Connect with us

Ethereum

Ethereum Expected to Drop Towards $300 as Rally Weakens

Published

on



Like Bitcoin, Ethereum was pushing higher from last week’s lows, at least until the past few hours. In the span of about 30 minutes earlier today, the leading cryptocurrency dropped from $355 or so to $344, marking a small yet notable drop.

This weakness and continued inability to surmount the resistances at $365-375 in the near term is sparking fears of a deeper drop.

Ethereum Drop Triggers Fears of a Steeper Correction

Michael Van De Poppe, a crypto analyst and a trader at the Amsterdam Stock Exchange, recently said that he fears a move under $300 in the near future.

Van De Poppe recently shared the chart below, which shows that the cryptocurrency remains below the aforementioned resistance. This may trigger a drop towards the local lows at $315, then even lower into the $250-280 range. He elaborated:

“$ETH #ETHEREUM Further downwards momentum to expect here. The crucial area that I’ll be interested in is $250-280. Since a while, actually.” 

Chart of ETH's price action over the past few months with an analysis by crypto trader Michael Van De Poppe (@Cryptomichnl on Twitter). 
Chart from TradingView.com

His concern has been echoed by another trader. This other trader said that unless Ethereum reclaims $360 in the near future, it is not in bullish short-term standing. He added that the cryptocurrency could drop as low as $280 in the coming weeks.

Social Trends Suggest Now Is a Good Buying Opportunity

Despite this weakness in ETH’s price, social media trends purportedly indicate that now is a good buying opportunity.

Santiment, a blockchain analytics firm, reported just recently that social media mentions of Ethereum are reaching six-month lows. This comes as the DeFi space has rapidly slowed down as ETH’s price has dropped.

While this may seem bearish, Santiment believes that this indicates that now may be a good time to enter an Ethereum position.

The firm commented on the matter:

“The social volume of #Ethereum is nearing 6-month low levels across social discourse platforms as traders look elsewhere for volatility to trade. However, assets like $ETH typically see the biggest buy opportunities when crowds are disinterested.”

Image

Chart of ETH's price action over the past few months with a social volume analysis by crypto research and data firm Santiment (@Santimentfeed on Twitter)

Other data indicates that ETH traders are currently overwhelmingly bearish on the coin. As reported by Bitcoinist previously, data shows that the funding rates of the ETH future market on Binance is currently negative, which only takes place from 3-5% of the time.

Counterintuitively, this may suggest that Ethereum may soon move higher. Negative funding rates in consolidation are indicative of a market that has the potential to move higher.

Photo by arash payam on Unsplash
Price tags: ethusd, ethbtc
Charts from TradingView.com
Sorry Bulls: Ethereum Expected to Drop Towards $300 as Rally Weakens





Source link

Ethereum

Bank of Israel steps up CBDC efforts with reported tests on Ethereum

Published

on

By



Israel’s central bank has allegedly completed a pilot — under the radar — for a central bank digital currency (CBDC) using Ethereum’s technology. The claim was made by the Israeli financial news site Globes and later reported by BNN Bloomberg.

Globes’ sources for its claims are not disclosed: the report alleged that the Bank of Israel (BOI) completed its pilot in an experimental, closed environment based on Ethereum’s architecture, involving the trial issuance of tokens representing digital shekels and their transfer between digital wallets. 

Globes also claimed that as part of its pilot, the BOI successfully tested its ability to program a car ownership certificate transfer using nonfungible digital tokens (NFTs) and completed a transaction wherein NFT payment was made the condition of the certificate’s transfer and vice versa. The transaction was instantaneous without any risk or need for a central intermediary or trustee.

This application, the report stated, represents just one possible example of what payment services providers, tasked with providing digital wallets for the public, could be able to build. The BOI has reportedly asked industry actors to propose various smart applications that could prospectively be built upon the infrastructure of a future digital shekel.

Globes however contended that, broadly speaking, the central bank has not been forthcoming about its current experimental CBDC research. As reported by Cointelegraph, the BOI’s deputy governor only revealed that a preliminary CBDC pilot was in fact already being conducted during a discussion held at the Fair Value Forum at Herzeliya IDC earlier this month. 

Globes characterized the deputy governor’s concession as the result of his having been “pushed into a corner” and criticized the central bank for not reaching out to local industry sufficiently as it begins to investigate the highly complex issue of CBDCs.

The BOI did, however, publish an in-depth report last month outlining its analysis and examination of various alternatives and models for a prospective CBDC, all the while emphasizing that the document and its proposed draft CBDC model was only meant to serve as a basis for discussion, not as a blueprint: 

”This draft does not represent a decision of the Bank of Israel regarding the characteristics of the digital shekel, if issued. The draft model forms the basis for discussion and examination of alternatives by the working teams dealing with the issue at the Bank of Israel, and, following the publication of this document, it will also serve as a basis for discussion in the professional community in Israel about the characteristics required for the digital shekel.”

Related: Israel’s central bank floats possible digital shekel with new action plan

This engagement with CBDCs signals renewed momentum and interest in CBDCs at the institution, after a team led by former governor Dr. Karnit Flug had recommended against issuing a digital shekel in late 2018. 

While the BOI’s report from May makes no mention of Ethereum, it does note that “the various opportunities that a digital shekel could offer for the innovation of the payments system in the Israeli economy include smart contracts, programmable money, and the like.”

Nor does the BOI’s report from May make any mention of either smart applications or NFTs. It does, however, note the possible benefits of using distributed ledger technologies as compared to existing, centralized technologies, for different parts of the digital shekel ecosystem. 

The bank’s report also stressed the interdependence of developments in digital identity technologies and CBDCs and pointed to the benefits of conducting proofs-of-concept that could help the institution to gauge the relevance, risks and benefits of a digital shekel for the Israeli economy at large.