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Ethereum Whales Buying the Dip But Could It Point to Another Rally?

As small traders sold off their Ethereum positions, the large ones preferred to buy them for cheap. At least that is what the latest Santiment charts showed. The trading sentiment tool found that the number of wallets holding between 1,000 and 10,000 surged, while Ethereum prices were going down. Santiment data shows the number of “whales” […]

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As small traders sold off their Ethereum positions, the large ones preferred to buy them for cheap.

At least that is what the latest Santiment charts showed. The trading sentiment tool found that the number of wallets holding between 1,000 and 10,000 surged, while Ethereum prices were going down.

ethereum, eth usd, cryptocurrency

Santiment data shows the number of "whales" is on the rise as ETH/USD plunges

The cross-referencable data pointed towards accumulation behavior among traders with higher capital exposure in the Ethereum market. They purchased ETH positions when the asset was trading at its weekly low, an act that suggested their underlying bullishness towards the world’s second-largest cryptocurrency by market cap.

Ali Martinez, an on-chain analyst who first spotted the whale accumulation, commented:

“Santiment’s holder distribution chart shows that as Ethereum was falling, there was a spike in the number of addresses with millions of dollars in ETH, colloquially known as whales. Roughly 68 new whales holding 1K to 10K $ETH have joined the network in the past 3 days.

Ethereum Price Action

The ETH/USD exchange rate was down 6.82 percent ahead of the New York opening bell, trading at circa $328.

ethereum, ethusd, ethbtc, cryptocurrency, ethusdt
Ethereum price is continuing its downside move on Monday. Source: TradingView.com
Ethereum price is continuing its downside move on Monday. Source: TradingView.com

The downside move came in contrast with a strong upside recovery yesterday, wherein ETH/USD printed  5.23 percent gains. The flipflop sentiment showed that Ethereum traders are unable to establish a short-term bias for now.

Instead, they watched two key areas to keep their positions intra-range. The first one is below $364 that saw higher selling pressure from daytraders. Meanwhile, the area between $300-324 served as support, a range where traders opened their long positions – spot or derivative.

That practically left Ethereum inside a rough $50 price range. Traders opened short positions at resistance with targets towards support – and they entered long ones at support to target resistance levels. As usual, even those 63 whales Santiment spotted were not enough to establish a bias.

“This price action is pathetic and the worst traders I know are calling bottoms,” said a pseudonymous analyst. “All the signs for proper cleaning. Buying your $ETH $230 down to $100.”

That is true if ETH fails to surge above its crucial resistance levels at $360 and $370. Meanwhile, initial support at $335 already stands broken to the downside.

So far, the whale accumulation has not translated into a rebound. If the situation persists, ETH/USD risks plunging lower to the levels below $250.

Source: https://www.newsbtc.com/2020/09/07/ethereum-whales-buying-the-dip-but-could-it-point-to-another-rally/?utm_source=rss&utm_medium=rss&utm_campaign=ethereum-whales-buying-the-dip-but-could-it-point-to-another-rally

Blockchain

Five Reasons Ethereum Has Entered a New Bull Market

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Ethereum is currently retracting sharply from its previous and 30-month peak of $620. Even with a decline of around $100 to today’s prices of $525, ETH is still up over 300% since the beginning of the year.

The confirmed genesis of the long-awaited Beacon Chain, which is Phase 0 of the even longer awaited Serenity ETH 2.0 upgrade, has no doubt driven momentum but it is not the only strong point for Ethereum.

Over 5 Reasons to be Bullish on Ethereum

DTC Capital’s Spencer Noon has pulled out a few key charts to back up the notion that we are definitely in a bull run for Ethereum.

Active addresses on the network are the first metric as it now has just under 500,000 per day. This is almost double what it was at the same time last year.

In terms of fees paid, Ethereum dwarfs everything else in the crypto space with 80 billion gas now being used on a daily basis. The analyst exclaimed that this is;

“A clear sign that it is the most useful network in the world.”

Over $16 billion in stablecoins have now been issued on Ethereum, a figure that has gone parabolic since the start of this year which is a sign that there is a major demand for digital dollars.

The DeFi effect has been huge as, despite a number of rivals and ‘killers’ emerging this year, Ethereum remains the foundation of the entire ecosystem. Ethereum’s largest use case has gone parabolic as there are now ten times more DeFi users than there were a year ago.

Total value locked across the DeFi space has surged almost 2000% since the beginning of 2020 to reach $14 billion with five billion dollar plus protocols which is a sign that the space is maturing.

And There’s More …

The amount of Bitcoin tokenized on Ethereum is also at record highs with 152,000 BTC, or $2.7 billion worth at today’s prices wrapped on the Ethereum network.

The DEX effect cannot be overlooked either as decentralized exchanges on Ethereum have done $20 billion in volume over the last 30 days. This has brought their combined total to $86 billion this year;

“A sign that DEXs can compete with the top centralized exchanges.”

