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Analysts Think Ethereum Will Push Toward $500 After Bounce at $420

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  • Ethereum has dropped since its $460 highs.
  • The coin of the leading cryptocurrency currently trades for $440, though analysts say that it may catch a bid if it goes lower.
  • Analysts are specifically eyeing the $420 region, at which point ETH should post a strong bounce.
  • Bolstering the Ethereum bull case, on-chain data shows that there is an accumulation of the coin taking place.
  • Other trends show that ETH is being accumulated for the ETH2 upgrade.
  • Over $15 million worth of the leading cryptocurrency has been deposited in the ETH2 deposit contract.

Ethereum Primed to Bounce Toward $500, Analysts Say

Analysts think that Ethereum could move toward $500 once it manages to take $420 as support in the coming days. This comes after ETH has dropped strongly since the $460 local highs:

“Pretty clear picture of $ETH Supply and Demand flips. Makes for a decent case that 420 down to low 400s are area of interest for dip buys before further upside.”

Chart of ETH's price action over the past few months with an analysis of the current price action by crypto trader Smokey (TraderSmokey on Twitter).
Source: ETHUSD from TradingView.com

Other analysts think that the cryptocurrency can also move higher from $420. A pseudonymous trader said that he thinks an important support-resistance flip will take place at the $418-420 level, which should trigger a move toward new highs.

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Chart of ETH's price action over the past few months with an analysis of the current price action by crypto trader "Edward Morra" (Edwardmorra_BTC on Twitter).
Source: ETHUSD from TradingView.com

Whales Not Buying… Or Are They?

Bolstering the Ethereum bull case, on-chain data shows that there is an accumulation of the coin taking place.

One analyst noted that on a day earlier this week, 258,000 ETH moved off of Binance:

“258k $ETH moved off Binance in the last 24 hours. Almost 10% of what Binance had in it’s wallets. Let’s make it another 10% Sell side liquidity crisis coming in a few months. Where will you get Eth when it’s all locked in smart contracts and DeFi? Are you forward thinking?”

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Data of the ETH held by top crypto-asset exchanges shared by Pentoshi, head of TA at Blockfyre

Other trends show that ETH is being accumulated for the ETH2 upgrade. Over $15 million worth of the leading cryptocurrency has been deposited in the ETH2 deposit contract over the past few days as investors look to earn yields on their coins.

Ethereum investors expect the upgrade to drive up the price of the coin even further as expectations of yields grow in the platform. Staking is expected to provide 5-12% worth of yield (in ETH) paid each year.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Analysts Think Ethereum Will Push Toward $500 After Bounce at $420





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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.