Why Ethereum price corrected sharply despite today’s Eth2 milestone

The price of Ether (ETH), the native cryptocurrency of Ethereum, plunged harder than Bitcoin (BTC) in the recent pullback. 

After reaching an all-time high on Coinbase, the price of Bitcoin fell steeply by over 9% within several hours. In the same period, Ether corrected by over 11%, following a marketwide pullback.

The deep correction in Ether comes as a surprise because of the Ethereum 2.0 network upgrade launch. On Dec. 1, the Eth2 Beacon Chain released on the mainnet, marking an important milestone for Ethereum.

ETH/USDT 4-hour chart. Source: TradingView.com

What led to Ether’s sharp correction?

Eth2 is a key network upgrade for the Ethereum blockchain that improves its scalability and transaction capacity. Prior to the upgrade, the network was able to process around 15 transactions per second.

After the upgrade, Ethereum will be able to scale to thousands of transactions per second, potentially more with sharding over the long term.

This is a fundamentally optimistic upgrade for the Ethereum network because it will allow decentralized applications to operate without the barriers of scalability. It would also allow new decentralized finance cycles to become more sustainable, easing user experience.

Ether’s correction after the Eth2 upgrade could have been expected due to the tendency of the market to buy rumors and sell the news. For instance, when the Eth2 upgrade was confirmed in late November, Ether price similarly dropped from around $620.

Still, the 11% decline in the price of Ether within just two hours has caught many traders off guard. The significance of the Eth2 upgrade and the implications it carries likely led the market to expect more short-term resilience from Ether.

Industry executives have also been highly optimistic about the medium- to long-term growth trajectory of Ethereum after the Beacon Chain release. This likely added to the overall positive market sentiment around ETH.

Joseph Lubin, co-creator of Ethereum and founder of ConsenSys, described Eth2 and proof-of-stake as a monumental upgrade. He said:

“The launch of the #Eth2 Beacon Chain is characteristic of the emergent, open-source ethos that attracts so many to Ethereum in the first place. More than 27,000 validators from around the globe are now participating in the new #Eth2 consensus model. Proof of Stake is a monumental upgrade of the crypto-economic incentives that already make Ethereum an automated, objective foundation for trust. We are collectively deepening the commitment to building a maximally decentralized network.”

What’s next for Ether?

Traders are anticipating a deeper pullback in the near term, or at least some consolidation. The futures market took a large hit when BTC abruptly dropped, causing havoc across the derivatives market.

A pseudonymous trader known as “TraderKoz” said that Ether would become compelling once it consolidates above $620 again. The $561 level remains a key support level for ETH in the near term if the pullback continues. The trader said:

“We’re getting some nice PA forming around Monday’s range and a nice tag of the weekly open. Wouldn’t be surprised if we consolidate around the midrange here for a bit. I’ll be interested in more longs once we trade above $620.”

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source https://cryptonews.wealthsharingsystems.com/2020/12/why-ethereum-price-corrected-sharply-despite-todays-eth2-milestone/

US Sports Betting Growth and Expansion • This Week in Gambling

Half of all the states in America now regulate betting on sports, and more are sure to follow. This week we look at the gambling news of US sports betting as it continues to grow and shatter records!

Hello players! Thanks for joining me on This Week in Gambling. I hope everyone had a wonderful Thanksgiving, and if you have any room for leftovers we’ve got a full plate of sports betting news to cover from seven different states! So let’s get right into it with this week’s big stories!

A few weeks ago we spoke about sports betting in the state of Colorado which just launched in May of this year but continues to explode. In fact, just for the month of September. their activity was up over 60%! And if you think that’s good, Tennessee just launched sports betting in November and they saw over $27 million wagered in just their first week of operation! Over half of the bets were on NFL football games… and over half of the NFL bets were that Cris Collinsworth would say something stupid during the Sunday night football broadcast! There were a lot of winners that week!

And if you think that’s good, Indiana sports betting just posted another record month up over 150% from the year before and bringing in over $230 million! And if you think that’s good, betting on sports in Illinois brought in over $285 million just in the month of September! And believe it or not that was only their third month of operation!

And if you think that’s good, betting on sports in Pennsylvania continues to shatter records! They brought in over $525 million just in the month of October, bringing their two-year operational total to $4 billion! And… (say it with me) if you think that’s good, New Jersey sports books just recorded their first ever $800 million month! Up over 60% from just the year before! And if you think that’s good… yeah that’s pretty freaking good!

Of course, not all the news was good this week. In fact, there’s one state out there where sports betting legislation just failed miserably! We’ll talk about that in just a moment, but first this week’s question: With the continued expansion of sports betting in America, which sports offer the betters the most opportunity for fun and profit? You can leave your answers below this video in the comments area and maybe we’ll feature your reply.

