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Ethereum Ready for Freefall? 30% Correction After $490 Peak

Ethereum broke below its bullish support level at $370, dipping 13.2% on Saturday, adding to a 20% drop before the weekend beginning on Wednesday. The price action broke through the 50-day exponential moving average at $367, solidifying a further drop.

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Ethereum Ready for Freefall? 30% Correction After $490 Peak | Crypto Briefing
















If the DeFi bubble pops, Ethereum prices are at risk of going into freefall as Ether rushes back into circulation.


Key Takeaways

  • Ether dropped 36.8% from its peak on Sept. 1 to a recent low of $309
  • On-chain metrics suggest that the bull run that began in March seems to be coming to an end
  • While sellers are waiting to short the bounce, buyers’ expectations rely on the expansion of the DeFi space on Ethereum

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Ethereum broke below its bullish support level at $370, dipping 13.2% on Saturday, adding to a 20% drop before the weekend beginning on Wednesday. The price action broke through the 50-day exponential moving average at $367, solidifying a further drop.

ETH Support and Resistance Levels 

A break below support at $288 would intensify the sell-off, with the next significant level of support at the 200-day exponential moving average at the $273 mark.

ETH/USD 1-day ascending channel
ETH/USD 1-day chart by TradingView

As the breakdown below $380 began, ETH trading volumes increased tremendously, second only to the crash on March 12. If prices consolidate around $340-370, this may raise questions around the continuation of ETH’s uptrend. However, if the upwards price movement holds, the ascending channel’s continuation predicts $550 Ethereum around mid-September.

The weekly chart shows that $355 is an important support level for further gains. A weekly close below this level could drive prices back into its historic $152-$355 range.

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ETH/USD weekly chart by TradingView
ETH/USD Weekly Chart on Bitstamp Source: TradingView

According to cryptocurrency analytics firm Glassnode, perpetual swap open interest on derivative exchanges has dropped nearly 50%. On Sept. 1, there was $827 million in notional value outstanding in these contracts, down to just under $450 million at time of writing. These numbers represent a drawdown in leverage, indicating that large traders anticipate greater price volatility.

The funding rate for margin orders also points to indecision about Ethereum’s next move. The funding rate went from 25.5% annually to near zero, indicating that traders are unsure which way prices will head.

The Strong Hand Indicator

The Spent Output Profit Ratio (SOPR), an on-chain oscillator measuring the ratio between the price at which ETH is spent to the value at which it was added to an address, points to more pain for prices.

SOPR values normally pivot around 1, representing the long-term trends of the market. SOPR rejects values under 1 as holders demonstrate strong hands by refusing to sell at pullbacks in an uptrend. The opposite happens during a bear market as traders look to short bounces, and investors are forced to sell at a loss.

On Saturday, the ratio flipped significantly below the watermark for the first time since confirmation of ETH’s bullish trend in April, when prices were around $185.

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The subsequent price action at the bounce will likely determine the upcoming trend price trend. A bounce above $370 will bring the SOPR value back to 1, putting more energy behind Ethereum’s next leg up. If it rejects values around 1, drifting to lower values, then prices are more likely to continue deflating.

Spent Output Profit Ratio for Ethereum by Glassnode
Spent Output Profit Ratio for Ethereum. Source: Glassnode

Ethereum Locked in DeFi

The total Ethereum locked in DeFi has nearly tripled since August. ETH’s inflow into these financial protocols was largely driven by the craze around yEARN’s ETH vault and other similar DeFi instruments. Now, yield farmers are pulling their Ethereum out of DeFi, putting more ETH back into circulation and subsequently pushing prices further down.

Total ETH locked in DeFi
Total ETH Locked in DeFi Source: DeFiPulse

Nevertheless, the percentage of revenue earned by miners from fees vs. block rewards is still at 62%, which averaged around 10% prior to the boom in DeFi. It seems that network usage is still around peak levels despite falling prices.

As such, there is still hope that Ethereum’s bull run will resume. But any slowdown in the growth of DeFi threatens to crash the demand for ETH, leading to deeper sell-offs.

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Source: https://cryptobriefing.com/ethereum-freefall-30-correction-490-peak/

Blockchain

SingularityNET Partners With Ocean Protocol Prior to the AI-Based DeFi Fund Launch

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[Press Release – Amsterdam, Netherlands, 18th May 2021]

SingularityNET’s first DeFi spin-off project, SingularityDAO, is announcing today their partnership with leading decentralized data provider Ocean Protocol.

The collaboration will see the OCEAN token’s inclusion in SingularityDAO’s index fund/investment portfolio. Moreover, SingularityDAO is designed to leverage AI at multiple levels: AI manages dynamic token-sets, executes predictive market-making strategies to provide liquidity for these token-sets on DEXs, and predictively models hedging strategies.

All this AI requires a lot of data to learn and improve, which is why SingularityDAO is a natural user of Ocean data sets – data sets published via Ocean Market (and other Ocean-based markets) into the Ocean ecosystem. The Ocean ecosystem is host to many diverse and varied trading and DeFi data sets. These make excellent candidates for consumption by SingularityDAO’s AI agents to enhance its financial modeling.

