Category Archives: Uncategorized

ETH Price Analysis: Here’s the Level Ethereum Needs to Break to Extend Bullish Relief

The bulls have dominated the market for the past few days. A 40% growth in 10 days can surely be interpreted positively, but it’s important to examine all scenarios.

Technical Analysis

By Grizzly

The Daily Chart

The price is currently stuck below the resistance zone on the daily time frame, as shown in the chart. This zone ranges from $1300 to $1500 (in red) and was expected to provide solid support during the sharp collapse earlier in June – which it obviously failed to do. Now, it’s acting as a serious resistance.

On the other hand, buyers have turned the range of $700 to $900 into a support zone (in green).

With this structure in place, one can expect the start of a relief rally if buyers can push the price above the horizontal resistance at $1500. Then the hopes for starting a rally are restored. No significant movement can be expected until the price fluctuates between the two zones marked on the chart. With this said, the most obvious catalyst remains the ETH 2.0 merge.

Key Support Levels: $900 & $700
Key Resistance Levels: $1300 & $1500

Source: TradingView

Moving Averages:
MA20: $1273
MA50: $1680
MA100: $2366
MA200: $3037

The ETH/BTC Chart

Interestingly, the situation against BTC is almost similar to the USD pair. The price is stuck below a resistance zone (in red) in this chart. Breaking this range is necessary to continue the upward trend. The bulls have established a temporary equilibrium over the last two weeks, and if the bears fail to take control of the market, the probability of a short-term rally rises accordingly.

Key Support Levels: 0.050 BTC & 0.0.045 BTC
Key Resistance Levels: 0.06 BTC & 0.065 BTC

Source: TradingView

Open Interest Analysis

Definition: Open Interest is defined as the number of open positions (including both long and short positions) currently on a derivative exchange’s trading pairs.

Increasing open interest (OI), more liquidity, and consequently – that speculation is coming to the derivative market. The increasing trend in OI could be a confirmation of the current ongoing macro price trend.

Source: CryptoQuant

Uptrends have often been accompanied by rising open interest. This index, which has been on a downward trend since early April, has reached its lowest level in a year. Recently, an uptrend can be seen, but its lifespan isn’t extended enough to be considered a strong sign of liquidity entering the market.

CoinFLEX Launches $47 Million Token Recovery Plan to Resume Withdrawals

Last week, cryptocurrency derivatives exchange CoinFLEX joined a growing list of digital asset platforms to halt withdrawals due to market uncertainty and issues with its counterparty. The company has now unveiled a recovery plan that involves the creation of a new token.

CoinFLEX to Raise $47 Million

Announcing the solution on Monday, CoinFLEX said it plans to raise $47 million through the issuance of a new token dubbed Recovery Value USD (rvUSD). The exchange further noted that it has been in talks with “potentially large buyers” who have “significant interest” in the terms offered.

In the rvUSD whitepaper, the firm noted that the issuance price for the new token would be 1 USDC per rvUSD, and it intends to release a total of 47 million rvUSD, amounting to 47 million USDC ($47 million).

The whitepaper further revealed that the issuance is only available to sophisticated investors outside the United States, and the minimum subscription amount is 100,000 USDC. It will start today, June 28, and run until Friday, July 1.

The firm said investors would receive a 20% annual rate (APR) on the new token accrued and paid daily via rvUSD.

CoinFLEX Withdrawal Issues

CryptoPotato reported that CoinFLEX’s withdrawal problems stemmed from an issue involving a counterparty.

The company noted that the counterparty is a high-net individual who owes the exchange after his account turned negative due to the recent market crash.

The firm said it usually auto-liquidates accounts running low on equity at prices before the zero-equity price. However, the individual involved had “a nonliquidation recourse account,” so their position could not be terminated.

“In this case, the Individual had a nonliquidation recourse account, a condition that means they will not be liquidated in exchange for personally guaranteeing their account equity,” the exchange said.

CoinFLEX further noted that the client is a “high integrity person” with a large portfolio and significant stakes in several private unicorn companies.

