Blockchain

Telegram Messenger has unveiled a self-custodial crypto wallet for its more than 800 million active users worldwide. This move comes almost three years after the popular messaging platform initially revealed its plans to delve into the Web3 space.

The crypto wallet is built on The Open Network (TON) and will be accessible via settings on Telegram’s messaging app. On the back of this announcement, the price of Toncoin (TON’s native token) surged by almost 8%.

Telegram Finally Integrates Crypto Wallet On Messaging Platform

On Wednesday, September 13, The Open Network announced the partnership with Telegram at the Token2049 event in Singapore. This collaboration will provide the messaging platform’s 800 million users access to a self-custodial crypto wallet.

As part of the integration, projects built on the TON blockchain will receive priority access to Telegram Ads, the app’s advertising platform. This was confirmed via an X (formerly Twitter) post by Anthony Tsivarev, Director of Developer Relations at TON.

John Hyman, Telegram’s Chief Investment Officer, commented on this development:

Telegram’s mission has always been to enable freedom of speech, but speech is so much more in this digital age. We believe users have the right to own their identities and assets. With TON Space, users now have the technology to make that convenient. With this announcement, we are putting digital ownership rights in the hands of our entire user base. While also giving TON projects the tools to reach our audience in the largest Web3/Web2 integration there has ever been.

Telegram initiated plans to build a Web3 ecosystem as far back as 2019. Unfortunately, the messaging platform had to cool off its initiative with The Open Network in 2020 due to a lawsuit from the United States Securities and Exchange Commission (SEC).

In 2019, the SEC filed a lawsuit against Telegram for raising $1.7 billion through the initial coin offering (ICO) of a token (called Grams), which the regulatory body deemed as an unregistered security. The messaging platform resolved this issue by paying an $18.5 million fine and returning unused investor funds.

TON Maintains Positive Momentum – Price Overview

In the wake of this announcement, Toncoin registered a nearly 8% price spike. The cryptocurrency currently sits as one of the top gainers in the market today, with a substantial 13% price increase in the last 24 hours.

Interestingly, this latest price movement only underscores the token’s market performance in recent weeks. According to data from CoinGecko, the price of TON has soared by more than 36% in the past month.

This positive performance is even more impressive, considering the sluggish condition of the cryptocurrency market in the past few weeks. Most top altcoins, including ETH, XRP, and SOL, have been struggling due to the current market sentiment.

While the TON token is currently valued at $1.94, seeing if this latest burst of positivity can drive the cryptocurrency above $2 would be interesting.

Nevertheless, Toncoin ranks as the 12th-largest cryptocurrency, with a market cap of roughly $6.68 billion.

Ethereum (ETH)  is facing a challenging period as crypto trader Bluntz predicts further bearish trends before a potential reversal. This uncertainty in Ethereum’s price has sparked discussions in the crypto community, especially in light of recent whale activity.

Crypto analyst Bluntz, known for his insightful market predictions, has raised concerns about Ethereum’s short-term performance. He applies the Elliott Wave theory, a complex technical analysis method, to understand market sentiment and predict future price movements. 

The theory suggests that market trends follow a wave-like pattern, reflecting the ebb and flow of investor psychology. Bluntz believes that ETH will continue to experience a bearish trend in the coming weeks, possibly reaching around $1,440 before wrapping up its correction and rise.

ETH Price: Decoding The Market Psychology

In his recent social media update, Bluntz shared a chart indicating the potential for Ethereum to rally to $2,500 following the expected reversal. This projection highlights the intricacies of Elliott Wave theory, where market sentiment can shift in waves, often influencing cryptocurrency prices.

eth now right back at the lows flirting with a breakdown.

looking for one more low, around $1440 will be a great spot to knifecatch imo if the markets kind enough to give it.$ETH pic.twitter.com/FroPhSL9wk

— Bluntz (@Bluntz_Capital) September 11, 2023

Meanwhile, a significant whale movement in the Ethereum market has left many wondering about its implications. According to WhaleAlert, a whopping 21,938 ETH, equivalent to approximately $34.78 million, found its way into Coinbase’s wallets. Shortly thereafter, another 32,500 ETH, valued at around $51.3 million, was deposited into OKX, a prominent cryptocurrency exchange.

