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Ethereum Price Breaches Pivotal Resistance Level—And That’s Big for Bulls

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  • It’s been a good day for the crypto market, with Bitcoin, Ethereum, and altcoins posting strong gains.
  • The two leading crypto-assets have gained approximately 8% each over the past 24 hours, which is the best performance in many weeks.
  • Ethereum is expected to move higher as fundamental and technical trends align.
  • One crypto-asset trader pointed to the significance of Ethereum’s recent move higher.
  • The leading cryptocurrency recently passed above the important $390 resistance level, which marked the highs of a rally a number of weeks ago.
  • ETH closing above this level on a two-day basis will confirm that there’s more upside in the cards for the asset.

Ethereum Explodes Higher as Bitcoin Roars to $13,000

Ethereum is exploding higher as Bitcoin posts one of its best days in many months.

BTC is up 8% in the past 24 hours, having rallied from $11,900 to $12,850 as of this article’s writing, shocking most investors. ETH has pushed higher too, moving above $390 to $400 as of this article’s writing.

One crypto-asset trader pointed to the significance of Ethereum’s recent move higher.

The chart below is of ETH’s macro price performance but inverted. As the chart indicates, the leading cryptocurrency recently passed above the important $390 resistance level, which marked the highs of a rally a number of weeks ago.

This suggests that Ethereum is primed to move even higher in the weeks ahead if it confirms the level as support.

Chart of ETH's price action since the start of 2018 with analysis by crypto trader Horn Hairs (@Cryptohornhairs on Twitter).
Source: ETHUSD (inverse) from TradingView.com

Fundamental Trends Favoring Bulls

Fundamental Ethereum trends are favoring the bullish narrative shared by analysts.

Santiment, a blockchain data company, reported just recently that Ethereum investors are accumulating en-masse:

“$ETH’s top 10 whale exchange addresses have continued swapping their funds to non-exchange wallets, & moving holdings at an impressive rate. The 20.5% decrease in tokens on exchanges the past 2 months indicates price confidence by top #Ethereum holders.”

Image

Chart of ETH's price action over the past few months with an overlay of the number of top 10 exchange holdings vs. non-exchange holdings.
Chart from Santiment, a blockchain analytics firm.

Not to mention, innovation on the network continues as capital from venture capital firms continues to flood into the space.

Photo by JW DANG on Unsplash
Price tags: ethusd, ethbtc
Charts from TradingView.com
Ethereum Price Breaches Pivotal Resistance Level—And That's Big for Bulls



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Ethereum

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

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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.