Ethereum is Poised to See an Explosive Surge to $850 as Strength Mounts

  • Ethereum has seen some wild price action over the past few days, with its bulls moving to erase its pattern of underperformance that has plagued its price action
  • The crypto is now sitting firmly above $730 and may be positioned to see even further upside in the coming days
  • This rebound seen against its USD trading pair has also come as it shows subtle signs of strength against BTC as well
  • Weakness on ETHBTC has been plaguing its price action for the past few weeks and may continue to do so in the mid-term
  • One trader is confident that serious upside on both pairs could come about shortly, however, as he is pointing to a bullish technical pattern
  • He is specifically targeting a move towards $850 in the short-term

Ethereum and the rest of the cryptocurrency market have been flashing some subtle signs of strength over the past few days, with buyers being in full control of the crypto’s price action.

This has helped buck a multi-week trend of underperformance seen amongst all altcoins, with Bitcoin’s rally happening almost entirely in isolation of the rest of the market.

Where Ethereum trends in the mid-term may depend largely on whether or not bulls can sustain the newfound momentum they have created.

One analyst is watching closely for a move up towards $850 in the near-term.

Ethereum Gains Momentum as Altcoins Rebound 

At the time of writing, Ethereum is trading up just under 7% at its current price of $730. This marks a notable rebound from its recent lows of $560 set on the 24th of the month.

The crypto’s recent strength has come about as Bitcoin’s rally takes a slight pause, with the recent rejection at highs of $28,500 sparking a consolidation phase.

This has allowed altcoins – including Ethereum – to gain some momentum.

Analyst Claims ETH is Poised to Rally Past $800 Next

Ethereum’s rally may just be getting started. One trader is now expecting it to see a move up towards somewhere between $800 and $850. He notes that strength on its BTC pair may drive this movement.

“Sticking to the plan for ETH/BTC pairing. Next up 29, than 315. This should trigger some very solid movement on the USDT pairing. $800-$850.”

The coming few days should shed light on where altcoins will trend in the mid-term, as it may depend entirely on Ethereum.

Source: Bitcoininst

Altcoins Time?

After another highly volatile weekend trading day consisting of a new all-time high above $28,000 and a massive rejection, including a drop below $26K, BTC has calmed and as of now trading safely around $27,000.

Most altcoins have finally joined the party with some impressive double-digit gains, including Ethereum breaking north of $700, recording a current daily high at nearly $740, which is the highest of 2020.

Bitcoin’s New ATH And Subsequent Rejection

The primary cryptocurrency continued with its remarkable performance during this year’s Holiday season yesterday. After charting consecutive all-time highs above $26,000 and $27,000 on the days before, bitcoin headed towards another major milestone – $28,000.

It didn’t take long for the cryptocurrency to break above it. The run saw BTC painting the latest ATH at nearly $28,400 (on Bitstamp). Quite impressive considering the fact that BTC was trading around $10K during October.

However, as the community started speculating on the next major obstacle at $30,000, the bulls took charge. In the following hours, BTC dumped by more than $2,000 to a daily low beneath $26,000. Nevertheless, the asset has recovered some losses and currently hovers around $27,000.

From a technical perspective, the first support levels situated at $26,850, $26,500, and $25,700 (yesterday’s low) could assist in case of another price breakdown.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Altcoins Rise: Ethereum Breaks Above $700

The altcoin market trailed behind BTC during the latest run. Consequently, bitcoin’s dominance surged to a yearly high of nearly 72%. However, most altcoins have awakened in the past 24 hours with serious gains, thus reducing BTC’s dominance beneath 70%.

Ethereum is among the most impressive performers with a 15% surge on a 24-hour scale, as recorded earlier today. As such, the second-largest cryptocurrency by market cap has overcome the $700 price tag and reached its highest level since early 2018 – $738 (Binance).

Chainlink has added a similar percentage to its price and trades above $12.5. Bitcoin Cash (4%), Binance Coin (3.5%), Polkadot (4.5%), Cardano (2.25%) are also in the green.

Litecoin and Ripple are the two coins from the top ten that have lost value. LTC (-3%) struggles with $130, while XRP (-5%) is down to $0.28.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

Further gains are evident from Ocean Protocol (13%), THORChain (10%), Decred (10%), Aave (10%), Uniswap (9.5%), and Kusama (9%).

Source: Crypto Potato

The Altcoins Christmas Bloodbath – Market Cap Lost Over $40B

Bitcoin’s recent rollercoaster continued in the past 24 hours with another $1,000 move before settling around $23,000. However, BTC’s dominance has spiked as the entire altcoin market has bled out, led by Ripple’s continuous drops.

