Connect with us

Altcoins

Ethereum: Here’s the caveat to look out for as ETH 2.0’s TVL reaches new ATH

Published

on

Ethereum: Here’s the caveat to look out for as ETH 2.0’s TVL reaches new ATH

Ethereum, the largest altcoin within the crypto market possesses one of the strongest enthusiasts/holders within this domain. Despite many headwinds, these holders have maintained an undeterred narrative regarding holding their coins. Just recently, on 4 May, nearly 2.56 million ETH had left centralized exchanges since January.

Can this trend continue to show amidst the growing concerns regarding interest rate hike?

Up or down but ‘piling on’

ETH investors, traders or stakers have anticipated the upcoming ‘Merge‘ since last year. Capitalizing on this anticipation, the total value in the ETH 2.0 deposit contract just reached an ATH. The amount of Ethereum staked on the Beacon Chain reached another milestone despite asset prices tumbling at an alarming rate.

Advertisement

According to on-chain data from crypto analytics platform Glassnode, the total value in the ETH 2.0 deposit contract stood at an all-time high of 12,374,946 ETH. This also signified that over 10% of ETH’s supply has been sent into the Ethereum 2.0 deposit contract.

📈 #Ethereum $ETH Total Value in the ETH 2.0 Deposit Contract just reached an ATH of 12,374,946 ETH

View metric:https://t.co/SzbMPqvhlb pic.twitter.com/3jeHudJHeq

— glassnode alerts (@glassnodealerts) May 6, 2022

Moreover, the staking reward is around 4.4% annual percentage yield. This might be a lot less than the double-digit returns early Ethereum stakers enjoyed in the past. Nonetheless, the demand remains significant. As per ultrasound.money, 2.27 million ETH burned so far, worth an estimated $6.25 billion.

Advertisement

Are there ETH liquidation concerns?

Well, 100% yes. Unfortunately for investors, none of these bullish metrics had made a difference to price action this week. ETH dumped more than 7% in just 24 hours as it traded around the $2.7k mark.

ETH holders that enjoyed profit, for instance, suffered a massive blow as number of addresses in profit (7d MA) reached a 1-month low of 55,775,513.583.

Source: Glassnode

Advertisement

In fact, the Daily active addresses went down by 3%. This suggested that investors’ interaction with ETH scaled at a minimal rate during the past week. Likewise, this affected interest among new participants.

Source: IntotheBlock

Even the large holders’ Netflow showed a grim picture as the metric fell by 50% for the week. This signified that large holders sold more ETH than accumulating them.

Advertisement

Source: ITB

Nonetheless, one aspect didn’t change – Ethereum acceptance amongst institutions. The owner of a $6.5 million Greenwich estate has decided to accept cryptocurrencies, namely Bitcoin or Ethereum, as payment for the property.

Advertisement

Altcoins

Binance Coin [BNB]: Don’t overlook these crucial indicators

Published

on

Binance Coin [BNB]: Don’t overlook these crucial indicators

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

As the dust seemingly settled in the altcoin market, Binance Coin’s (BNB) price took shape within a bearish rising wedge (yellow). The end of this tight phase could result in a sharp swing in either direction.

With the price finally breaching the basis line (green) of the Bollinger Bands (BB), the buyers affirmed the gradual increase in their influence. But, with slightly weak indications on its technicals, the buyers need to negate the selling pressure on high volumes.

Advertisement

At press time, BNB was trading at $315.9, down by 2.97% in the last 24 hours. 

BNB Daily Chart

Source: TradingView, BNB/USDT

After bouncing back from the $268-support, BNB formed a rising wedge on its 4-hour chart. Now, there are two possibilities from this. Should the pattern function as a continuation of the previous downtrend, a further drawdown will be likely. A bearish outcome would expose the alt to a potential test of the Point of Control (POC, red) before any further pulldown.

Advertisement

To affirm this outcome, bears would need to enforce a close below the lower trendline of the wedge. With the BB looking to curb its current volatility, the potential decline might enter a squeeze phase in the coming sessions.

On the other hand, there are chances for the buyers to step in at the $307-support. This trajectory may be possible due to the alt’s recent streak of higher troughs. An upwards breakout would position BNB toward the $357-level in the days to come. A close above $326 would boost the probability of this upswing.

Rationale

Source: TradingView, BNB/USDT

Advertisement

The 4-hour RSI was denied a break above its half-line as it plunged lower towards the 44-zone. Furthermore, the -DI moved parallel with the +DI line and suggested that a bearish trend is still active.