32,500 #ETH (51,334,467 USD) transferred from unknown wallet to #OKExhttps://t.co/WiRrtHHOy7

— Whale Alert (@whale_alert) September 12, 2023

Whale Moves Shake The Ethereum Community

Such large-scale transactions by cryptocurrency whales can send shockwaves through the market, potentially affecting supply and demand dynamics. The sudden influx of ETH into these exchanges raises questions about the intentions of these deep-pocketed investors. Are they positioning themselves for a long-term hold, or do they anticipate price movements that could favor their trading strategies?

Per CoinGecko, ETH is currently trading at $1,596, with a 24-hour gain of 0.7% and a seven-day loss of 2.1%. These price fluctuations underscore the ongoing volatility in the crypto market and the need for investors to stay informed about the latest developments.

Keeping An Eye On Ether’s Movements

Ethereum’s short-term future remains uncertain as it grapples with bearish trends, as predicted by crypto analyst Bluntz. The application of Elliott Wave theory offers a unique perspective on market sentiment. Additionally, the recent whale movements involving significant amounts of ETH add an element of intrigue and uncertainty to Ethereum’s price trajectory. 

Crypto enthusiasts and investors will be closely watching these developments, as they may provide clues about the future direction of the cryptocurrency market.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from DutchReview

SEC Chairman Gary Gensler is on the hot seat as the Senate Banking Committee demands answers and clarity on a range of topics including the commission’s ongoing investigations in the crypto space and Gensler’s belief that cryptocurrencies should be regulated under the securities law. 

Senate Banking Committee Grills Gensler

Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC) was cross-examined by the Senate Banking Committee on Tuesday, September 12. The committee probed the SEC boss for clarification on the commission’s complex rules changes and the ability of these new regulations to address future market failures.  

Following the hearing, a Journalist at Fox Business, Eleanor Terrett, revealed in an X (formerly Twitter) post a list of key points from the hearing between SEC Chair Gary Gensler and the Senate Banking Committee. 

She stated that a variety of topics were discussed in the hearing, with Artificial Intelligence being the primary focus, while cryptocurrency was discussed on a small scale. Nevertheless, Terrett explained that the members of the committee brought to light Gensler’s rule-making pace, and his aggressive pursuit of crypto firms in the industry. 

Republican members of the committee mostly questioned Gensler on his activities in the crypto industry. Some members felt he was encouraging a turbulent environment in the crypto space by enacting new rules and regulations at an excessively fast pace. However, other members felt he was not putting enough effort into positioning the crypto industry under the commission’s heel. 

Gensler responded by saying that the US SEC was enacting rules and regulations at a determined pace much slower than the committee’s previous Chairs. As an example, Gensler explained that he provided the public with a sufficient timeline of 70 days to make comments on the commission’s most recent securities rule which involved climate change. 

When asked about approvals for Grayscale’s spot Bitcoin ETFs, Gensler avoided making any solid statements. However, he emphasized the importance of securities law in regulating digital assets like cryptocurrency and protecting investors in the crypto industry from fraud and risks. 

“I think at the heart of our securities laws is protecting investors against fraud. They get to decide. They get to take the risk. I’m not negative or minimalist about crypto. I just think it would be best if it’s inside the investor protection regime that Congress laid out,” Gensler stated in the hearing. 

The SEC’s Ongoing Battle With Crypto Industry

The ongoing battle with the US SEC and the crypto industry has been dominating headlines for years now. The regulatory commission has been striving to assert its authority and establish clear rules and guidelines for the rapidly evolving crypto sector. 

In its attempt to govern the crypto sector, the US SEC has filed multiple lawsuits against different crypto firms including Ripple, Gemini, and crypto exchanges like Binance and Coinbase. 

In light of this, many crypto industry leaders and political leaders supporting the advancement of cryptocurrency argue that the SEC’s classification of cryptocurrencies as securities stifles innovation and imposes unnecessary restrictions on digital assets. 

In a recent court filing, FTX, the crypto exchange currently navigating bankruptcy, has made last-minute adjustments to its proposal concerning the sale of its Bitcoin and crypto holdings. This move is seen as an attempt to address concerns raised by the US Trustee, the bankruptcy branch of the Department of Justice.

FTX’s initial proposal, which is set to be reviewed in a Delaware Bankruptcy Court today, September 13, aimed to liquidate $3.4 billion in Bitcoin and other crypto assets. The market had been rife with concerns about the potential impact of such a massive sale, fearing it could exert significant selling pressure on an already fragile market.

On August 24, FTX had proposed appointing Galaxy Digital, led by Mike Novogratz, as the investment manager to oversee the sale and management of these recovered assets. The plan allowed FTX to sell up to $100 million worth of tokens per week, a cap that could be increased to $200 million on an individual token basis.