Bitcoin’s 24H Wild Ride

The past several days have been particularly volatile for the primary cryptocurrency. Just a few days ago, BTC skyrocketed to a new all-time high of $24,300 before getting rejected and dumping by more than $2,000.

Bitcoin recovered most losses rather quickly and even attempted a few breakouts above $24,000 again. However, the bears intervened and didn’t allow any new records.

In the past 24 hours, BTC spiked from a low of $22,800 to an intraday high of around $24,000 once more. Another rejection followed that drove the asset beneath $23,000 hours later. Nevertheless, BTC has reclaimed some ground and currently trades around $23,000.

Should another price breakdown arrives, the technical indicators suggest that BTC could rely on the support levels situated at $22,700, $22,500, and $22,000.

Alternatively, the significant resistance line at $24,000 would be the first major obstacle if bitcoin resumes its recent bull run.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Alts Bleed Out, Market Cap Dives

It’s safe to say that the alternative coins have seen better days as most have been losing substantial chunks of value for a few consecutive days. Such is the case with Ripple’s XRP.

After the SEC brought charges against the payment processor, the native token XRP has been plummeting in value. In the past 24 hours, the asset has lost another 30% and struggles at $0.25.XRP has dropped by 60% since Saturday.

However, it seems that most altcoins feel the adverse effects. Ethereum has dropped by 6% to $575, Bitcoin Cash (-10%) trades at $275, Binance Coin (-7%) sits at $31, Polkadot (-4.5%) is well beneath $5, and Litecoin (-7%) struggles to stay above $100.

Apart from XRP, Chainlink and Cardano have also plummeted by double-digits in a day. LINK (-17%) fights to stay above $10, while ADA (-11%) is at $0.135.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

Further declines are evident from numerous lower- and mid-cap alts. Band Protocol (-17%), Algorand (-15%), Yearn.Finance (-15%), Zcash (-15%), EOS (-14%), Neo (-14%), Dogecoin (-13%) are just a few.

Ultimately, the cumulative market capitalization of all cryptocurrency assets has lost over $40 billion in a day and $60 billion since Sunday.

With BTC’s relatively moderate price decline, while the altcoins are deep in the red, bitcoin’s dominance over the market has surged to over 69%.

Source: Crypto Potato

Real Estate Billionaire Sam Zell Skeptical of Bitcoin but Says ‘It May Be the Answer or One of the Answers’

The founder and chairman of Equity Group Investments Sam Zell says he is sceptical of bitcoin but concedes that it may be part of the solution. In particular, the billionaire and real estate magnate thinks the bitcoin community is composed of many individuals that he is not fond of.

Fast Talking Characters

In remarks made during an interview, the billionaire, who predicts that the U.S. dollar will lose its status as the world’s reserve currency within the decade, has no kind words for some unnamed individuals in the bitcoin space. A report quotes Zell remarking:

I am very sceptical, frankly, of bitcoin. Ultimately, it may be the answer or one of the answers. But right now, it’s a world that’s extraordinarily populated by chameleons and other fast-talking characters. I don’t believe everybody involved in it are the kind of people I’d like to follow.

Although the billionaire does not explain how BTC can be one of the answers, the same interview, however, does provide some hints as to why Zell thinks so. When talking about the possibility of the U.S. dollar losing its reserve status, Zell warns:

“If we keep doing what we are doing right now, I think it is 10 or 15 years away. If we lose the reserve status, I could see a 25% reduction in our standard of living.”

US Dollar Reserve Currency Status

Meanwhile, other individuals and organizations including the International Monetary Fund (IMF) seem to share the billionaire’s sentiments on the U.S. dollar’s future status. The IMF says central banks now need to think about the possibility of replacing the dollar with other alternatives which include digital currencies.

However, for his part, Zell warns of the disastrous consequences ahead if the tradition of “unlimited debt and irresponsible activity” does not end. Many analysts including bitcoiners see the excessive borrowing and printing of money as the prime cause of the U.S. dollar’s depreciation. The resulting diminished dollar value then forces some investors to seek and invest in inflation resistant assets like fiat money. Bitcoin is proving to be one such asset.

What do you think of Zell’s bitcoin remarks? Tell us what you think in the comments section below.

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Wall Street Accumulation of Bitcoin Continues Despite Consolidation

  • BTC continues to be accumulated by Grayscale, a leading digital asset fund manager.
  • It was noted that the firm’s leading Bitcoin Trust added 12,319 BTC to its coffers in a single day.

