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History Shows That Ethereum Is on the Verge of a Brutal 6-Month Correction

Historical analysis shows that Ethereum is on the verge of a brutal six-month correction after nearly doubling since the start of the year. Ethereum Is Primed to See a Six-Month Correction Ethereum is primed to see a six-month correction, despite rallying by nearly 200% since March’s capitulation lows. An analyst recently shared the chart below accentuating this sentiment. It shows that Ethereum has a pattern where it rallies during the first half of the year, […]

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Historical analysis shows that Ethereum is on the verge of a brutal six-month correction after nearly doubling since the start of the year.
Ethereum Is Primed to See a Six-Month Correction
Ethereum is primed to see a six-month correction, despite rallying by nearly 200% since March’s capitulation lows.
An analyst recently shared the chart below accentuating this sentiment. It shows that Ethereum has a pattern where it rallies during the first half of the year, then corrects during the second half.
Should this trend persist, Ethereum is primed to see a six-month correction that will likely bring it back into the ~$100 range.
“If ETH follows its cycle this time then high of the year could be in & we’ve 6 month correction,” the analyst who shared the chart wrote. Ethereum price analysis by cryptocurrency trader ‘Edward Morra’ (@edwardsmorra_BTC on Twitter). The chart from TradingView.com
On-chain analytics also show that Ethereum is on the verge of moving lower.
Earlier this month blockchain data firm Glassnode revealed that ETH’s recent price performance has allowed 80% of the cryptocurrency’s total supply to move into a region of “profit.”
This metric is derived by determining the prices at which all Ethereum addresses accumulated the cryptocurrency.
The last time this metric was this high, Ethereum retraced from ~$290 to $88 in the span of six weeks. And the time before that, the cryptocurrency retraced from around $360 to $120 over the course of six months. Ethereum on-chain metrics shared by cryptocurrency analytics firm Glassnode (@Glassnode on Twitter).
Blockchain data firm IntoTheBlock revealed that three out of seven of its core metrics are currently printing “bearish” signals.
The metrics currently “bearish” are as follows: in the money, which tracks the profitability of holders; large transactions, the number of high-volume ETH transactions; and smart price, which effectively attempts to derive an implied price of ETH by checking order book data.
Bitcoin Is Bearish As Well 
The expectations of an Ethereum correction can be corroborated by equally as bearish Bitcoin analyses.
Charlie Morris, the founder of ByteTree, reported on June 14th that there currently is a convergence of on-chain data showing that prices will dive:
“1-week network velocity down to 454%, 5-wk 556%. Tx value down, av tx size down, fees down, MRI shot to pieces. Why the lack of interest? Can’t see price holding up. Fair value <$7k,” Morris wrote. #bitcoin on chain stats are dire. 1 week network velocity down to 454%, 5wk 556%. Tx value down, av tx size down, fees down, MRI shot to pieces. Why the lack of interest? Can’t see price holding up. Fair value <$7k. https://t.co/5O82LldYl6
— Charlie Morris (@AtlasPulse) June 14, 2020 A top trader shared those expectations, referencing how commonplace it is for Bitcoin to retrace upwards of 30% during bull markets:
“I’ve been seeing more and more comments saying BTC going down to support is unlikely because that’d be too big a drop. That’s not how BTC works. Retraces are short and vicious. Crashes even more so. 40% down is not unlikely, it’s happened before, it’ll happen again.”
Featured Image from Shutterstock Price tags: ethusd History Shows That Ethereum Is on the Verge of a Brutal 6-Month Correction Source: https://bitcoinist.com/history-shows-ethereum-verge-brutal-6-month-correction/?utm_source=rss&utm_medium=rss&utm_campaign=history-shows-ethereum-verge-brutal-6-month-correction

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Ethereum’s Strength Mounts Higher, Rally To 180% Highly Possible

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Ethereum’s strength mounts higher which will likely make it push a new 180% rally in the near-term but how will it perform against BTC? Let’s find out in our latest Ethereum price news.

ETH and BTC both saw major drops against their USD trading pairs today and the move came after BTC raced to a new all-time high and posted a rejection at this level that outlined its weakness among the bulls. ETH’s pair however remained stable as the two digital assets moved lower together. This could be considered as a positive thing for Ethereum as one analyst noted that the current strength that these coins have shows that ETH could rally by 180%. This could have serious implications for the USD trading pair as well as favoring the bulls.

eth/usd
Source ETH/USD on TradingView.com

Ethereum and the rest of the crypto market were caught in an intense bout of volatility which came thanks to Bitcoin’s inability to break the upper $19,000 region. The selling pressure spread on the entire market which came when Bitcoin tried to set a new all-time high. However, it dropped to $18,200 before settling at a significant support level. This movement sent shockwaves over the market and ETH dropped into the upper $500 region after navigating in the mid $600 zone. One trader thinks that ETH will see more upsides in the near-term mainly against the BTC trading pair.

At the time of writing, ETH was trading under 5% with a current price of $589. This marked a notable decline from the highs of $640 that was set during yesterday’s market-wide upwards swing. The selling pressure forced the second biggest crypto below $600 which happened moments after bitcoin got rejected at its $19,800 highs. BTC dropped to as low as $18,200 before looking for a serious buying side support.

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eth chart
Image Courtesy of Smokey. Source ETHBTC on TradingView.

It’s not a secret that ETH was underperforming BTC during its recent uptrend but the crypto is still down 50% from its all-time high. With that said, one trader thinks that there will be a price swing in ETH’s favor. He postulated that it could soon rise by about 90% or even up to 180% due to its reclaiming its 200-day EMA:

 “ETH | BTC: Imo the ETH Daily is setting up quite nicely for a bullish future. 200EMA reclaimed, major TL broken and retested, bullish Kumo Twist, demand tested. Feed this bullish energy into the weekly and break the 200W EMA and imo we’re good for 90-180% gain vs BTC.”