The firm plans to re-enable withdrawals on June 30, depending on whether it receives funds from the token issuance. The firm hopes to restore its platform to full functionality if it raises the entire sum.

Rumors circulate that Celsius CEO Alex Mashinsky attempted to flee the U.S.

Unconfirmed reports have emerged that Celsius CEO Alex Mashinsky attempted to leave the U.S. last week.

Celsius is battling a liquidity crisis

On June 13, Celsius announced it had implemented a pause on withdrawals citing “extreme market conditions.” Prior to this, some users had reported difficulties in withdrawing funds sparking rumors the company is insolvent.

It later emerged that Celsius had engaged in risky investment practices, leading to trading losses and a shortfall in liquidity.

A consortium led by Goldman Sachs is reportedly interested in buying Celsius’s assets in a $2 billion deal, should the firm file for bankruptcy.

Celsius users continue to slam the company over its handling of the crisis, saying the lack of transparency and infrequent updates present serious concerns.

The last communication from Celsius was a brief notice over a week ago, in which the company confirmed an open dialogue with regulators and authorities. There was no mention of when withdrawals would re-open.

No confirmation from verified sources

On Monday, the co-founder of analytics firm Digital Assets Data, Mike Alfred, tweeted that Mashinsky had tried to board a plane at Morristown Airport, New Jersey, which specializes in private and corporate chartered flights, before being stopped by authorities.

BREAKING: Alex Mashinsky attempted to leave the country this week via Morristown Airport but was stopped by authorities. Unclear at this moment whether he was arrested or simply barred from leaving. Please contact me if you have more information on this.

— Mike Alfred (@mikealfred) June 27, 2022

Alfred and Mashinsky had previously had public spats over the legitimacy of Celsius and its business model and practices.

CryptoSlate reached out to Alfred for comment but did not receive a reply back.

In response to the rumors, @Zach_HODL_ON, who described himself as a “100% pure Celsian HODLer,” tweeted that all Celsius employees continue to work hard “to stabilize liquidity and operation.” While also dismissing reports Mashinsky had tried to leave the U.S.

UPDATE – “Consistent with our previous messages, all Celsius employees – including our CEO – are focused and hard at work in an effort to stabilize liquidity and operations. To that end, any reports that the Celsius CEO has attempted to leave the U.S. are false.”

— Zach (@Zach_HODL_ON) June 27, 2022

Commenting on this, a Twitter user asked why this information didn’t come from Mashinsky or the official company Twitter.

Mashinsky hasn’t tweeted since June 15, when he asked for patience during this difficult time. Likewise, Celsius’s last post was on June 20, in which they gave an update on cooperating with authorities, as mentioned above.

Responding to @Zach_HODL_ON, Alfred questioned how he obtained this information and asked when Celsius customers could access their funds.

If this is true, why is the executive team in hiding?

Are you a paid full time employee of the company or are they just paying you under the table to post this crap?

How about an update on when customers will start receiving their funds back?

That’s what I thought. More BS.

— Mike Alfred (@mikealfred) June 27, 2022

Alfred later claimed a source informed him Maskinsky had attempted to fly to Israel.

Mashinsky was born in Ukraine but moved to Israel as a child. He later moved to the U.S. in 1989.

The post Rumors circulate that Celsius CEO Alex Mashinsky attempted to flee the U.S. appeared first on CryptoSlate.

Is Zero-Knowledge Proof the next big thing in crypto?

Zero-Knowledge Proof (ZKP) will play a significant role in the finance industry and which blockchains and web3 projects become popular as the technology offers enhanced privacy and scalability, according to a recent report by Mina Foundation.

CEO of the Mina Foundation, Evan Shapiro, commented on the survey results and told CryptoSlate:

“ZKPs becoming part of our common language for discussing Web3 solutions marks a major milestone for the technology and for the future of digital data security and data ownership.”

The majority of the sample group were crypto traders (66%), while the rest identified as crypto community members (22%) and developers (11%). Almost all participants knew what ZKPs were, while 80% of the developers said they built with them.

