-work ETH is another gray areaAs a result of the problems with reporting income from Bitcoin Cash, the IRS issued Revenue Ruling 2019-24 to address the treatment of blockchain forks. According to the ruling, forks that result in the airdrop of a new currency to an existing holder are taxable accessions to wealth. While not the usage of “airdrop” most investors are used to, the IRS uses the term to describe when the holder of an existing cryptocurrency receives a new currency from a fork.The potential confusion with the Ethereum upgrade is that assigning the forked and original currency based on the ruling alone is unclear. One can easily see how the IRS could take the position that, following the upgrade, the Ether (ETH) tokens held in wallets and exchanges across the world is a new coin, and that Ethereum proof-of-work (PoW) — which continues on the legacy network — is the original.While the argument makes logical sense, this position would also result in chaos. Every U.S. taxpayer who held ETH — or assets such as nonfungible tokens (NFTs) based on Ethereum smart contracts — on Sept. 15 would have to claim its value as ordinary income. Though it’s using the old technology, Ethereum PoW is clearly the “new” coin.The assets of the investor haven’t changed — rather, the underlying consensus mechanism was upgraded. Plus, unlike Bitcoin Cash, which stemmed from a disagreement with two legitimate sides, the Ethereum upgrade had widespread support and was only opposed by self-interested miners.Related: Biden is hiring 87,000 new IRS agents — And they’re coming for youAnother example would be when EOS froze the Ethereum-based EOS token and moved the holders to the EOS mainnet. The continuation of the coin on the EOS network was not viewed as taxable, as rights were simply teleported to another chain with the same ticker symbol. (Crypto exchange traders probably didn’t even notice.)Is the “new coin” always the lesser adopted coin? Is a coin its technology or its community? The IRS likely won’t rule on this before Tax Day in April, so taxpayers and advisors will just have to make the call. But it seems like the choice is clear.Additional considerations for investors and developersTax-savvy Ethereum holders may want to wait and see if Ethereum PoW is adopted before they attempt to access the coins. Accepting them will guarantee taxable income without leaving room for an argument that the fork is a half-hearted fork/farce/scam, like many of the derivative Bitcoin forks in 2017–2018, which had thinly traded values on remote exchanges. If the value of Ethereum PoW drops before an investor sells, it can mean a tax bill that exceeds the value of the asset. (Bitcoin Cash dropped from over $2,500 in value to under $100 in 2018, save for a short-lived spike in 2021). On the other hand, Grayscale Ethereum Trust’s Sept. 16 press release indicates it will claim, sell or distribute proceeds related to the ETH POW coin, so there may be some value to report at the end of the day.Related: Post-Merge ETH has become obsoleteIt takes some doing to claim Ethereum POW that is worth less than 1% of the corresponding quantity of Ethereum. Early adopters often have an advantage in crypto, but a fork is one case where patience could be prudent.Any crypto developers considering a fork should bear in mind that forks always create tax headaches, the severity of which varies based on the rationale for and execution of the fork. Assuming the IRS follows the lead of the crypto tax community again, the Ethereum upgrade provides an example of how to do it right.Justin Wilcox is a partner at the Connecticut accounting and advisory firm Fiondella, Milone & LaSaracina. He founded the firm’s cryptocurrency practice in 2018, providing tax and advisory services to Web3 organizations and crypto investors. He mines cryptocurrencies like DOGE (though he still supported the Ethereum Merge). He holds various cryptocurrencies and NFTs, including coins mentioned in this article.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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7 Ethereum developers would like to sell you on the Merge

Since the founding of Ethereum in 2015, an animating question that plagued the community was answered at exactly 06:42:59 UTC on Thursday, Sept. 15, 2022.Ethereum, the technological layer where a new class of applications and self-organizing organizations are being built, eliminated its reliance on an energy-intensive consensus mechanism called proof-of-work (PoW) to a more sustainable and secure consensus mechanism called proof-of-stake (PoS).In what has been described as one of the most significant milestones in blockchain history, the Merge has set the template for how Ethereum will continue to be the most powerful, most used, most credibly neutral, and most energy-efficient blockchain network globally.Related: Biden is hiring 87,000 new IRS agents — And they’re coming for youThe Merge is one of those historical moments where decades from now, people are going to remember what they were doing, where and with whom, whether they were part of the 41,000+ people who tuned in as blocks finalized or all the physical gatherings worldwide aimed to celebrate the occasion, which also saw Ethereum go from somewhat random Ethereum block times to predictable 12-second intervals.More