Details Of The Revised Bitcoin And Crypto Sale Proposal

FTX’s revised proposal indicates that the exchange will not be required to issue advance public notice of these transactions due to their potential to significantly influence market prices. This decision comes in light of the fact that the mere prospect of a crypto entity selling up to $100 million of assets weekly has already dampened the sentiment of the market.

The US Trustee had initially opposed FTX’s plan, emphasizing that any intent to sell off significant assets like bitcoin (BTC) or ether (ETH) should be widely publicized to allow others the opportunity to voice objections. In a compromise, FTX has now agreed to keep the US Trustee and committees representing the exchange’s creditors privately informed.

FTX’s holdings, as of August 31, include $1.16 billion in Solana’s SOL, $560 million in BTC, $192 million in ETH, $137 million in APT, $120 million in USDT, $119 million in XRP, $49 million in BIT, $46 million in STG, $41 million in WBTC and $37 million in WETH.

Notably, a significant portion of FTX’s SOL tokens is locked and will only be fully vested between 2025 and 2028. This means any sale would involve a buyer taking over FTX’s vesting contract, negating the possibility of a sudden massive dump of SOL tokens.

Market Reactions And Concerns

Renowned crypto trader Hsaka voiced concerns on X about the potential information disparity. Hsaka pointed out that while market makers and OTC buyers might receive crucial price-moving information, smaller investors could be left in the dark. He tweeted: “So with the new FTX liquidation proposal they wouldn’t issue advanced public notice before they start liquidating assets, but would let members of the creditors committee know. The same committee with a bunch of Market Makers and OTC desks on it?”

While FTX’s last-minute changes to its liquidation plan seem strategic, aiming to minimize potential market disruptions, they also raise questions about transparency. The court order authorizing the liquidation still suggests that the interests of all stakeholders have been considered. However, the Bitcoin and crypto community will be keenly watching Judge John Dorsey’s decision in the Delaware courtroom and the subsequent market reactions.

At press time, BTC traded at $26,124.

The Solana (SOL) community has been closely monitoring the crypto’s price movements as it endures a relentless downward trend. Notably, this corrective phase has adhered to a distinct pattern, encapsulated within two converging trendlines, forming what technical analysts identify as a descending wedge formation. 

Historically, such patterns have acted as precursors to substantial bullish surges upon breaking free from the upper resistance. The question that now lingers in the minds of crypto enthusiasts: Is Solana poised for a bullish turnaround, or should we brace for more market turbulence?

At present, Solana is trading at $17.86, according to CoinGecko data. Over the last 24 hours, it has witnessed a modest decline of 0.5%, contributing to a seven-day slump of 10.4%. The intriguing aspect is that SOL’s price currently hovers near the upper boundary of the descending wedge pattern, a crucial juncture where traders are grappling with substantial selling pressure. 

This position implies that Solana may be poised to either break free from its recent struggles or face further rejection at this trendline resistance.

Awaiting SOL’s Bullish Breakout

For those harboring bullish sentiments for SOL, a prudent approach may be to await a clear breach of the aforementioned resistance. If such an event occurs, it could trigger a rally pushing Solana toward a potential target of $22.21. Beyond that, the cryptocurrency might set its sights on even loftier goals, with price milestones at $25.43 and $32 becoming realistic objectives.

However, it’s essential to note that in the volatile world of cryptocurrency, the bearish sentiment can swiftly gain traction. In such a scenario, SOL could experience a further decline of approximately 11%, potentially targeting the $16.5 price region.

Solana’s Fundamentals Remain Strong

One trader, known as Altcoin Sherpa on the social media platform X, offers a perspective that combines long-term optimism with short-term caution. Altcoin Sherpa views Solana as a fundamentally robust crypto project poised to perform well during the next bull market.

$SOL: Big sell off yesterday, I didn’t catch any of it. Next point of interest is the $17-$15.50 area. Lots of scared investors in regards to a potential FTX holdings liquidation. #Solana https://t.co/7lfzea6XA7 pic.twitter.com/1f8XEJFlES

— Altcoin Sherpa (@AltcoinSherpa) September 10, 2023

Although the trader remains long-term bullish on SOL, the path to bull territory may not be a smooth one, Altcoin Sherpa implied:

“As a network, SOL is still a good one and will probably be a solid bet for the next bull run. I’ve got a long-term bag that I’ll just hold because I expect great multiples on it later on. But in the short term, it’s likely going to be painful.” 