Privacy and scalability

The results showed that scalability and privacy are the most potent applications of ZKPs.

When participants voted for the main advantage of ZKPs, 30.7% chose privacy, 18.2% decided scalability, and 46% chose both. The report states that the slight difference between privacy and scalability indicates that the industry’s attention is shifting towards privacy.

Scalability is one of the main problems of significant blockchains like Bitcoin and Ethereum. Blockchains depend on their hardware and infrastructure for performance. ZKPs can also be implemented to provide more lightweight applications that can run on mobile phones.

ZKP restrains information by definition, and leveraging the technology will allow blockchains to enhance their data privacy capabilities.

Looking for ZKP in crypto

Almost all participants (90.1%) said they find cryptocurrencies that use ZKPs ‘more attractive.’

Even though the illicit activities take up only a tiny percentage of the whole market, they increased significantly in the last year. The turn towards privacy and looking for implemented ZKPs in cryptocurrencies could indicate the rising awareness of scams and attacks.

In addition to cryptocurrencies, 52.1% of the participants said they’d also be more willing to use a dApp with implemented ZKPs.

Shapiro noted these results and said:

“The ZKP Report reveals that ZKPs as a solution for privacy and scalability is now widely understood across the crypto community, which is a stark shift from years past where ZKPs were mostly just a theoretical object accessible only to cryptographers and PhDs.”

Web3, metaverse, and finance

The results also indicated that most respondents believe ZKP is essential to the future of the metaverse, Web3, and the finance industry.
How vital will ZKPs be in Web3 and the Metaverse?

Participants were asked to rate the importance of ZKPs to the Metaverse and Web 3. Most participants — 77.7% — gave ZKP a score of eight or higher on the importance scale.

In addition, 40.6% of the participants said the finance industry could benefit from ZKPs the most. On the other hand, 34.9% said all industries, including finance, health care, social media, e-commerce, gaming & entertainment, and collectibles, could see significant benefits in incorporating ZKPs.

The post Is Zero-Knowledge Proof the next big thing in crypto? appeared first on CryptoSlate.

Glassnode Deems 2022 Bear Market As The Most Atrocious For BTC And All Cryptocoins

According to the details, this year’s bearish market trend is the worst in history for BTC and other coins. It records many BTC traders engaging in panic sell-offs even with losses to ensure they are not drowned.

Volatility is one attribute that marks digital currencies. Unfortunately, it’s a trend that could cause most inexperienced investors to suffer huge losses of funds with their crypto holdings. In most cases, many issues could trigger a bear market. Though some experienced players would use a bear trend to build up their crypto portfolio, a lingering bear market is never profitable.

The 2022 trend seems to be taking the worst historical turn. Glassnode, a blockchain analysis company, has revealed an unfavorable overview of the 2022 bear market. Furthermore, the firm recorded many contributory factors for the prevailing crypto market price drop.

Related Reading | Bitcoin Coinbase Premium Gap Approaches Zero, Selloff Ending?

Chart: GlassNode

The analytic firm reported on crypto market trends tagged A Bear of Historic Proportions. The report, released on Saturday, explained how Bitcoin’s price fall pointed to 2022 as the worst year for BTC.

Some of the listed factors for the BTC bearish trend in 2022 include the following:

Bitcoin’s methodic drop beneath the moving average (MA) of 200 days.
Cumulative realized losses.
Negative shifts from BTC realized price.

According to Glassnode records, BTC and ETH prices became less than their previous all-time high cycles. Such a plunge has never happened in the history of cryptocurrency.

Bitcoin shows some gains on the day chart | Source: BTCUSD on TradingView

Glassnode report indicated the severity of the bear market in 2022 as BTC went below the 200-day MA half mark. Notably, the first and apparent red alert of a bear market is the fall of BTC’s spot price beneath the 200-day MA. Also, it could go beyond the 200-week MA when the situation becomes critical.

BTC Price Falls Below 0.5 Mayer Multiple, MM

Additionally, the analytic firm displayed the extreme conditions of the crypto bear market as the spot price goes beneath the realized price. With the situation’s outturn, many traders are selling off their crypto tokens even as they make losses.