As reported by CryptoPotato, Ethereum social sentiment and searches are also at their highest levels since early 2018 as the mainstream media and the masses start paying attention.

This latest pullback may settle below $500, but there is little doubt it will provide a buying zone for ETH which still has a long way to go.

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Source: https://cryptopotato.com/five-reasons-ethereum-has-entered-a-new-bull-market/

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Coinbase CEO Fears Rumored Regulations Proposed By The Trump Administration

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Coinbase’s CEO Brian Armstrong has sent a letter to the US Treasury Secretary Steven Mnuchin regarding new rumored regulations on self-hosted cryptocurrency wallets. Armstrong believes that if implemented, the new legislation could harm users and, ultimately, the role of the US in the cryptocurrency financial field.

New Regulations On Self-Hosted Crypto Wallets?

The CEO of the largest US-based digital asset exchange took it to Twitter to outline the potential importance of these regulations if indeed implemented. The rumors indicate that the current Treasury Secretary Mnuchin plans to make them official before the end of his term.

Armstrong explained that self-hosted cryptocurrency wallets (also referred to as non-custodial or self-custody wallets) are “a type of software that lets individuals store and use their own cryptocurrency, instead of needing to rely on a third-party financial institution.”

They enable users to access basic financial services through this technology – “just like anyone can use a computer or smartphone to access the open market.”

Should the proposed regulations become official, they would require financial institutions, including Coinbase, to verify the recipient (owner) of the self-hosted wallet. Meaning, it would collect identifying information on that party before completing the transaction.

According to Armstrong, such requirements would lead to several potential issues because “it is often impractical to collect identifying information on a recipient in the crypto-economy.”

Some of those issues could affect users that send cryptocurrencies to various merchants online or to other people in emerging markets, where “it is difficult or impossible to collect meaningful know-your-customer information.”

Even simpler transactions like upvoting some content on Reddit or transferring an item in a game would also require the verification of the recipient, which makes the process prolonged and complicated.

The US Will Suffer The Most

Armstrong believes that the impact of these “barriers” would prompt US-based users to initiate fewer transactions. This would “effectively create a walled garden for crypto financial services in the US, cutting us from innovation happening in the rest of the world.”

US customers would turn to foreign cryptocurrency companies to access such services, which could put the country’s status as a financial hub at risk in the long-run.

“If this crypto regulation comes out, it would be a terrible legacy and have long-standing negative impacts for the US. In the early days of the internet, there were people who called for it to be regulated like to phone companies. Thank goodness they didn’t.” – added Armstrong.

He also asserted that Coinbase and other cryptocurrency companies have sent a letter to the Treasury last week to articulate these concerns. However, he hasn’t specified if the Treasury has responded in any way yet.

Featured Image Courtesy of Observer

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Source: https://cryptopotato.com/coinbase-ceo-fears-rumored-regulations-proposed-by-the-trump-administration/

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Cointelegraph Consulting: Overwhelming bullish sentiment once again proves costly

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According to data collected from 1000+ crypto social media channels, the average crowd sentiment towards Bitcoin adapted from slightly bullish to overwhelmingly bullish over the days leading up to Thursday’s dramatic pullback, mirroring the levels previously observed during its May and August price tops, respectively. 

The latest findings by Santiment, published in Cointelegraph Consulting’s biweekly newsletter, indicated that with both short-term and long-term Bitcoin holders in a position of +15% and +63% profit, the likelihood of profit-taking became high. To make matters more ominous, the funding rate on Bitcoin’s derivatives market was at a three month high on Bitmex, Kraken, and Binance. The funding rate is the price paid by one side of perpetual contracts to the other, helping to keep the price of contracts trading close to the underlying reference price. A large funding rate is a sign that there is a large increase in long predictions on the exchanges, which can accelerate the frequency of mass-liquidations in the event of a price correction.

Other news from around the legislative and enterprise blockchain world showed fashion is becoming a target for blockchain solutions with VeChain powering a streetwear collection and IBM reaching a partnership with a textile giant. Japanese financial giant SBI announced their Bitcoin lending service, showing that the DeFi lending trend might be leaking into traditional institutions.

Read the full newsletter edition here for more news and signals, complete with detailed charts and images.

Cointelegraph’s Market Insights Newsletter shares our knowledge on the fundamentals that move the digital asset market. With market intelligence from one of the industry’s leading analytics providers, Santiment, the newsletter dives into the latest data on social media sentiment, on-chain metrics and derivatives.

We also review the industry’s most important news, including mergers and acquisitions, changes in the regulatory landscape, and enterprise blockchain integrations. Sign up now to be the first to receive these insights. All past editions of Market Insights are also available on Cointelegraph.com.

Source: https://cointelegraph.com/news/cointelegraph-consulting-overwhelming-bullish-sentiment-once-again-proves-costly

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