Bitcoin Continues to Be Accumulated by Grayscale

Bitcoin continues to be accumulated by Grayscale, a leading digital asset fund manager.

Kevin Rooke, a technology analyst, noted that “Grayscale’s Bitcoin Trust just added 12,319 BTC to $GBTC in a single day. That’s more than the 11,512 BTC they added during all of last week, when Bitcoin broke its ATH.”

This shows clear institutional demand for Bitcoin despite the recent consolidation.

While the Grayscale Trusts are seeing massive inflows, these inflows may slow for the time being. As has been widely reported, the firm has temporarily halted new investments into six of its Trusts.

This is only temporary and is likely related to firstly, the holiday season, and secondly, a large unlock of private shares of the Trusts, which can now be sold on the secondary market.

Some think that this may mean there will be limited inflows into Bitcoin and Ethereum over the next few weeks, but this appears to only be a temporary setback for the market. Additionally, other institutional players are accumulating the leading cryptocurrencies via other vehicles.

Not the Only One That Thinks So

This recent confirmation of a large Grayscale purchase comes as MicroStrategy, the American business services company, has confirmed a large Bitcoin purchase for its Treasury:

“TYSONS CORNER, Va.–(BUSINESS WIRE)–Dec. 21, 2020– MicroStrategy® Incorporated (Nasdaq: MSTR) (the “Company”), the largest independent publicly-traded business intelligence company, today announced that it had purchased an additional approximately 29,646 bitcoins for approximately $650.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $21,925 per bitcoin, inclusive of fees and expenses.”

The firm now holds “an aggregate of approximately 70,470 bitcoins, which were acquired at an aggregate purchase price of approximately $1.125 billion and an average purchase price of approximately $15,964 per bitcoin, inclusive of fees and expenses.”

MicroStrategy sees the leading cryptocurrency as a superior investment to cash. Commenting on the recent investment, Michael Saylor of Microstrategy said:

“The acquisition of additional bitcoins announced today reaffirms our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value.  We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the Company, have been significant factors in the recent appreciation in our stock price.”

These corporations and funds investing in Bitcoin for the long run will likely restrict the amount of BTC on the market, thus pushing up prices over time assuming demand for the cryptocurrency increases.

Source: Bitcoininst

SkyBridge Capital’s Bitcoin Fund Starts With A $25 Million Investment

Although BTC has exploded above $20,000 recently, Anthony Scaramucci from the billion-dollar hedge fund SkyBridge Capital said that there’s more room for growth as the asset is still in the first inning.

He added that his organization has put in $25 million in the recently announced Bitcoin Fund, which will be available for accredited investors from January 4th, 2021.

Detail’s On The BTC Fund Launched By SkyBridge

CryptoPotato reported recently that the Wall Street giant SkyBridge Capital, founded by Anthony Scaramucci, filed a Form D with the US Securities and Exchange Commission for its first Bitcoin Fund.

Apart from indicating that Scaramucci will serve as the SkyBridge Bitcoin Fund L.P. manager, the document lacked details. However, the founder of the hedge fund provided more information during a recent interview with CNBC.

Despite saying that “we would have loved deploying the fund three or four months ago” before BTC price skyrocketed to over $20,000, he believes that the adoption curve is still very early. Nevertheless, he admitted that his organization had spent two years researching BTC and “getting comfortable with bitcoin.”

Scaramucci said that SkyBridge decided to build a “client-friendly product with something of a $50,000 minimum” after talking to industry insiders and BTC proponents such as MicroStrategy’s Michael Saylor.

The L.P. structure of the fund will enable SkyBridge to “democratize bitcoin as we did with the hedge fund industry a decade ago.” Scaramucci added that after four months of preparations, the fund is already live with a $25 million investment from his organization. Outside investors will have the chance to participate starting from January 4th, 2021.

Anthony Scaramucci. Source: CNBC

Research Shows: Bitcoin Is A Store Of Value

While commenting on BTC’s role in the current and future financial scene, Scaramucci said that his team researched whether the cryptocurrency could indeed serve as a store of value, as some believe.

“You either have to accept that bitcoin is a store of value or not. There are still skeptics out there, and that’s why we think we are in the first inning. After doing the research that we’ve done, we believe that it is.”

Scaramucci added that given the current monetary supply and the global central banking coordination, bitcoin “will be a very strong asset class in the next decade.”

When asked if his organization is “too late” to launch such a fund after BTC’s impressive Q4 2020 rally, Scaramucci said:

“You are about to see that wave of early adoption by the institutional community. I’d like to get our investors involved before that goes into full throttle.”