Solana’s price movement remains a focal point of interest in the cryptocurrency community. The descending wedge formation has set the stage for a potentially significant breakout or breakdown, and traders are advised to stay vigilant as the market dynamics unfold.

Whether Solana’s next move is bullish or bearish, the crypto world eagerly awaits to see where this innovative blockchain platform will steer its course.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Morpheus Trading Group

On September 21, Timișoara—Europe’s 2023 Cultural Capital—will host “The Alliance.”

This conference, organized by crypto.ro, aims to be a milestone in blockchain and crypto technology.

Event Vision

“The Alliance,” organized by crypto.ro, is a conference focused on innovation, collaboration, and education. The event aims to accelerate the adoption and development of blockchain technology, both on a local and international scale.

It seeks to bring together industry heavyweights, such as Binance—the world’s largest trading platform—as well as key players from Romania like MultiversX, the country’s most significant blockchain project.

Sponsors and Partners

We are proud to announce our key sponsors and partners for this event, who include Binance, MultiversX, WebIt Labs, and Hodlezz.

Their support has been instrumental in bringing this conference to life.

Renowned Speakers

The event stands out for the presence of top speakers, among which are:

Alex Numeris, Founder and CEO at crypto.ro
Kyrylo Khomiako, General Manager at Binance CEE & CIS
Stefan Szakal, Head of Core Applications at MultiversX
Marius Drenea, CEO at Hodlezz and Co-founder at WebitLabs
Alex Arghirescu, CMO at IXFI

and many other influential names.

Why You Should Attend

The event is estimated to be marked by over 500 international participants, offering networking opportunities, personal and professional development, and access to exclusive opportunities.

Crypto.ro collaborates with major partners, including Binance and MultiversX, to offer memorable experiences and surprises.

This event will not be limited to just discussions and presentations, but will provide participants with an unforgettable experience.

Among the benefits offered are:

Bar
Buffet
Free Merchandise
Party
VIP lounge
Private Dinner

For more information and registration, visit https://events.crypto.ro.

About Crypto.ro

Crypto.ro stands as Romania’s premier media center at the crossroads of cryptocurrencies and blockchain technology. More than just a news outlet, Crypto.ro functions as a comprehensive educational hub.

It offers a wide-ranging library of resources designed to arm both newcomers to the crypto world and experienced investors with the insights needed for informed investment and participation.

The platform’s complimentary crypto academy features structured learning tracks, engaging webinars, and real-time market analytics to further contribute to the adoption of crypto assets.

Further broadening its influence, Crypto.ro Global serves as a multilingual division that makes this wealth of trusted information available to a diverse, international community.

Traditional financial institutions that have filed crypto ETF applications have focused on a particular market (spot or futures). However, a recent NASDAQ application suggests that the asset manager Hashdex is taking a different approach, which could be a game changer in the Ethereum ETF race. 

NASDAQ Proposes To List Ethereum ETF

According to the application filed with the US Securities and Exchange Commission (SEC), the stock exchange plans to list and trade shares of the Hashdex Nasdaq Ethereum ETF, which will be managed and controlled by Toroso Investments LLC.

Interestingly, the fund will hold both Ether futures contracts and Spot Ether. This move from asset manager Hashdex is novel, considering that other asset managers have either applied to offer a Spot Ether ETF or Ether futures ETF or filed applications to offer both separately. However, Hashdex wants to offer a fund holding both Ether futures contracts and a Spot Ethereum ETF.

The fund’s sponsors believe that combining Ether Futures Contracts and Spot Ether will help mitigate the risk of market manipulation (a major concern of the SEC) and provide the market with a “regulated product” that tracks Ethereum’s price. This fund will help US investors gain exposure to Spot Ether without relying on “unregulated products, offshore regulated products, or indirect strategies such as investing in publicly traded companies that hold Ether.”

In fulfillment of the requirement of having a surveillance-sharing agreement (SSA) for the proposed ETF, Nasdaq stated in the application that the Chicago Mercantile Exchange (CME) will be used to track the price of Ethereum as the CME represents a “regulated market of significant size.”

Furthermore, the fund is expected to hold physical Ether. However, the sponsors do not intend to purchase these tokens from “unregulated ether spot exchanges” but from the CME Market’s Exchange for Physical (EFP) transactions.

This move is similar to Hashdex’s application to combine a spot Bitcoin ETF with its existing Bitcoin futures ETF. Hashdex, in its application, stated that the CME will be used to track Spot Bitcoin’s price and that all Bitcoin purchases will be from the CME’s EFP.

