In recent days, Ethereum has experienced a steady rise in its price as crypto traders, global investors rush to have a stake at the fast-growing ETH market. In addition, ETH Miners just recently broke its revenue income since Q3 2018.
Data from Coinmarketcap showed that Ether is now trading above the $ 345 resistance level at the time of this report, its market capitalization presently stands at $38.77 billion.
How Nairametrics tracked the surge;
Recall, some days ago Nairametrics gave an insight on the price levels of Ethereum after it broke out of its long $200-$250 daily range, and further added that it was time to revisit ETH historical model that illustrated the number of times a daily close transition has occurred between psychological support levels.
A close above $300 reveals its 42nd instance of the price closing above or below it.
Meanwhile, ETH miners are having a field day, recording the highest revenue levels (in USD) since Q3 2018. The % of the revenue that currently comes from fees is in a league of its own. The average is between April 2018 to April 2019 and was 3%.
In July, 22.2% of Ethereum miner revenue came from transaction fees. This is the highest monthly value in ETH history and is a continuation of the sharp upwards trend in the past three months.
In July, 22.2% of #ETH miner revenue came from transaction fees.
— glassnode (@glassnode) July 31, 2020
Quick fact: Ethereum is a cryptocurrency designed for decentralized applications and deployment of smart contracts, which are created and operated without any fraud, interruption, control or interference from a third party.
Ethereum is a decentralized system, fully independent, and not under anybody’s authority. It has no pivotal point, and its platform is connected to thousands of its users through their computing systems around the world, which means it’s almost impossible for Ethereum to go offline.
What it means; Like with many other crypto assets, speculating with Ethereum can be highly profitable and has had a good history of giving its investors huge returns. However, there are also many other options to make income from Ethereum. These options include Ethereum mining, Ethereum faucets, and ETH staking.
90% of Ethereum wallets are now in profit
The second most valuable crypto asset records a trading volume of about $13.88 billion.
Most Ethereum holders now have a good reason to smile to the banks. This is because over 90% of the circulating Ethereum supply is now in a state of profit. In other words, the current price is higher compared to the price point at the time the coins last moved.
Last time we saw this level was in February 2018 when the $ETH price was at $925.
Over 90% of the circulating #ETH supply is now in a state of profit, i.e. the current price is higher compared to the price at the time the coins last moved.
Last time this we saw this level was in Feb 2018 when the $ETH price was at $925.
— glassnode (@glassnode) August 3, 2020
Ethereum was trading around $391, as at the time of filing this report. It is the second most valuable crypto asset in the world with a market capitalization of $143.88 billion as well as a trading volume of about $13.88 billion.
Why Ethereum is surging
In an earlier article by Nairametrics, the co-founder of Spartan Black, Kelvin Koh, was quoted as he explained what was responsible for the surge in the ETH market. He said:
“The strong move in Ethereum has to do with the upcoming ETH 2.0 launch which is a major catalyst. Every phase of ETH 2.0 over the next 2-3 years brings ETH closer to its final state and will be catalysts for Ethereum.”
What to look for
Breaking the $400 resistance level represents a dramatic shift for Ethereum, which stood at around the $112 price level in March following the market carnage that occurred as a result of the ravaging COVID-19 virus.
It should, therefore, be noted that Ethereum 2.0 is imminent. This will see the crypto asset switching from the current proof-of-work model to proof-of-stake. It will also optimize sharding techniques which will help hasten up transactions on the blockchain.
Why you should consider selling Bitcoin now
Recent trends and macros surrounding the world’s most valuable crypto asset have shown that investors need to start selling some of their bitcoins for profit.
The facts: BTC rose above the $12,000 price level, roughly about 23 hours ago. But there were warning signs indicating that daily active addresses on the network were not keeping up with the surging price, and that a correction would be swift. A bearish divergence also formed.
Yesterday, the price continued to climb towards $12,000 in spite of DAA dropping from 1.06 million on Friday to 959, 000 on Saturday (-9.5% drop). As a result of this bearish divergence, Bitcoin fell back to $11,000 price levels in a hurry (-8.3% price drop).
READ MORE: Earning BTCs without Having To Pay Money
Warning signs: While crypto exchanges are still sorting out liquidations in the BTC market, one should probably ask what the BTC whales are doing. That sell-off was perpetuated and possibly triggered by an over-leveraged market.
“In the last 24 hours, BitMEX lost the most open interest in Bitcoin futures – about $105M. Followed by OKEx, Huobi, and Binance (all losing more than $50M),” Larry Cermax said.
In the last 24 hours, BitMEX lost the most open interest in Bitcoin futures – about $105M. Followed by OKEx, Huobi, and Binance (all losing more than $50M). pic.twitter.com/HzJeiKxRJg
— Larry Cermak (@lawmaster) August 2, 2020
However, Rafael Schultze-Kraft, Chief Technical Officer at Glassnode, with a detailed diagram, explained why despite the recent plunge, the world’s flagship cryptocurrency still had the bullish momentum in play.
READ ALSO: There are now 18,000 Bitcoin millionaires
“Investors are not moving $BTC at a loss. Adjusted SOPR (hourly chart) is still above 1 despite the sharp price drop, showing no sign of a short-term trend reversal (yet). Closely watching this level,” Schultze-Kraft said.
Investors are not moving $BTC at a loss.
Adjusted SOPR (hourly chart) is still above 1 despite the sharp price drop, showing no sign of a short-term trend reversal (yet).
— Rafael Schultze-Kraft (@n3ocortex) August 2, 2020
Why is BTC volatile? The price of Bitcoin is so volatile because of its high use for financial gain and speculating advantages used by global investors and crypto traders. As such, individuals and hedge funds sell and buy Bitcoins as they would do for any other financial asset (stocks, bonds) with regulatory limitations.
What you should do: Nairametrics advises cautious buying in this fast-growing financial asset, as high market volatility could expose you to significant losses. It’s highly recommended you seek advice from a certified financial advisor when buying these crypto assets.
Bitcoin price drops $1400 in minutes
BTC initially surged in trading $12,112 in the early hours of trading on Sunday morning.
Bitcoin reminded investors of its high volatility in the world’s biggest crypto market as it lost about $1400 in just 30minutes, a few hours ago.
BTC, the world’s biggest crypto asset by market value, initially surged in trading $12,112 in the early hours of trading on Sunday morning, reaching $12,000 since August 2019. Data from Coinmarketcap showed it plunged to about $10,638 30 minutes after that high.
“Clearing resistance at $10,000-$10,500, which coincided with the downtrend line from the late 2017 highs and first-quarter 2020 highs, established a higher high for Bitcoin confirming a new tactical uptrend,” according to Rob Sluymer, the technical strategist at Fundstrat Global Advisors LLC.
Bitcoin’s plunge was bad news for the bulls. By falling back around the $11,000 psychological support, it has shown a likely downward trend as investors start to close their positions.
READ MORE: There are now 18,000 Bitcoin millionaires
Why it happened: The price of Bitcoin is so volatile because of its high use for financial gain and speculating advantages used by global investors and crypto traders. As such, individuals and hedge funds sell and buy Bitcoins as they would do for any other financial asset (stocks, bonds) with regulatory limitations.
What you should do: Nairametrics advises cautious buying in this fast-growing financial asset, as high market liquidity can expose you to significant losses and loss of funds. It’s highly recommended you seek advice from a certified financial advisor when buying these crypto assets.