The founder of SkyBridge also noted that BTC could easily expand its value “2x-3x from here.”

Source: Crypto Potato

JPMorgan Warns of Bitcoin Correction, Describing BTC as Overbought

JPMorgan’s analysts have warned about the odds of a bitcoin correction which would increase if the flows into Grayscale’s bitcoin trust slow significantly. The analysts indicated that bitcoin is “overbought.”

JPMorgan Reveals Bitcoin’s Outlook

The analysts at JPMorgan Chase & Co. gave their bitcoin prediction in a note on Friday. They explained that flows into Grayscale’s bitcoin trust are key to the outlook of the cryptocurrency, Bloomberg reported Monday. According to the publication, the analysts believe:

The odds of a bitcoin correction would increase if the flows into the world’s largest traded cryptocurrency fund slow significantly.

The JPMorgan analysts further indicated that bitcoin was likely “overbought” after the recent rally. They clarified that the flows into the Grayscale Bitcoin Trust “are too big to allow any position unwinding by momentum traders to create sustained negative price dynamics.” They emphasized that “a major slowdown in those flows would boost the risk of a bitcoin correction akin to the one in the second half of 2019,” the news outlet conveyed.

Grayscale Investments has about 15.7 billion in assets under management as of Dec. 21, with its bitcoin trust leading the pool with more than $13.34 billion. Inflows into the fund are running at about $1 billion per month, the JPMorgan analysts noted.

Institutional investors are increasingly interested in bitcoin. The firm previously stated that investors had been moving their money from gold exchange-traded funds (ETFs) into Grayscale’s bitcoin trust. Following a $100 million investment in BTC from insurance giant Massmutual, JPMorgan said that they anticipated a $600 billion demand for bitcoin.

What do you think about JPMorgan’s bitcoin prediction? Let us know in the comments section below.

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SEC to Sue Ripple Over XRP Cryptocurrency — CEO Insists XRP Is Not a Security

The U.S. Securities and Exchange Commission (SEC) is set to bring a lawsuit against Ripple over the XRP cryptocurrency which it considers a security, according to Ripple CEO Brad Garlinghouse. Insisting that XRP is not a security, he calls the SEC’s lawsuit an attack on cryptocurrency that is out of step with the G20 countries and the rest of the U.S. government.

SEC to Bring Lawsuit Against Ripple Over XRP, CEO Calls It an Attack on Crypto

The SEC is reportedly set to file a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen, over the sale of the XRP cryptocurrency. Ripple said it received a notice from the regulator Monday alleging that it violated the laws on selling unregistered securities when it sold XRP to investors. The news caused the price of XRP to fall sharply, dropping about 15% in early Tuesday morning.

Expecting the lawsuit to be filed in the next few days, Garlinghouse tweeted Monday:

Today, the SEC voted to attack crypto. Chairman Jay Clayton – in his final act – is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH.

Insisting that XRP, like bitcoin, is not a security, Garlinghouse calls the lawsuit by the SEC “fundamentally wrong as a matter of law and fact.” SEC Chairman Jay Clayton is stepping down at the end of the year.

Ripple Argues XRP Not a Security, Questions SEC’s Timing for the Lawsuit

Garlinghouse argued that “XRP is a currency, and does not have to be registered as an investment contract.” He pointed out that “the Justice Department and the Treasury’s FinCEN already determined that XRP is a virtual currency in 2015 and other G20 regulators have done the same. No other country has classified XRP as a security.”

Yoshitaka Kitao, president of SBI Holdings, a Ripple partner, noted that in Japan, the Financial Service Agency (FSA) “has already made it clear that XRP is not a security,” adding that he is “optimistic that Ripple will prevail in the final ruling in the US.”

Asserting that the SEC is “out of step with other G20 countries & the rest of the US govt,” and the agency “should not be able to cherry-pick what innovation looks like,” Garlinghouse declared:

Ripple has and will continue to use XRP … Make no mistake, we are ready to fight and win – this battle is just beginning.

The CEO questioned the SEC’s motive and the timing of the lawsuit. “The SEC has permitted XRP to function as a currency for over eight years, and we question the motivation for bringing this action just days before the change in administration,” he began. “Instead of providing a clear regulatory framework for crypto in the U.S., (SEC Chairman) Jay Clayton inexplicably decided to sue Ripple — leaving the actual legal work to the next administration.”

U.S. crypto regulations have caused Ripple to consider moving its headquarters to a more crypto-friendly jurisdiction, such as London, Switzerland, Singapore, Japan, or the United Arab Emirates.

