Ethereum Dumps Double with BTC, but Holding Critical Levels - Price Analysis

  • Short term trend: Still seems down, another leg down perhaps needed
  • Long term trend: USD downtrend likely to end soon

Ethereum (ETH) has again followed Bitcoin’s (BTC) lead, by following Bitcoin down for another dip. This is true even for the ETH/BTC pairing, resulting in the typical double-damage on the USD pairing. But the leading altcoin is holding some critical levels, and could still be in a larger-term uptrend.

We start with the ETH/BTC daily chart for a larger view. Here we see a support from summer holding the altcoin, as well as the 55 EMA. ETH has been uptrending here since September, after breaking a price level that had held for years, around ₿0.0237

Will support hold?ETH chart by TradingView

A possible Elliott wave impulse count (1-5) might signify that the recent downside is a normal an expected correction. According to this interpretation, Ethereum could retrace quite a bit further before canceling out this large uptrend started in September.

On the daily ETH/USD chart, however, we see that Ethereum has been downtrending more consistently than ETH/BTC, stuck under all the EMAs. What’s more, it definitely looks as if the altcoin could dive a little deeper on this chart if it wants to.

Looking bearishETH chart by TradingView

The RSI here broke an uptrend earlier in the month, and has plenty of room left before reaching oversold conditions. The histogram -- after yesterday’s dump -- is arching down aggressively. However, there is a well-worn block of support here, down to as far as $150, so ETH has a strong chance of holding with this block.

And within this block is the $158 zone, which marks the breakout level for ETH in the first quarter of the year (below). This has actually already been tested and held, and unless Ethereum is in a multi-year downtrend that didn’t actually finish in 2018, we are unlikely to see this break.

$155-160 very important levelETH price by TradingView

Finally, moving to the much shorter hourly ETH/USD chart, we see that oversold conditions were quickly reached on the sharp selloff. A weak bounce and rejection already at the 8 EMA, along with weak buy volume, suggest that another leg down is possible.

Looking shaky in the short termETH price by TradingView

The histogram here was uptrending flat, but at time of writing seems to be starting an arch down.

Overall, there are reasons to get excited about Ethereum in the longer term. The USD pairing is likely at the bottom of its chart, and the BTC pairing is likely still in a large uptrend. On the short term, however, we see plenty of weakness. Adding to this, with Bitcoin’s shakiness -- and Ethereum’s recent characteristic of following Bitcoin’s direction even on the BTC pairing -- Ethereum most be treated with caution for longing.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Featured Image Credit: Photo via Pixabay.com

Ethereum Was Behind 85% of Dapps' $12 Billion Volume in Q2 2020

The total transaction volumes of decentralized applications (dapps) in the cryptocurrency space hit $12 billion in the second quarter of this year, rising by $4.5 billion compared to the first quarter. Etheruem dapps accounted for 85% of the volume.

According to DappRadar’s Industry Review report, there are more than 70,000 active wallets across 13 different blockchains interacting with the cryptocurrency space. The top blockchains were EOS, TRON, and Ethereum, with the latter representing $10.2 billion of the $12 billion volume seen in Q2.

Ethereum’s large transaction volume was partly fuelled by Compound and the launch of the COMP token, which led to a “yield farming” trend, in which users were interacting with the protocol as much as possible to receive COMP tokens. Compound saw $1.2 billion move through it.

The yield farming trend saw Ethereum gas prices and transaction fees increase, which according to the report did not stop Ethereum dapps from thriving in general. It did, however, contribute to an 80% drop quarter-on-quarter for ETH gaming dapps, as high gas prices are “killing” their activities on the cryptocurrency’s network.

Despite Ethereum’s growth, EOS and TRON (TRX) dapps have also seen their activity increase in the second quarter of the year. According to the report in only three months, TRON’s transaction volumes on decentralized applications surged by over 17,200%.

The rise was largely attributed to Oikos.cash, a TRON-based version of the Compound lending protocol.  While TRON’s DeFi growth has been notably, DappRadar pointed out that most dapps on its blockchain are still in the “gambling” and “high risk” categories.

The EOS blockchain has still been enduring the effects of the EIDOS token airdrop, which put the network into “congestion mode.” The airdrop clogged the network and as a result, from 2019 to 2020 wallet activity on decentralized applications dropped 53%.

So far this year, $1.9 billion have been transacted on decentralized applications using the EOS blockchain, thanks to two dapps: Crypto Dynasty and Upland. DappRadar’s report also shows that two other blockchains are growing thanks to gambling dapps: WAX and ThunderCore.

Featured image via Pixabay.