than 120 developers from all corners of the globe, connected only by their Wi-Fi signal and a passion for developing what they believe is the future of the internet, have come together to design and implement the Ethereum Merge. Their collective action to enact what is likely the largest decarbonization of any industry in history provides a compelling model that future industry and social overhauls might adopt.Diversity and openness on the blockchainOne ethos that runs throughout the Ethereum ecosystem is its diversity and openness. As a result of the Merge, Ethereum has laid the foundation for a successful transition from a monolithic blockchain to a more modular blockchain that incorporates several execution layer clients, consensus layer clients and layer-2 networks. This robust architecture ensures a healthy and scalable network where rewards for participation are more equitably distributed.Related: The market isn’t surging anytime soon — So get used to dark timesPoS not only democratizes network participation by requiring lower resource requirements for validator nodes but is also constructed such that economies of scale do not apply in the same way they do for PoW mining. While there will still be players with more nodes, running one will be less compute-intensive, and each node will have an equal chance at rewards. In addition to a very diverse system, the technical barriers to scalability are removed. Unlike PoW, with PoS, Ethereum can efficiently partition data processing and reach scale and throughput developers expect from a database or cloud service. This makes Ethereum more egalitarian and radically evolved to support the next generation of Web3 creators and developers.A greener EthereumEthereum is the first time in history that a technology of its scale has reduced its emissions through innovation and redesign, not carbon credit offsets.The location of core Ethereum developers leading up to the Merge. Source: ConsenSysEthereum, in the past, has sacrificed sustainability and scalability due to its chosen security mechanism. This tradeoff was at odds with the adoption levels the chain has seen. However, with the shift to PoS, Ethereum has become the most popular carbon-friendly blockchain, reducing its network’s electricity consumption and carbon footprint by over 99.988% and 99.992%, respectively.With a more sustainable Ethereum, artists no longer need to contend with ethical decisions around the energy usage of PoW systems or even offset their nonfungible tokens (NFTs) with carbon credits. Ethereum is now the most sustainable home for the NFT revolution to thrive. An improved security model for protecting blockchainsOne overlooked feature in the security guarantees that proof-of-stake offers is that 51% attacks are exponentially more costly for anyone attempting them than on PoW. For example, if someone has the means to perform a 51% attack on a PoW network, these attacks can be continued even after a soft fork.Related: Post-Merge ETH has become obsoleteBut in Ethereum PoW, baked into the code is something called “slashing.” With slashing, when a validator is caught acting provably destructively, the validator is forced to exit, penalizing some or all of its financial stake. The result is that an attacker cannot attack the chain without incurring a significant financial loss. PoW does not have an equally impactful in-protocol financial disincentive.The futureToday, more than ever, there is a heightened sense of disempowerment. People feel disconnected and powerless over the decisions that govern their lives. Time and time again, actors enshrined with responsibility have failed; trust has been broken, and there seems to be no way forward. Ethereum promises to flip the power dynamics and empower the individual by allowing any individual, enterprise or government to run validators, trustlessly build applications or coordinate themselves; it enables a sense of ownership, confidence and trust that is harder to achieve in systems that are widely adopted in society today. The Merge strongly signals that Ethereum is for everyone to sustainably create value without sacrificing security, energy efficiency and democratized access.We hope that this example of collaboration of hundreds of developers from all over the world, often working voluntarily, to improve a public good could inspire other industries.Ben Edgington advises on Eth2 across ConsenSys. Current product owner for Teku, an Ethereum 2.0 client primarily designed for enterprise and institutional stakers, Ben was head of engineering for information systems at Hitachi Europe prior to joining ConsenSys. He holds a B.A. (Hons), M.A., M.Sc. and M.Maths (all in Mathematics) from the University of Cambridge.Hsiao-Wei Wang has been working on Ethereum consensus protocol R&D at the Ethereum Foundation Research Team since mid-2017. Her contributions to the Merge include consensus research, specifications and memes development.Lion Dapplion has been involved in Ethereum since early 2018, building FOSS at the infrastructure layer with DAppNode. His contribution to the Merge has been leading Lodestar the Typescript consensus client and pushing light clients at the consensus layer, plus other standardizing initiatives.Marius van der Wijden is a software developer working with the Ethereum Foundation on