Ethereum Holding Up Well Amid Market Bloodbath — Price Analysis

  • LTF (Low timeframe) trend: A relief rally becoming more likely
  • MTF trend: Downtrend has been extended, bottoms must be found
  • HTF trend: Still intact but suffering

Ethereum (ETH), along with Bitcoin (BTC), took a massive tumble yesterday after a classic fakeout-dump precluded a possible break from the MTF downtrend. However, the ETH/Bitcoin chart is holding up pretty well with strong resilience, and we may see Ethereum start outperforming Bitcoin in this extended downtrend.

We start on the daily ETH/Bitcoin chart, and see that yesterday’s blistering selloff saw a very strong counter-rally off of the .382 Fibonacci retracement level (red line). But given the tenor of the market, we may have to see another leg down on this chart in order to find a bottom.

Holding above capitulation line would be exceptionalETH chart by TradingView

However, if Ethereum can maintain above the very critical ‘capitulation line’ at ₿0.0233, we can still maintain a quite bullish long term outlook for ETH in 2020.

On the weekly ETH/Bitcoin chart, we see that ETH is holding in an important support from late-2018/2019. It took a very long term and many battles to break this support level to the downside, and hopefully having regained it, ETH bulls won’t let it slip without an equally intense fight.

Holding so far in thick supportETH chart by TradingView

We also notice that, despite the brutal weekend, the EMAs are still contracting bullish and that the histogram really doesn’t look bad at all, with a nearly plateauing profile.

ETH/Dollar has, of course, taken a considerably worse hit as it is more tied with Bitcoin’s dollar price. Ethereum has carved clean through the 55 EMA and is not likely to regain it soon, and will likely need to find a solid base of support and consolidation.

$186 is a promising levelETH chart by TradingView

We see the $186 area is a likely bottom for price around here, being the location of a significant inflection level and of the ‘golden pocket’ retracement zone. If we do see another aftershock-type selloff, this is a decent buy target.

So there are some reasons here to be optimistic on Ethereum. It has been heavily outperforming Bitcoin lately, and is coping pretty well with the weekend’s intense market violence. Sitting in Ethereum rather than Bitcoin might prove to be a wise move in the coming months.

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

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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, 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.