What do you think about SEC suing Ripple over XRP? Let us know in the comments section below.

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Microstrategy Buys 29,646 More Bitcoins — Now Holds Over $1.6 Billion in BTC

Nasdaq-listed Microstrategy has purchased 29,646 more bitcoins for $650 million. The latest purchase brings the company’s bitcoin holdings to 70,470 — worth more than $1.6 billion.

Microstrategy Now Has Over $1.6 Billion in Bitcoin

Billion-dollar public company Microstrategy (Nasdaq: MSTR) announced its latest bitcoin purchase on Monday. CEO Michael Saylor tweeted:

Microstrategy has purchased an additional 29,646 bitcoins for $650 million at an average price of $21,925 per bitcoin and now hodl an aggregate of 70,470 bitcoins purchased for $1.125 billion at an average price of $15,964 per bitcoin.

Microstrategy started buying large amounts of bitcoin in August via Coinbase’s institutional service, making the cryptocurrency its primary reserve asset. After exhausting its own excess cash, the company raised funds by selling $650 million worth of convertible senior notes to buy more bitcoin, causing Citigroup to downgrade its stock. At the current price, Microstrategy’s 70,470 bitcoins are worth more than $1.6 billion.

Saylor, who is now an avid bitcoin proponent, tried to convince Elon Musk over the weekend to move billions of dollars of Tesla’s funds into bitcoin. “If you want to do your shareholders a $100 billion favor, convert the $TSLA balance sheet from USD to BTC. Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor,” he told Musk on Sunday. Saylor then offered to share his playbook with Musk offline.

“The acquisition of additional bitcoins announced today reaffirms our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value,” Saylor opined. Commenting on his company’s latest bitcoin purchase, Microstrategy CFO Phong Le said:

The company continues to believe bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash.

What do you think about Microstrategy’s mega bitcoin purchases? Let us know in the comments section below.

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ETH Retests $600 – Temporary Correction or Momentum Change? (Ethereum Price Analysis)

ETH/USD – Ethereum Rolls Over From 2020 Highs

Key Support Levels: $600, $580, $556.
Key Resistance Levels: $625, $650, $665.

Last week, Ethereum surged higher after rebounding from $580 to break above $600 on the same day that Bitcoin penetrated $20,000. The coin continued to climb over the following few days but couldn’t break past the $675 resistance (long term .786 Fib Retracement).

Over the weekend, ETH struggled to maintain itself above $650 and eventually rolled over to fall as low as $625. This price drop continued today as ETH briefly spiked beneath $600 again. It is currently trading at $614.

ETH/USD Daily Chart. Source: TradingView

ETH-USD Short Term Price Prediction

Looking ahead, if the buyers can hold the $600 support and rebound, the first level of resistance lies at $625. This is followed by $650, $665, and $675 (bearish .786 Fib). Additional resistance then lies at $700.

On the other side, if the bears push beneath the $600 (.382 Fib) level, support is expected at $580 (.5 Fib & Rising trend line), $556 (.618 Fib), and $530 (December lows).

Bearish Divergence had been developing on the RSI over the past week, which eventually resulted in Ethereum reversing over the weekend. If it continues beneath the mid-line, the bearish momentum is likely to drive ETH toward $580.

Additionally, the Stochastic RSI also produced a bearish crossover signal.

ETH/BTC – Can ETH Defend The November Lows?

Key Support Levels: 0.0266 BTC, 0.0262 BTC, 0.0253 BTC.
Key Resistance Levels: 0.0278 BTC, 0.0284 BTC, 0.029 BTC.

Ethereum has been struggling heavily against Bitcoin this month. It was trading at 0.0318 BTC during the first week of December but dropped lower into the 0.03 BTC support during the first half of the month.

Last week, the bears pushed ETH beneath the 0.03 BTC support and sent it below the 200-days EMA to hit the 0.0278 BTC level. The coin continued beneath 0.0278 BTC over the weekend and dropped into the 0.0266 BTC support today.

The November lows are located at 0.0262 BTC, and a break beneath that would put Ethereum at fresh five-month lows.

ETH/BTC Daily Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, if the sellers break 0.0266 BTC, the first level of support lies at 0.0262 BTC. This is followed by 0.0253 BTC, 0.0251 BTC, 0.0245 BTC.

On the other side, the first level of resistance lies at 0.0278 BTC. This is followed by 0.0284 BTC (Feb 2020 Highs), 0.029 BTC, and 0.03 BTC.

Both the RSI and Stochastic RSI are in extremely oversold areas, which could suggest that the bears might be a little overextended at this moment in time.

Source: Crypto Potato