Also, capital inflows took a hit while the CMF struggled to cross the zero-mark. However, any bounce-back from its current support range would confirm a bullish divergence.

Conclusion

Looking at its press time setup, BNB tilted slightly towards the selling market. The investors should watch out for a break outside of the current pattern to make any potential calls. Finally, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.

Advertisement

Continue Reading

Altcoins

Uniswap: Assessing the prospects of ‘true’ recovery for UNI

Published

on

Uniswap: Assessing the prospects of ‘true’ recovery for UNI

The cryptocurrency market has been at its lowest since the beginning of May 2022. However, that is not the case for Uniswap. UNI hasn’t rallied or even projected any sort of momentum for almost a year now. 

A trip down Uniswap’s memory lane

Trading at $5.6 at press time, UNI seemed to be struggling to recover from the woes witnessed in May. In fact, it has already been placed under the critical support of $8.4. Tested multiple times in the past, this support level is essential for Uniswap if the token wishes to hike on the charts.

However, despite all the crashes and the dips, UNI did not see a single holder of the DeFi cryptocurrency leave the network. UNI HODLers remained where they were months ago.

Advertisement

Curiously, the total number of UNI holders didn’t just stay constant. Over the last one month, the total number of UNI investors has spiked by almost 3k. The number of Uniswap holders stood at 290k, at the time of writing.

Furthermore, UNI holders are unfazed by the events of 9 May and are surprisingly still bullish on the asset. In the last 24 hours alone, about 1 million UNI amounting to a total of $5.6 million was bought by investors as the crypto “recovered” by a mere 3%.

Furthermore, one of the biggest concerns going forward is the asset’s correlation with Bitcoin. Sharing a correlation this high, Uniswap has placed its investors under the threat of bearishness should BTC ever drop again.

Trading at $29k at press time, BTC has the attention of every trader and investor now. Especially since a further decline would impact the entire market. However, a close above $30k could do the opposite trick.

Advertisement

The last time all UNI investors were together in profits was back in May 2021 when UNI peaked at $48. This will be unlikely this time considering the ongoing bloodbath in the market. 

In fact, the network-wide supply of UNI has also been sitting in losses for five months now. This may discourage new investors from entering, even at lows of $5.6. However, given the current situation, Uniswap is better off without more bearishness over the next few months.

Advertisement

Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

Advertisement

Advertisement
Continue Reading

Altcoins

Stellar: Answer the Q whether HODLing is still the way to go

Published

on

Stellar: Answer the Q whether HODLing is still the way to go

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

At the time of writing, Stellar (XLM) was sailing below the lower boundary of its Pitchfork after the latest bearish engulfing candlestick on its daily chart. The latest selling spree has set up a bearish structure for XLM.

Any close below the current pattern could spiral into further losses by paving a pathway towards the $0.12-zone. At press time, XLM was trading at $0.1283.

Advertisement

XLM Daily Chart

Source: TradingView, XLM/USD

Since XLM flipped towards the south from the $0.4-zone, the bears found renewed pressure to pull the alt and test the $0.16-mark (previous support). After a liquidation streak, the recent bearish phase saw a drawdown from this mark after an over 45% weekly decline towards its 17-month low on 12 May.

With the current structure exhibiting bearishness, the bulls need to make extraordinary efforts to halt the ongoing selling momentum. For this, they still need to propel high buying volumes. The current bearish pennant setup could play spoilsport for recent buying endeavours.

Advertisement

Any close below the pattern could lead to a near-term pullback towards the $0.12-baseline. Post which, the bulls would be keen to bridge the overextended gap between the 20 EMA (red) and the 50 EMA (cyan). In this case, a close above the Pitchfork would reignite the possibilities for any recovery. 

Rationale

Source: TradingView, XLM/USD

The RSI underlined a visible selling edge while compressing in the 36-41 range. The investors/traders must watch out for a break beyond the current bounds to enter either buy/sell calls.

Advertisement

Over the last four days, the bearish CMF marked lower peaks on the daily timeframe. But, any bounce-back from the -0.1-mark would confirm the existence of a bullish divergence with the price.  

Conclusion

Looking at the prevailing bearish pattern coupled with weak buying volumes, sustaining a rally for the bulls would be relatively tougher. Any break below the pennant could lead to short-term losses or an extended tight phase before the buyers show up. 

Besides, investors/traders should factor in the broader market sentiment and on-chain developments to make a profitable move.

Advertisement

With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

Advertisement

Advertisement

Continue Reading

Trending