Ethereum (ETH) Technical Analysis: Ethereum (ETH) Drops 4% Week Over Week

Regardless of this flat price action, chances are we might see a short term price recovery only if buyers drive prices above Aug 17 highs of $330 or there about. In the meantime though, Ethereum (ETH) is down two percent in the last day as the community receives with great expectation IE’s Bakkt and their effort to make crypto mainstream.

From the News

Earlier this month, International Exchange, the company which owns The New York Stock Exchange announced that they will be forming a new company Bakkt with the sole purpose of creating the lacking regulatory framework that facilitates fast price discovery as well as creating the infrastructure required for making trading, storing and spending of several high liquid cryptocurrencies as simple as possible.

It’s often the adoption part that is challenging when a new product is trying to break into the mainstream but once it does, it’s usually a new cycle of value creation that benefit the first investors. Bakkt consists of several traditional market leaders as Microsoft, Alan Howard, Galaxy Digital and several blockchain centric venture Capital firms and as they plan to launch on November this year, the group is receiving overwhelming support from the crypto community with some comparing their effort to those of early drivers of internet adoption as ICANN.

In a bid to quash rumors that has been in the crypto world, Vitalik took to twitter explaining the genesis and objectives of Casper Labs, how the network plans to deal with long range attacks and how Friendly Finality Gadget (FFG) had better inbuilt designs that complies with other blockchains that adds finality guarantees.

Technical Analysis

Weekly Chart

Price wise, bears are in charge and after shedding four percent in the last week, it appears as if Ethereum sellers are syncing well with that break below pattern of week ending Aug 12.

Notice that that bearish engulfing candlestick anchors our current price projection and as per our previous Ethereum (ETH) trade plans, sellers are in charge and despite recent attempts of higher highs, it will be a tall order for buyers to muster enough momentum and print prices above $400.

In any case, last week’s bear candlestick confirms the break out pattern and as long as prices are not trading below last week’s highs at $330, we suggest taking shorts on every high in lower time frames.

Daily Chart

Though we had a convincing three bar reversal pattern by close of Aug 17 that bull reversal pattern is yet to be confirmed and in real sense prices are oscillating within Aug 17 bullish engulfing high lows.

Technically, we shall retain a bearish projection a long as prices are trading below $400 and as it stands, today close shall define our short term trade trajectory.

If today’s candlestick close as a bear, then we shall take shorts from tomorrow with stops at $300 and first targets at $200.

However, should bulls drive prices higher then we recommend taking small size longs with stops at $280 and first targets at $400.

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

Source: Newsbtc


Major Crypto Exchanges Collaborate to Create Self-Regulatory Organization

Four major cryptocurrency exchanges are teaming up develop a self-regulatory organization (SRO) that would work cohesively to develop rules, regulations, and to set new regulatory standards for the cryptocurrency and blockchain industry.

News of the potential SRO comes several months after the idea was first proposed by Cameron Winklevoss, co-founder of the Gemini exchange.

The self-regulatory organization is called the Virtual Commodity Association Working Group. It will be working to draft, and lobby, sets of regulatory measures that would reduce the amount of fraud and scams within the industry.

It would also help world governments to implement common sense and “do no harm” regulation to the crypto industry. If taken seriously by regulatory authorities, the group could become a powerful SRO group that could change the cryptocurrency markets for the better.

Self-Regulatory Organization Long in the Works

The four exchanges that have signed onto the Virtual Commodity Association Working Group are Gemini, Bittrex, Bitstamp, and bitFlyer USA.

Although unconfirmed, it is likely that the Winklevoss brothers, the two men at the head of the Gemini exchange, are the ones behind the creation of this group, as this has been a long-held idea by the brothers.

The news of the group comes five months after Cameron Winklevoss explained a very similar concept in a personal Medium post, where he outlined his idea, citing the proposed group’s purpose as:

“Foster financially sound, responsible, and innovative virtual commodity markets through a system of industry sponsored standards, sound practices, and oversight that promotes price discovery, efficiency, and transparency…Incentivize the detection and deterrence of manipulative and fraudulent acts and practices, including partnering with regulators and particularly the CFTC to share or refer information, as appropriate.”

The concept is not unconventional, as it is modeled off of similar organizations that exist within equities and securities markets. These groups are very similar conceptually in that they develop industry standards and work closely with regulators in order to reduce fraudulent practices while still allowing for innovation.

While speaking to Business Insider, the founder of CoinRoutes, Dave Weisberger, discussed the new group, saying:

“It is a great sign that multiple competing exchanges have recognized that working together, to improve the overall industry, in their mutual self-interest…Institutions are genuinely skeptical today over the fairness and data quality in the crypto market. At CoinRoutes, even though we help our clients consolidate the data, there is a lot of concern over the quality of the exchange data we aggregate as well as underlying manipulation. An industry SRO is a great start towards ameliorating those concerns.”

Winklevoss Twins Continue Moving Forward Despite Several Setbacks 

The development of a self-regulatory group is a win for the Winklevoss twins, who have been hit hard by several setbacks over the course of 2018.

Following the bull run at the end of 2017, Gemini exchange has seen declining trading volume ever since.  The brothers also have seen a drop in value of their personal cryptocurrency holdings, which supposedly account for a large portion of their net worth.

The worst setback for the brothers, however, was the denial of their exchange’s proposed ETF by the U.S. Securities and Exchange (SEC). This denial not only closed the chances for Gemini becoming the first issuer of a Bitcoin ETF, but it also negatively affected market sentiment, leading to a brief market sell-off.

Photo via Shutterstock.

Source: Newsbtc


Bitcoin Circles $6500 as Volatility Drops to 14-Month Low, Altcoins Slump

Bitcoin (BTC) price held steady Monday, August 20, posting small gains to circle $6,500 while altcoins drop further.

Data from Cointelegraph’s price tracker and Coin360 depict a sixth day of relatively stable activity for Bitcoin, which has remained range bound between $6,250 and $6,600 since August 14.

Market visualization from Coin360

Market visualization from Coin360

Contrasting with volatile conditions witnessed through the second half of July and first weeks of August, the newfound stability has not gone unnoticed, analytics resource Diar revealing Monday that volatility has dropped to a fourteen-month low.

At press time, BTC/USD traded around $6,430 across major exchanges, corresponding to practically flat daily activity, while investors remain down around 15 percent over the past 30 days.

Bitcoin’s 7-day price chart

Bitcoin’s 7-day price chart. Source: Cointelegraph Bitcoin Price index

The situation on altcoin markets remains precarious Monday. Ethereum (ETH), which has seen considerably heavier losses than Bitcoin in recent weeks, dropped 4 percent in the 24 hours to press time, to again lose support at $300.

Ethereum’s 7-day price chart

Ethereum’s 7-day price chart. Source: Cointelegraph Ethereum Price Index

Having reached lows not seen since September 2017, ETH/USD has only marginally recovered, echoing similar woes among the major altcoin assets.

An exception to that rule this week has come in the form of Tezos (XTZ), which shot up 13 percent on news it would trade on major South Korean exchange platform Coinone.

Bitcoin image via Shutterstock.

Source: Cointelegraph