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/ethereum-news/ethereums-strength-mounts-higher-rally-to-180-highly-possible/

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Chainlink Strengthens Polkadot Through RioDeFi Oracle Integration

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The crypto world’s leading oracle solution is integrating with its leading interoperability blockchain. RioDeFi, the decentralized finance blockchain connected to Polkadot, has revealed that Chainlink’s price oracles are to provide market data across its network. The deal means that projects building on RioDeFi, including MANTRA DAO, will be able to access decentralized and tamper-proof price feeds.

RioDeFi Passes Another Milestone

The integration of Chainlink oracles is increasingly seen as evidence of a blockchain’s maturity; a rite of passage that all fledgling networks must pass in order to be taken seriously. RioDeFi hasn’t partnered with Chainlink to tick off another item on its roadmap or to flex, it should be noted: there are more practical considerations at play.

Oracles are at the heart of intelligent crypto network design. They provide a means of querying data for actions that occur offchain, be that on another crypto network or in the real world. Chainlink is synonymous with this service, and its decentralized oracles are used by more crypto projects than any other.

Its most popular product is its Price Feeds, which will be integrated into the entire RioDeFi ecosystem including its mobile wallet, exchange, and payment dApp. Oracles must perform a critical role, relaying rapidly-changing price information, such as the price of BTC/USD, quickly and accurately. Crucially, this information must be tamper-resistant to prevent exploitation by malevolent actors. False pricing can enable sophisticated attackers to profit from arbitrage, often using flash loans to acquire the capital necessary to implement the exploit.

RioDeFi Welcomes Chainlink Partnership

“The ability to provide data from the outside world into smart contracts in a trustless manner is becoming a bedrock for the blockchain industry and defi,” said RioDeFi CEO James Anderson. “We are delighted to integrate Chainlink to provide our developers with secure and reliable price data with strong market coverage, ultimately enabling the creation of a whole suite of financial applications that can be trusted to trigger the movement of large amounts of onchain value.”

Although the partnership is a bigger deal for RioDeFi than it is for Chainlink, it is an arrangement that will work to the advantage of both parties, giving the latter greater exposure to Polkadot and its interoperable series of parachains. The benefits RioDeFi will gain from accessing Chainlink’s price feeds were succinctly explained by Daniel Kochis, Head of Chainlink Business Development: “By using time-tested oracle networks already in production, RioDeFi’s ecosystem can focus on building next-generation defi dApps without having to spend time and resources, as well as take on the additional risk of provisioning their own oracle infrastructure or using unproven alternatives.”

First Trading, Then Gaming

Initially, Chainlink’s price feeds will be put to use in the suite of dApps that RioDeFi has created itself: RioPay, RioWallet, and RioExchange. With third party developers being encouraged to build on RioDeFi, however, the number of dApps is only set to grow. At first, the main use case for Chainlink’s oracles will be for trading purposes, such as obtaining pricing information when swapping tokens using a DEX or AMM. There are plans afoot, however, for gaming applications to be developed on RioDeFi, where the ability to query a reliable oracle solution will prove valuable.

Other use cases, both for RioDeFi and for Chainlink’s oracles, include prediction markets, a route that Matic Network is currently pursuing with the help of Chainlink. As the RioDeFi ecosystem expands, it is expected that further Chainlink products will be integrated, providing a reliable mechanism for obtaining data from an array of real-world and onchain events.

Image source: DigitalJournal.com

Source: https://www.newsbtc.com/news/company/chainlink-strengthens-polkadot-through-riodefi-oracle-integration/

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Ethereum Nears Inflection Zone, Ready To Crash Below $570

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Ethereum nears inflection zone after it traded to a new yearly high at $636, before correcting lower against the US dollar. Now, the price is showing bearish signs and it could decline even more if there’s a break below the $570 level so let’s read more about it in the latest ETH news today.

Ethereum started a downside correction after it traded at its yearly high of $636. The price was trading below the $600 level and approached the 100 hourly simple moving average. There’s a key bearish trend line forming with the resistance nearing the $590 zone on the hourly charts of the pair with the pair likely to continue to lower it if it fails to stay above the $570 level. There was an increase in ETH above the $600 and the $620 levels with the price breaking the previous swings high and trading to a new yearly high of $636. The bulls had a hard time gaining strength which resulted in a sharp decline below the $620 levels.

eth/usd
Source ETH/USD on TradingView.com

The price broke the $600 support level and moved into the short-term bearish zone but a new low was then formed near the $574 and the price is now consolidating the losses. ETH traded above the 23.6% fib retracement level from the decline at $620 high to the $574 low so it is now facing a strong resistance near the $595 levels. There’s also a key bearish trend line that is forming with the resistance nearing the $590 level on the hourly charts of the pair with a 50% fib retracement level from the decline at $620 high to the $574 low. breaking above these trend lines could start another increase.

eth chart
Image Courtesy of Smokey. Source ETH/BTC on TradingView.

Ethereum nears inflection zone at the next key resistance level of $600 but if it manages to surpass it, it could lead the price towards the $620 resistance in the near-term. If Ethereum fails to clear this trendline resistance, it could suffer more drops with the initial support of $575 being the first target. The main support near this level is now forming so a close below it and the 100 SMA could start a decline to the $550 level or even $530. The hourly MACD for the pair is gaining momentum in the bearish zone, while the hourly RSI for the pair is well below the 50 levels.

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DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/ethereum-news/ethereum-nears-inflection-zone-ready-to-crash-below-570/

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