go-Ethereum since 2020. Before that, he worked on scalability solutions (state channels) for blockchains. He wrote parts of the implementation of the Merge in go-Ethereum and played a role in coordinating testing efforts. He also tried to get the community involved with the #TestingTheMerge initiative.Mikhail Kalinin has been working full-time on Ethereum since 2015, initially as a core developer on an early mainnet client, and for the last three years in Ethereum research and development. He leads the TXRX research team at ConsenSys. Developing and delivering the Merge on the Ethereum mainnet has been his main focus for the last two years. He is currently looking for a new area of Ethereum protocol development where he can make an impact.Parithosh Jayanth is from Bangalore, India and moved to Germany in 2016. He joined the Ethereum Foundation in 2020, aspiring to shape Ethereum upgrades because he was intrigued by its research challenges. He was responsible for setting up, coordinating and debugging test networks.Terence Tsao of Prysmatic Labs works on Prysm, a consensus layer client implementation written in Go. He was one of the earlier implementors for the Merge who began experimenting with consensus-layer code and execution-engine API so it could drive consensus for the execution layer client.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Price analysis 9/26: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB

The United Kingdom is in focus following the British pound’s fall to a new all-time low against the United States dollar. The sell-off was triggered by the aggressive tax cuts announced by Prime Minister Liz Truss’s government. The 10-year gilt yields have soared by 131 basis points in September, on track for its biggest monthly increase since 1957, according to Reuters.The currency crisis and the soaring U.S dollar index (DXY) may not be good news for U.S. equities and the cryptocurrency markets. A ray of hope for Bitcoin (BTC) investors is that the pace of decline has slowed down in the past few days and the June low has not yet been re-tested. Daily cryptocurrency market performance. Source: Coin360That could be because Bitcoin’s long-term investors do not seem to be panicking. Data from on-chain analytics firm Glassnode shows that Bitcoin’s Coin Days Destroyed (CDD) metric, which gives more weightage to coins dormant for a long time, hit a new low. This indicates that coins held for the long-term “are the most dormant they have ever been.”Could Bitcoin and altcoins continue their short-term outperformance? Let’s study the charts of the top-10 cryptocurrencies to find out.BTC/USDTThe bulls continue to defend the $18,626 to $17,622 support zone with all their might. This is a positive sign as it shows that buyers are accumulating on dips to the support zone.BTC/USDT daily chart. Source: TradingViewThe price rebounded off the support zone on Sept. 26 and the bulls will attempt to push the BTC/USDT pair above the 20-day exponential moving average (EMA) ($19,653). A close above this overhead resistance will be the first indication of strength. The pair could then rise to the 50-day simple moving average (SMA) ($20,960). The bears are likely to pose a strong challenge in the zone between the 50-day SMA and $22,799. Buyers will have to thrust the price above this zone to clear the path for a possible rally to $25,211. This positive view could be invalidated if the price turns down from the moving averages and breaks below $17,622. That could signal the start of the next leg of the downtrend.ETH/USDTEther (ETH) has been trading inside a tight range of $1,262 and $1,360 for the past three days. This suggests indecision among the bulls and the bears.ETH/USDT daily chart. Source: TradingViewIf bulls thrust the price above $1,360, the ETH/USDT pair could rally to the 20-day EMA ($1,430). This is an important level to watch out for because a break above it will suggest that the bears may be losing their grip. The pair could then rally to the resistance line of the descending channel.Contrarily, if the price turns down from $1,360 or the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then again try to sink the price to the support line of the channel.BNB/USDTBuyers pushed BNB above the 20-day EMA ($276) on Sept. 24 and 25 but they could not sustain the higher levels. The price formed a Doji candlestick pattern on Sept. 25, indicating that traders are undecided about the next move.BNB/USDT daily chart. Source: TradingViewHowever, as the price has been trading close to the 20-day EMA for the past few days, it improves the prospects of a rally to the resistance line of the descending channel. This level may witness aggressive selling by the bears but if bulls do not allow the price to break below the 20-day EMA, the BNB/USDT could break above the 50-day SMA ($289). Such a move could suggest a potential trend change in the near term.If the price turns down from the 20-day EMA or the resistance line of the channel, the bears will try to pull the pair to the strong support at $258.XRP/USDTXRP surged to $0.56 on Sept. 23 when profit-booking set in. The bulls tried to resume the up-move on Sept. 25 but the long wick on the candlestick shows selling on intraday rallies.XRP/USDT daily chart. Source: TradingViewThe XRP/USDT pair could next drop to the 