I’m really excited by the opportunity to work together with Ocean Protocol, one of the most respectable projects in crypto that has been constantly delivering community-driven, decentralized data solutions. SingularityDAO will constantly make use of data to train our ML and I can’t think of a better partner than Ocean Protocol. – Marcello Mari, CEO at SingularityDAO

The news follows the successful completion of a total of $5.2 million raised in three different rounds for the highly anticipated Governance Generation Event on MANTRADAO, which reached its hard cap within less than 2½ hours.

The protocol, described as ‘DeFi meets decentralized AI,’ held the event exclusively for SingularityNET $AGI holders and attracted 5,800 registrations in one week. The token sale raised $1.6 million (8,000,000 SDAO).
The successful Governance Generation Event follows a recent private sale wherein SingularityDAO raised $2.7 million of funding from a number of top-tier investors such as AlphaBit, Marshland Capita, GBV, and SMO Capital. SingulariyDAO’s governance token has been generated on May 13th and distributed on the same day. It is currently trading on Uniswap.

About SingularityDAO

SingularityDAO is a decentralized platform, governed by the SDAO token, tasked with governing DynaSets. DynaSets are diversified baskets of cryptocurrency assets dynamically managed by AI and curated by the protocol. SingularityDAO brings the financial sophistication of AI-managed funds to DeFi, deploying SingularityNET’s AI technology to navigate complex markets.

About Ocean Protocol

Ocean Protocol’s mission is to kickstart a Web3 Data Economy that reaches the world, giving power back to data owners and enabling people to capture value from data to better our world.
Data is a new asset class; Ocean Protocol unlocks its value. Data owners and consumers use the Ocean Market app to publish, discover, and consume data assets in a secure, privacy-preserving fashion.

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Source: https://cryptopotato.com/singularitynet-partners-with-ocean-protocol-prior-to-the-ai-based-defi-fund-launch/

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Bought the Dip? MicroStrategy Purchased $10M in Bitcoin at $43.6K

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Michael Saylor’s NASDAQ-listed company continues with its initiative to purchase sizeable amounts of bitcoins at frequent intervals. The firm said earlier today it had allocated another $10 million in cash in BTC, and its total stash is over 92,000 coins.

  • The founder and CEO of the business intelligence giant announced the latest purchase on Twitter earlier on May 12th.
  • It reads that the firm has bought 229 bitcoins for $10 million in cash at an average price of $43,663 per coin.
  • Keeping in mind the multiple purchases made since August 2020, the firm holds 92,079 bitcoins. MicroStrategy has paid $2.251 billion for its stash, with an average price of $24,450 per token.
  • Although this is far from being the largest single acquisition, as the company once bought more than $1 billion worth of BTC, this one actually comes in a compelling moment.
  • In fact, buying 10 million coins at an average price of $43,663 means that MicroStrategy has taken advantage of a popular narrative in the crypto community – buy the dip.
  • The price of the primary cryptocurrency has suffered severely in the past week or so after Elon Musk announced that Tesla has stopped receiving BTC payments for its electric vehicles.
  • In a matter of days, bitcoin fell from over $58,000 to a three-month low of $42,000.
  • Although losing $16,000 of value in less than a week could be considered a major blow, and some investors disposed of their coins even at a loss, MicroStrategy has reaffirmed its promise to continue buying bitcoin as part of its reserve treasury strategy.
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Source: https://cryptopotato.com/bought-the-dip-microstrategy-purchased-10m-in-bitcoin-at-43-6k/

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JPMorgan’s Securities Services to Offer TradingHub’s Analytics Solutions

The Bank is planning to offer trading analytics solutions to its buy-side clients.

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TradingHub, a trade analytics services provider to the global financial markets industry, today announced that JPMorgan, one of the leading investment banks worldwide, will offer TradingHub’s trading analytics solutions to its institutional clients.

According to the official announcement, JPMorgan’s new offering will include TradingHub’s Transaction Efficiency and Accuracy Monitor (TEAM) solution. TradingHub is currently providing trade analytics services to several investment banks and investment management firms worldwide.

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TEAM is a new tool by TradingHub that enables financial services companies around the world to evaluate execution costs at the order, trade, instrument, or asset class-level, and compare against peers on an anonymized basis.

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Commenting on the latest announcement, Neil Walker, Chief Executive and Founder of TradingHub, said: “We are delighted JPMorgan has identified TEAM as a highly novel and valuable product and is giving its clients access to our market-leading trade execution analytics service. This important relationship with JPMorgan will give more asset managers access to our services in a seamless and efficient manner via its open platform.”

JPMorgan has accelerated its global partnerships since the start of 2021. The US-based financial services provider recently partnered with Singapore’s DBS Bank and Temasek to develop a new blockchain-based platform for cross-border payments.

Transparency

TradingHub mentioned in the latest announcement that the main focus of TEAM is to facilitate buy-side firms in the identification of financial brokers providing the best execution. TEAM also provides greater transparency to sell-side institutions. “Providing clients with access to unique services which help them manage transparency across the trade lifecycle is more important than ever. We’re excited to be working with TradingHub and offer TEAM as part of our growing platform,” Richard Crozier, Head of Product for Data and Analytics at JPMorgan Securities Services mentioned in the official announcement.

JPMorgan is planning to facilitate buy-side clients by providing integrated solutions through an open platform. In the last quarter, JPMorgan posted strong growth in revenues and profit.

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Source: https://www.financemagnates.com/institutional-forex/jpmorgans-securities-services-to-offer-tradinghubs-analytics-solutions/

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