This week we do have two new online game reviews to share with you the first one is for the Hyperburst Online Slot from Yggdrasil, a six real game with 25 pay lines that comes with wild symbols, a bonus round and hyper re-spins. Also the Stars Megaways slot from Blueprint Gaming, a six reel game that comes with up to 117,649 pay lines. Both reviews are available right now on our YouTube channel, and please support us by subscribing.

And finally this week, one state where sports betting is not doing so well is Massachusetts. Their state senate just shot down legislation that would have regulated the activity there. Why? Coronavirus! What???

After the House approved betting on sports the Senate rejected the measure without even having a roll call vote. They said that there were more important issues for them to deal with, like COVID-19. Although, it’s estimated that approving sports betting could have brought the state about $30 million a year… and hey that would have been a hell of a lot of vaccinations. But what do I know? I’m just some jerk with a YouTube show.

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source https://cryptonews.wealthsharingsystems.com/2020/12/us-sports-betting-growth-and-expansion-%e2%80%a2-this-week-in-gambling/

XRP Could Target a Move to $1.80 as Technical Strength Flourishes

XRP has been one of the most surprising beneficiaries of the recent market-wide uptrend, with the previously embattled cryptocurrency exceeding Bitcoin’s gains over a short time frame while also outpacing Ethereum and other major altcoins.

Its strength came about following the break above a multi-year trading range that it has been stuck in between $0.20 and $0.30. Once $0.30 was flipped into support, it began its parabolic ascent.

Its momentum is now slowing down due to a few key resistance levels, but where it trends next will likely depend on whether or not Bitcoin and the rest of the crypto market can find some stability.

Both BTC and ETH have seen some immense turbulence throughout the past 24 hours, with bears fading the benchmark crypto’s all-time highs and causing the aggregated market to show some signs of weakness.

Unless Bitcoin gains stability, altcoins like XRP may struggle to extend their newfound momentum.

Nevertheless, one trader is expecting XRP to see some immense gains in the near-term, pointing towards $1.80 as a potential upside target in the near-term. He does note that it may first find some resistance around $1.12.

XRP Stagnates as Bitcoin Struggles to Set New Highs

Yesterday was a wild day for Bitcoin and the entire market. After facing an intense selloff that sent BTC reeling down to lows of $16,400 last week, BTC bulls stepped up and pushed the crypto to fresh all-time highs of $19,800 on many exchanges yesterday.

The selling pressure here was quite intense and caused the entire market to turn lower, with bulls ardently trying to absorb this selling pressure today.

Naturally, XRP was impacted by this volatility as well. At the time of writing, the cryptocurrency is trading down over 7% at its current price of $0.62. This is around where it has been trading throughout the past few days and weeks.

Trader Claims the Token is Still Poised to Explode Higher

While sharing his thoughts on XRP’s current outlook, one trader noted that he remains firmly bullish on its near and mid-term prospects.

He stated that a move up towards $1.12 could come about shortly, followed by an explosion towards $1.80.

“XRP: Aped in. Targets 1.12 and 1.8,” he concisely noted while pointing to the chart seen below.

Image Courtesy of Livercoin. Source: XRPUSD on TradingView.

If XRP reaches his upside target, it will mark a nearly 3x movement from where it is currently trading at.

Featured image from Unsplash.
Charts from TradingView.

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source https://cryptonews.wealthsharingsystems.com/2020/12/xrp-could-target-a-move-to-1-80-as-technical-strength-flourishes/

Polk vs. Negreanu: Polk Cruising Up Almost $600K

3 reasons why Bitcoin price violently rejected near $20,000

Bitcoin (BTC) finally managed to secure a new all-time high, but the digital asset rejected strongly near $20,000. On-chain analysts say a sell-off from whales and miners, combined with the $20,000 level acting as a resistance level caused a fierce drop.

BTC/USD 15-minute chart. Source: TradingView

What led whales and miners to sell Bitcoin?

For whales and high-net-worth investors, liquidity is the most important factor. Because they deal with large orders, they need to calculate the slippage their sell orders will cause.

Typically, the best period for whales to sell is when there is peak euphoria in the market met with large buyer demand. This allows whales to more efficiently sell their holdings without causing massive volatility.

When the price of Bitcoin officially surpassed its all-time high on Coinbase, it caused the market sentiment to become highly bullish. Shortly thereafter, whales started to sell, causing large liquidations across major exchanges.