50% Fibonacci retracement level of $0.44. If the price rebounds off this level, the bulls will make one more attempt to push the price above $0.56 and resume the up-move to $0.66.Conversely, if the price breaks below $0.44, the pair could drop to the breakout level of $0.41. The 61.8% Fibonacci retracement level is also near $0.41; hence, the bulls are likely to defend this support aggressively. ADA/USDT ADA soared above the 20-day EMA ($0.46) on Sept. 23 but the bulls could not pierce the 50-day SMA ($0.48). The long wick on the day’s candlestick suggests that bears are active at higher levels.ADA/USDT daily chart. Source: TradingViewBuyers again tried to push the price back above the 20-day EMA on Sept. 24 and 25 but the bears held their ground. That has pulled the price to the uptrend line. This is an important level for the bulls to defend because if they fail to do that, the ADA/USDT pair could slump to the vital support at $0.40.Conversely, if the price rebounds off the uptrend line, the bulls will again try to drive the pair above the downtrend line. If they manage to do that, the pair could jump to $0.52.SOL/USDTSolana (SOL) broke and closed above the 20-day EMA ($33) on Sept. 23 but the bulls could not build upon this strength. The failure to push the price above the 50-day SMA ($35) attracted selling on Sept. 24. That pulled the price back below the 20-day EMA on Sept. 25.SOL/USDT daily chart. Source: TradingViewThe bulls have not yet given up and are trying to push the price back above the 20-day EMA. If they succeed, the SOL/USDT pair could rally to the 50-day SMA. The bulls will have to surpass this obstacle to set the stage for a possible rally to $39.Contrary to this assumption, if the price turns down from the moving averages, it will suggest that bears are in no mood to relent. That could heighten the risk of a break below $30. If that happens, the pair could retest the important support at $26.DOGE/USDTDogecoin (DOGE) broke and closed above the 20-day EMA ($0.06) on Sept. 23, which is the first sign that the selling pressure could be reducing. DOGE/USDT daily chart. Source: TradingViewBuyers maintained their momentum and propelled the price above the 50-day SMA ($0.07) on Sept. 24 but could not sustain the higher levels. This shows that the bears have not yet given up and are selling on rallies.The price dipped back to the 20-day EMA on Sept. 25 but a minor positive is that the bulls are trying to defend this level. If bulls flip this level into support, the pair could rally to $0.08. Alternatively, if the price continues lower and breaks below the strong support, the DOGE/USDT pair could retest the June low at $0.05.Related: Cardano bulls run out of steam after Vasil hard fork — 40% ADA price crash in playDOT/USDTPolkadot (DOT) once again bounced off the critical support at $6 on Sept. 26, suggesting that bulls are defending this level aggressively. The price could jump to the 20-day EMA ($6.74) where the bears will try to stall the recovery.DOT/USDT daily chart. Source: TradingViewIf the price turns down from the 20-day EMA, it will increase the likelihood of a break below the support at $6. If that happens, the selling could pick up momentum and the DOT/USDT pair could resume the downtrend. The pair could then slide to $4.If bulls want to prevent this fall, they will have to quickly push and sustain the price above the 20-day EMA. The pair could then rally to the overhead resistance zone between the 50-day SMA ($7.48) and $8. A break and close above the zone could open the doors for a possible rally to $9.17 and then $10. MATIC/USDTPolygon’s (MATIC) relief rally stalled near the 20-day EMA ($0.79) on Sept. 23, indicating that bears continue to sell on minor rallies. The price has dipped to the strong support at $0.72 where buyers are likely to step in to arrest the decline.MATIC/USDT daily chart. Source: TradingViewA strong bounce off the current level will suggest accumulation near $0.72. The bulls will then make another attempt to drive the price above the 20-day EMA. If they can pull it off, the MATIC/USDT pair could climb to the 50-day SMA ($0.84) and then to $0.94.Instead, if the price turns down and breaks below the $0.72 to $0.69 support zone, it will indicate that the $0.72 to $1.05 range has resolved to the downside. That could pull the pair down to $0.62 and after that to $0.52.SHIB/USDTThe bulls propelled Shiba Inu (SHIB) above the 20-day EMA ($0.000011) on Sept. 24 but the long wick on the candlestick shows that bears continue to sell at higher levels.SHIB/USDT daily chart. Source: TradingViewThe bears will attempt to sink the price to the immediate support at $0.000010. This level has acted as strong support previously; hence, the bulls are likely to defend it with vigor. Buyers will have to push the price above the moving averages to suggest that the selling pressure could be reducing. The SHIB/USDT pair could then rise to $0.000014 where the bears may again mount a strong resistance. If bulls overcome this barrier, the pair could rise to $0.000018.On the downside, a break below $0.000010 could intensify selling and the pair could slide to the crucial support at $0.000007.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.Market data is provided by HitBTC exchange.

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