Ethereum struggled to clear the $1,600 resistance and corrected lower against the US Dollar. ETH price is likely to remain stable above $1,450 and it could again climb towards $1,600.
Ethereum corrected lower from $1,600 and tested the $1,450 support zone.
The price is now trading just above $1,500 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $1,480 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to continue higher towards $1,600 as long as it is above $1,450.
Ethereum Price is Holding Gains
Ethereum climbed higher above the $1,550 resistance and tested the $1,600 zone. ETH price topped near the $1,596 level before it started a downside correction.
There was a break below the $1,550 and $1,525 support levels. The price even traded below the 23.6% Fib retracement level of the upward move from the $1,296 swing low to $1,596 swing high. Finally, there was a spike below the $1,500 level and the 100 hourly simple moving average.
Ether tested the $1,450 support zone. It also remained stable above the 50% Fib retracement level of the upward move from the $1,296 swing low to $1,596 swing high.
The price is now recovering and trading nicely above the $1,500 level. There is also a key bullish trend line forming with support near $1,480 on the hourly chart of ETH/USD. On the upside, an initial resistance is near the $1,550 level.
The main resistance is still near the $1,600 zone. A successful close above the $1,600 level is must for upside continuation in the coming sessions. The next key resistance is near the $1,680 level.
Fresh Drop in ETH?
If Ethereum fails to continue higher above the $1,550 and $1,600 resistance levels, it could resume its decline. An initial support on the downside is near the $1,500 level.
The first major support is near the $1,480 zone and the trend line. A downside break below the trend line support and a follow up move below the $1,450 level could open the doors for a sustained downward move towards the $1,400 and $1,350 levels.
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just above the 50 level.
A top cryptocurrency strategist that has gained a large following on social media after accurately calling bitcoin’s 2018 bear market bottom above $3,000 has pointed to two decentralized finance (DeFi) altcoins he believes could soon surge as the crypto market recovers.
The pseudonymous analyst, known as Smart Contractor on social media, told his over 100,000 followers that DeFi blue-chip tokens like Aave’s AAVE and Synthetix’s SNX could appreciate the most over the next leg up as they’ve held relatively well compared to other altcoins in the recent crypto market correction.
Smart Contracter noted that these two altcoins have been making higher lows instead of lower lows, implying they’re ready to move up. He wrote on social media:
#DeFi blue chips like $aave $snx et al. will probably bounce the most seeing as they dumped the least. most didn’t even make LLs but instead making HLs, expecting potentially 30%+ bounces from here.
Aave, it’s worth noting, is the native token of one of the leading DeFi protocols, which allows users to earn interest on their cryptocurrency holdings, or take out crypto-backed loans through the platform.
Synthetix is a platform that allows for the issuance of synthetic assets. These assets are analogous to derivatives in legacy finance, but are built on top of the Ethereum blockchain as ERC-20 smart contracts. They track the price movements of real assets.
The trader then analyzed the top two cryptoassets by market capitalization, Bitcoin (BTC) and Ethereum’s ether, and pointed out he sees a retrace in the coming week, before a final move down occurs and both cryptocurrencies recover. Bitcoin could, as such, hit $50,000 at the beginning of March, before moving below the $40,000 mark.
Ethereum, on the other hand, could move up to $1,600 before moving down to $1,000 where it would find support. From there, the cryptocurrency could stage a recovery to a new all-time high above $2,200.
Bitcoin price recovered above $48,000, but it failed near $50,000 against the US Dollar. BTC is now holding gains above $47,000 and it is likely to make another attempt to surpass $50,000.
Bitcoin is consolidating gains above the $47,000 and $46,500 support levels.
The price is now trading well above $47,000 and the 100 hourly simple moving average.
There is a key declining channel or a bullish flag forming with resistance near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a strong increase once it clears $49,000 and $50,000 in the near term.
Bitcoin Price is Showing Positive Signs
After struggling to clear the $50,000 resistance, bitcoin started a downside correction. BTC declined below the $49,500 and $49,000 support levels.
The price even traded below the 23.6% Fib retracement level of the upward move from the $43,000 swing low to $50,190 high. It even declined below the $48,000 support level. However, the bulls were able to protect the $47,000 support zone.
The price remained stable above the 100 hourly simple moving average, which is currently at $47,100. Bitcoin also remained well bid above the 50% Fib retracement level of the upward move from the $43,000 swing low to $50,190 high.
It seems like there is a key declining channel or a bullish flag forming with resistance near $49,000 on the hourly chart of the BTC/USD pair.
If there is an upside break above the channel resistance, there are high chances of a push above the $50,000 resistance. The next major resistance is near $52,000, above which the bulls are likely to take control.
Fresh Dip in BTC?
If bitcoin fails to continue higher above the $49,000 and $50,000 resistance levels, there could be a fresh decline. The first key support on the downside is near the $47,500 level.
The next major support is near the $47,000 level and the 100 hourly simple moving average. The main breakdown zone is now forming near the $46,500 level, below which the price might dive to $43,000 in the near term.
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $47,000, followed by $46,500.
Major Resistance Levels – $49,000, $50,000 and $52,000.
An Iranian Think Tank Recommends the Use of Cryptocurrencies to Circumvent Sanctions
A think tank affiliated with the Iranian Presidency has unveiled a study report that encourages the use of cryptocurrencies in circumventing sanctions against the country. In addition, the report also claims the government could potentially “generate US$2 million a day and $700 million a year in direct revenue from cryptocurrencies.”
Meanwhile, as reported by one local media outlet, the authors of the report say Iran can increase employment opportunities across its economy if it enables the creation of more bitcoin mining farms. In their report, the authors assert that:
If large mining farms are established, the need to employ manpower for monitoring and repair, security, electrical engineers and technical staff related to hardware and software equipment will increase, which leads to more job opportunities in other sectors.
The authors then go on to suggest that “for every megawatt of electricity consumption about nine people are directly employed.”
However, the report seemingly urges the Iranian government to consider regulating cryptocurrency activities. In justifying this recommendation, the report states that “regulated cryptocurrency activity in Iran might also help to prevent foreign currency from leaving the country.”
Predictably, the report also touches on why cryptocurrency mining provides a unique opportunity for the Iranian government to circumvent sanctions. The report explains:
As the newly-extracted bitcoins are not easily traceable, domestic economic actors can use newly-extracted cryptocurrencies, which are (more) preferable than (those already) existing on international exchanges.
Also in the report, the authors claim that the creation of more cryptocurrency mining farms will help Iran to “reduce electricity losses.”
In their conclusion, the authors urge the Iranian government to enable the “collective mining” of cryptocurrencies as well as the “creation of mining pools next to power plants where possible.”
Do you agree that newly created bitcoins are not easily traceable? You can share your views in the comments section below.
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