CryptoQuant CEO Ki Young Ju explained that whale withdrawals were slowing down on Nov. 30. He said:

“I called short-term bearish based on miner-selling, whale activeness on exchanges, and no whale withdrawals. But I knew enough exchange stablecoin reserves would break $20k by this year. If ATH rejection happens, it could be a huge pullback as whales would sell BTC heavily.”

The confluence of whales keeping BTC on exchanges, which means higher selling pressure, and the sell-off from miners amplified BTC’s downturn.

Ki also noted that whales began to deposit Bitcoin into exchanges once again, which happens when whales want to sell their holdings.

Whales are depositing $BTC
+ Miners are selling $BTC
+ No exchange withdrawals from whales
+ $20K rejection
= Huge pullback ($19.9k -> $18k) https://t.co/F1n7ypl4kT pic.twitter.com/NnJJxzIcAV

— Ki Young Ju 주기영 (@ki_young_ju) December 1, 2020

Is the current recovery just a dead cat bounce?

The price of BTC recovered swiftly after dropping to around $18,200, surging back above $19,400 within hours.

The speedy recovery likely occurred due to the nature of the drop. As the price declined, exchanges saw cascading long liquidations. As such, BTC likely dropped harder than it should have if it weren’t for the large liquidations.

The recovery was equally intense to the upside for that reason. Late short-sellers could have gotten aggressive as BTC dropped, leading to a short-term short squeeze.

In the near term, Bitcoin could see two major scenarios. First, it could consolidate above $19,000, which would allow the derivatives market to find composure and the open interest to rebuild.

Second, BTC could continue to drop as traders anticipate a blow-off top after achieving an all-time high.

But the macro outlook on Bitcoin still remains highly optimistic. Scott Melker, a cryptocurrency trader, emphasized that the monthly candle for November closed at BTC’s all-time high, which paints a positive long-term picture for BTC. He said:

“Last month closed right at the previous all time high monthly candle close. This month closed right at the all time high. Really impeccable chart.”

In the near term, the key support levels for Bitcoin are $18,200, $17,700 and $16,200. There are still large whale clusters in these areas, which could cause a reaction from buyers.

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source https://cryptonews.wealthsharingsystems.com/2020/12/3-reasons-why-bitcoin-price-violently-rejected-near-20000/

Bitcoin Posts “V-Shaped Recovery” as Bulls Erase Overnight Losses: What’s Next

Bitcoin just posted another shocking price movement, with the cryptocurrency’s latest rejection at $19,800 sending it as low as $18,300 this morning before bulls stepped up and reversed its downwards momentum.

This caused the cryptocurrency to erase nearly all of the losses that came about due to this recent movement, with buyers once again targeting a move up towards its $19,800 resistance.

This “V-shaped recovery” significantly bolsters the cryptocurrency’s underlying strength, as it indicates that bears are plagued by underlying weakness at the moment due to their inability to gain any control over the crypto’s price action.

This latest bear-trap was also fundamentally healthy, as it reset sentiment, shook out over-leveraged long positions, and could indicate that further upside is imminent in the near-term.

One trader is now pointing to the price region just above where BTC is trading as a potential reversal zone for this rebound.

He believes that the recovery posted over the past couple of hours is getting “overcooked” and will be followed by further downside.

Despite this sentiment, the fact that bears have been unable to spark any meaningful trend shifts over the past several weeks does indicate that bulls could be well-positioned to see further upside in the days and weeks ahead.

Bitcoin Erases Overnight Losses as Bulls Roar

At the time of writing, Bitcoin is trading down just over 1% at its current price of $19,400. This marks a nearly full erasure of the losses that came about overnight as a result of the selling pressure see at its $19,800 highs.

These 24-hour highs marked an all-time high across many platforms. Naturally, bears attempted to fade this move and briefly gained control over its price action.

They even sent it as low as $18,200 this morning before bulls stepped up and reversed the downtrend.

Analyst Claims BTC’s Rebound May Be Getting “Overcooked”

While sharing his thoughts on where Bitcoin might trend in the near-term, one analyst explained that he expects its uptrend to stall around its current price level and begin reversing back into bears’ favor.

“My brave little line provided support, but I think this is cooked. Will probably attempt to short around the golden pocket.”

Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.

Typically, V-shaped recoveries are followed by massive upside movements, which could make this theory somewhat unlikely.

Furthermore, each test of the upper-$19,000 region degrades the resistance here, which could mean that it is only a matter of time before it is shattered.

Featured image from Unsplash.
Charts from TradingView.

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source https://cryptonews.wealthsharingsystems.com/2020/12/bitcoin-posts-v-shaped-recovery-as-bulls-erase-overnight-losses-whats-next/

MSPT to Close Out Season 11 w/ Grand Falls Main Event ($200K GTD) Dec. 18-20