Hashdex Throwing Other Asset Managers Under The Bus?

Nasdaq’s application mentions the phrase “unregulated spot exchanges” multiple times in what seems to be a direct attack on Coinbase and the applications of other asset managers. It is worth mentioning some of the other asset managers, including Ark Invest, who have filed to offer an Ethereum-related ETF, have chosen Coinbase as their custodian.

As such, Hashdex labeling Coinbase as an “unregulated spot exchange” doesn’t seem right, as this could undoubtedly influence the SEC’s decision when dealing with these applications.

Furthermore, asset managers like BlackRock picking Coinbase for their SSA and custodian had already sparked controversy as many had stated that the SEC would not be so inclined to approve an application in which Coinbase is directly or indirectly involved since it has an ongoing lawsuit against the crypto exchange.

While many may commend Hashdex’s “innovative approach,” there is a need to be wary of how this approach could hinder the application of others and the eventual effect on the crypto industry in general.   

On September 13th, Arthur Hayes, co-founder and former CEO of BitMEX, delivered a comprehensive analysis of the crypto landscape at Token2049 in Singapore. His insights, which spanned from macroeconomic trends to the intricate dynamics of AI, culminated in a bullish prediction for Filecoin, a decentralized storage solution in the crypto domain.

Why The Bitcoin And Crypto Bull Could Start Early 2024

Hayes began by dissecting the symbiotic relationship between debt, AI, and the intrinsic value of Bitcoin and cryptocurrencies. Historically, he noted, crypto bull markets have been propelled either by fiat currency liquidity or by groundbreaking technological advancements.

However, a simultaneous convergence of these two driving forces has been conspicuously absent. “Over the past decade, one of these two factors has always been the reason we’ve had a bull market in crypto. Yet, we haven’t witnessed a bull market where both were present at the same time,” Hayes remarked.

Assuming that both factors could play out next year, Hayes ventured a bold prediction for the crypto sector’s trajectory. “I believe the next bull market in crypto could commence in early 2024. This could potentially be the most significant bull market not only for cryptocurrencies but also for risk assets since the eras of World War II and the Great Depression,” he stated.

Diving deeper into global economic trends, Hayes highlighted the alarming acceleration of global debt, especially in the wake of the COVID-19 pandemic. He presented a stark picture of the US public debt maturity profile, emphasizing the looming challenges. “What do governments resort to when faced with a mountain of debt that needs issuance, but there’s a dearth of willing buyers at feasible interest rates? The answer is simple: they print money,” Hayes elucidated.

As the discussion transitioned to technology’s intersection with crypto, Hayes identified AI as the prevailing zeitgeist. Drawing parallels with past technological revolutions, he emphasized AI’s transformative potential within the crypto space. He cited the meteoric adoption of AI technologies, such as Chat GPT, and the burgeoning investments in AI-centric firms like NVIDIA as testament to this trend.

Will Filecoin Rise From The Ashes?

Hayes then meticulously connected the dots between AI’s demands and the indispensable role of decentralized storage in the crypto ecosystem. He posited that centralized storage solutions, while prevalent, pose significant risks, especially for burgeoning AI applications.

“Why does AI, a dominant force in the crypto and tech sectors, necessitate decentralized storage? Relying on centralized solutions like Amazon means entrusting vast swathes of data to entities that can unilaterally alter terms, hike prices, or even shut down services, potentially under governmental directives,” Hayes explained.

This line of reasoning led Hayes to spotlight Filecoin, emphasizing its significance in the crypto landscape. Despite its dramatic price decline from its zenith, Hayes championed the untapped potential of Filecoin. “Filecoin’s value in the crypto space isn’t merely speculative. It’s down nearly 99% from its peak of $300 to $3 today. Yet, its tangible utility is evident, with real customers actively using the network and significant data being stored,” he detailed.

Hayes further highlighted his investment in Seal Storage, a Filecoin storage platform. SEAL has undertaken a project named Atlas, associated with CERN, the renowned European particle accelerator. By leveraging SEAL, CERN aims to optimize data costs, and in return, SEAL garners rewards in Filecoin for hosting this data on the network. This synergy isn’t exclusive to CERN.

The University of California, Berkeley, recognizing the potential, has integrated SEAL for analogous purposes. Furthermore, SEAL’s innovative approach has caught the attention of other prestigious institutions, leading to collaborative ventures with NASA and various esteemed universities across the United States.