In its illustration, Glassnode revealed that BTC plummeted below 0.5 MM (Mayer Multiple). This level makes it the first price fall to such an extent since 2015. Usually, the MM is a measure of price changes when it’s above or below the 200-day MA.

Related Reading | Bitcoin Whale Presence On Derivatives Still High, More Volatility Ahead?

The implication means over-buying if it’s above or overselling below. Also, the data from the company shows an MM of 0.487 for the 2021-22 cycle against the lowest recorded cycle of 0.511.

The firm maintained that this is a historic occurrence as it’s uncommon for spot prices to go below the realized price. Finally, with an overview of all the negative values in the crypto market, the analytic firm concluded that the market has transited to a capitulation state.

Featured image from Pexels, charts from TradingView.com and Glassnode

FTX debunks rumors of M&A conversations with Robinhood

Crypto exchange FTX denied media speculation that it is looking to acquire Robinhood, Reuters reported.

The statement was made after a June 27 Bloomberg News report claimed the U.S.-based company was in discussions with Robinhood but had yet to make an offer.

M&A rumors

FTX CEO Bankman-Friend, in a statement issued to TechCrunch, said the company isn’t in the process of acquiring Robinhood. He stated:

“We are excited about Robinhood’s business prospects and potential ways we could partner with them. That being said, there are no active M&A conversations with Robinhood.”

Considering that the Bankman-Friend has a 7.6% stake in Robinhood, it is no surprise that the speculations were made.

Robinhood has struggled to maintain a decent form since it peaked in popularity in 2021 courtesy of the meme stock wave.

The trading firm has however seen its revenue fall 48% year over year, from $522 million to $299 million. Likewise, its active users dropped from 17.7 million in 2021 to 15.9 million in March 2022.

However, Robinhood’s shares experienced a 14% surge as the report gained ground before falling nearly 3% in after-hours trading. As of the time of press, the shares are currently trading at $9.

FTX bailing out distressed crypto firms

The extreme crypto market downturn has left several crypto institutions on the brink of collapse. Several companies have announced layoffs and downsized operations amidst rising fears of insolvency or liquidation.

However, FTX has been providing pivotal bailouts to struggling blockchain companies.

On June 21, it was reported that FT had entered talks with BlockFi for the extension of a $250 million credit facility. The distressed crypto lending platform had earlier downsized its workforce to survive the crypto winter.

Likewise, FTX’s CEO Bankman-Friend, through another company of his Alameda ventures, also lent $200 million and 15k Bitcoin to crypto brokerage voyager Digital.

The post FTX debunks rumors of M&A conversations with Robinhood appeared first on CryptoSlate.

Celsius Denies Reports That Company CEO Alex Mashinsky Tried to Leave the US

Reports emerged yesterday claiming that Alex Mashinsky – the CEO of the struggling cryptocurrency lender – attempted to leave the country but was stopped by local authorities. However, the Celsius team refuted these allegations, reaffirming that they continue to work around the clock to find a solution to the recent issues.

CryptoPotato reported the suspicious events going around the popular crypto lender, which decided to halt all services in the middle of the month, including withdrawals. However, this happened only after the company sent $320 million in crypto to the digital asset exchange – FTX.
Since then, the team has remained relatively quiet, with brief messages from Mashinsky – reassuring that everyone is working around the clock to find a solution – and pausing all Twitter engagements and AMAs.
Yet, reports have emerged claiming that the firm had to hire restructuring lawyers and that former investors refused to bail it out.
More recent allegations popped up yesterday suggesting that Mashinsky tried to leave the United States via Morristown Airport but was stopped by the local authorities.
The team behind Celsius has yet to issue an official statement on the matter. However, CryptoPotato contacted them, and they refuted the allegations, saying:

“Consistent with our previous messages, all Celsius employees – including our CEO – are focused and hard at work in an effort to stabilize liquidity and operations. To that end, any reports that the Celsius CEO has attempted to leave the US are false.”