Holpop News

On Dec. 8, optimism was reignited as Ether rallied 28.5 % in four days to retest the $4,400 support level. The downtrend continued soon after, with the $2,900 low on January 10 being the lowest ETH price in 102 days. This low was a 40% drop from the all-time high of $4,870, prompting traders to wonder if a bear market had begun.

The price of Ether (ETH) momentarily exceeded $4,760 today, thrilling investors and reminding the rest of the world that the altcoin is only 2.2 percent off its all-time high of $4,870 set 20 days ago. While the spot price behavior is fascinating, let’s take a look at what’s going on in Ether’s futures markets. While it is possible to draw a descending channel that shows support at $3,960, today’s 5.4% positive move seems decoupled from Bitcoin’s (BTC) negative performance. Neutral markets have a positive financing rate of 0 to 0.03 percent, which is equivalent to 0.6 percent every week. Longs are paying, according to data, while retail traders have been mainly neutral since Nov. 4, with the latest rise above 0.07 percent being on Oct. 21.

The Ethereum network implemented the London hard fork update about 3 months ago, which included a mechanism (EIP-1559) that modified Ethereum’s fee rate to a new scheme that renders the cryptocurrency ether deflationary. Since then, 1 million ether has been burnt, which is about equal to $3.8 billion in Ethereum at today’s exchange rates. The second-largest crypto asset in terms of market capitalization, Ethereum (ETH) has an overall valuation today just above $500 billion. Ethereum’s market capitalization represents 18.8% of the $2.7 trillion crypto economy.

After today’s 13% decline to $4,100, Ethereum (ETH) traders may have a few reasons to fear. The sharp drop looks to have broken a 55-day rising channel with a $5,500 goal. Those not worried about technical analysis will understand that the cryptocurrency’s 3.4% daily volatility justifies the 10% negative price swing. Still, one should not disregard externalities such as the United States Infrastructure Bill approval on Monday. The Act requires the reporting of digital asset transactions worth more than $10,000 to the Internal Revenue Service. It is unclear if this will apply to people and firms creating blockchain technology and wallets.

The price of Ether (ETH) nearly reached a new all-time high on Oct. 21 before dipping below $4,000 as a result of the $435 million options expiry on Oct. 22. The Altair update to Beacon Chain will push the Ethereum network one step closer to Ethereum 2.0 on October 27 at epoch 74240. Eth2 will be a completely proof-of-stake (PoS) network, for which the community has been preparing for over a year. Altair is an update to the Beacon Chain that brings support for light clients, pre-validator inactivity leak accounting, a rise in slashing severity, and clean-ups to validator rewards allowing for simplified stated management. This is the first scheduled upgrade to the Beacon Chain.

ETH/BTC dropped below its 200-day exponential moving average for the first time since March 2020, raising risks of more downside. Ether (ETH), Ethereum’s native cryptocurrency, increased by more than 15% in the first 12 days of October. However, when priced in BTC, the second-largest cryptocurrency is now in a decline when compared to Bitcoin’s (BTC) 30 percent increases in the same period. So far in October (and the fourth quarter of 2021), the ETH/BTC exchange rate has dropped by more than 12%, reaching 0.060215 BTC on Oct. 12 for the first time in more than two months.

Ether picked up momentum after breaking above $3377.89 and hit the $4000 mark today. If bulls sustain the price above this psychological level, the biggest altcoin could challenge the all-time high at $4372.72. The upsloping 20-day EMA ($3344) and an RSI in the overbought zone indicate that the bulls are in command. If buyers lift the price above $4372.72, the ETH/USDT pair may begin its climb toward the key milestone of $5000. This may not be easy as bears are likely to have other plans. They are likely to mount a stiff resistance in the $4000 to $4372.72 zone. If the price turns down from this zone and breaks below $3,700, the pair may drop to the 20-day EMA.

According to a number of reports and data from analytical websites, the Ethereum (ETH) blockchain has split into at least two versions due to a number of Geth nodes failing to upgrade to the proper chain. On Friday afternoon, the Ethereum network’s communication channel, “Go Ethereum,” tweeted about the event. The old version of the Geth client is used by more than 70% of the Ethereum network’s nodes. On August 24, the Twitter account Go Ethereum told the public about the upgrade and said: “Heads up. Geth v1.10.8 is out, fixing a security vulnerability in all live versions of Geth. All Geth users need to update. Further details will be provided at a later date to avoid attacks on Ethereum and downstream projects.”