At press time, Filecoin (FIL) traded at $3.11

XRP, the cryptocurrency associated with the Ripple platform, has experienced a tumultuous ride in recent weeks. The price action of XRP showed that the bears were firmly in control, extinguishing the brief euphoria that followed Ripple’s legal triumph over the United States Securities and Exchange Commission. 

At the pinnacle of Ripple’s legal victory, XRP surged above the $0.80 mark, a level unseen since April 2022. However, this jubilation was short-lived. The excitement fizzled out as XRP’s value nosedived, erasing its gains and plunging it back into bearish territory. The abrupt reversal raised questions about the sustainability of the crypto’s upward trajectory.

Investors, once filled with hope, are now left wondering about the future of this once-promising token.

XRP Market Insights Paint A Grim Picture

Popular crypto trader Benjamin Cowen pointed out on X that “XRP has retraced the entirety of the move that came after the SEC vs. Ripple case.” This statement underscores the market’s sentiment, suggesting that the legal triumph’s positive impact on XRP’s price was only temporary.

$XRP has retraced the entirety of the move that came after the SEC vs. Ripple case.

Narratives do not drive the market, liquidity does. pic.twitter.com/8295jFRdHB

— Benjamin Cowen (@intocryptoverse) September 11, 2023

As of now, XRP’s price hovers at $0.480443, according to CoinGecko, with a modest 2.0% gain over the past 24 hours. However, a more concerning statistic is the seven-day dip, which stands at nearly 5%. This decline reflects the current bearish sentiment surrounding the digital asset.

Since early August, the 1-day chart for XRP has displayed a bearish market trend and a downward movement. Since bulls failed to break through last week’s $0.5 resistance, a revisit of that level could be a good opportunity for short sellers.

Selling Pressure Evident 

A closer look at XRP’s on-chain metrics reveals that the selling pressure has been palpable. The On-Balance Volume (OBV), an indicator that tracks buying and selling volumes, has been in a downtrend alongside the price over the past month. 

This suggests that sellers have been dominant in the market, while buyers have struggled to exert influence, especially in higher timeframes. This scenario further confirms the bearish grip on XRP.

Another metric worth noting is the mean coin age, which measures the average age of coins being transacted on the network. The metric experienced a sharp decline on August 30 and September 1 but has since started to climb higher.

While this may indicate network-wide accumulation, it does not guarantee an immediate uptrend. Investors must remain cautious and observant in the face of uncertain market conditions.

The recent price action of XRP has cast a shadow on the crypto’s prospects. Despite the initial excitement surrounding Ripple’s legal victory, the bears have reclaimed control, driving XRP’s value downward. With key metrics reflecting selling pressure and uncertainty in the market, XRP’s future remains uncertain, leaving investors to ponder their next moves in this volatile landscape.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from The Change Management Blog

Ethereum price is attempting a recovery wave above $1,580 against the US Dollar. ETH is struggling to clear $1,620 and might start another decline.

Ethereum is struggling to gain pace for a move above $1,600 and $1,620.
The price is trading below $1,600 and the 100-hourly Simple Moving Average.
There is a major bearish trend line forming with resistance near $1,600 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start another decline unless there is a close above $1,620.

Ethereum Price Struggles Above $1,600

Ethereum’s price started an upside correction from the $1,530 level. ETH managed to recover above the $1,560 and $1,580 resistance levels, like Bitcoin.

The bulls even pushed the price above the 50% Fib retracement level of the key decline from the $1,670 swing high to the $1,530 low. The price climbed above the $1,600 resistance level and the 100-hourly Simple Moving Average. However, the bears took a stand near the key resistance at $1,620.

Ether failed to clear the 61.8% Fib retracement level of the key decline from the $1,670 swing high to the $1,530 low. There is also a major bearish trend line forming with resistance near $1,600 on the hourly chart of ETH/USD.

Ethereum is now trading below $1,600 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $1,595 level or the trend line. The next resistance is near the $1,620 level. A close above the $1,620 resistance might send the price toward the $1,670 resistance.

Source: ETHUSD on TradingView.com

The next major hurdle is near the $1,720 level. A close above the $1,720 level might send Ethereum further higher toward $1,800.

Another Drop in ETH?

If Ethereum fails to clear the $1,600 resistance, it could start another decline. Initial support on the downside is near the $1,565 level.

The first key support is close to $1,550. The next key support is $1,530. A downside break below $1,530 might push the price further lower toward the $1,500 zone. In the stated case, the price could even decline toward the $1,440 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,550

Major Resistance Level – $1,620