Ethereum Enters Bear Market! Oh No!
After correcting more than 36% and entering a deep bear-market many traders and investors are wondering if Ethereum’s (ETH) run is over. Well, we’re here to tell you there are fundamental forces at play that suggest Ethereum’s bull market is far from over. Not only is the influx of money into the ETH 2.0 Beacon Contract but the influx of money into defi as a whole continues as well. But we’re not here today to rehash what we already know. Today we want to bring to your attention three new developments that only strengthen the bull case for the world’s most advanced blockchain.
1- AWS Goes Ethereum, Finally
AWS, Amazon Web Services, is going Ethereum. The company, an operating segment of Amazon, announced that Amazon Managed Blockchains, a blockchain management service connecting miners and networks among other things, would support Ethereum “out of the box”. With over 8,300 nodes (miners) already in operation, the addition of AWS service should see that figure increase significantly and with it the safety and decentralization of the network. In addition, developers can use the service to launch private networks built on the ETH platform, the use for which it was intended.
“With this launch, AWS customers can easily provision Ethereum nodes in minutes and connect to the public Ethereum main network and test networks such as Rinkeby and Ropsten,” AWS said in a blog post Tuesday. “With Amazon Managed Blockchain, customers get secure networking, encryption at rest and transport, secure access to the network via standard open-source Ethereum APIs, fast and reliable syncs to the Ethereum blockchain, and durable elastic storage for ledger data,”
2 - Ether Investing Going Mainstream
While there are ways to invest in Ethereum funds via OTCC funds there really isn’t a true ETH ETF on the market but that is about to change. The first BTC ETF was listed on the Toronto Stock Exchange last month and there are Ethereum funds in the works right now. The first to file was CI Global Management but there is already a second one in the mix. Evolve Funds Group filed its prospectus for an Ethereum-based ETH this week and it is expected to be approved. The ETF would be based on the price of the ETHUSD_RR index, an index that is repriced once per day based and used by the CME Group for its futures contract.
“Ether is the building block for a revolution in digital finance which is still in its infancy,” said Elliot Johnson, chief investment officer and chief operating officer at Evolve ETFs. “Ethereum is the most actively used blockchain, with ether being used to pay for transaction fees and computational services.”
3 - The EU Approves Ethereum-Based Exchange Under MiFID II
One of the many applications of blockchain is facilitating real-time exchanges of things like stocks, bonds, currencies or other types of tradable vehicles. A group might use Amazon Web Services Amazon Managed Blockchain service to set up such an exchange on the Ethereum network via smart-contracts but that is another story. Getting back on point, the EU just approved a blockchain-based trading exchange built on the Ethereum network under the MiFID II legal framework. The exchange is called CloseCross and has totally automated its trading environment. The platform, much like the CFD platforms of the region, will offer derivative contracts on global indices, cryptocurrencies, FX, stocks, commodities, and interest rates and is expected to go live later this month.
The Technical Outlook: Ethereum Is Getting Ready To Move Higher
Ethereum’s uptrend is not over but there is still some near-term risk in the chart. While the price of ETH seems to have bottomed there is a glaring convergence and extreme peak in the MACD to be worried about. While not always 100% accurate the convergence/extreme peak is not to be ignored and may result in 1) a retest of the recent low or 2) a new low. We lean toward the first scenario but there is something else to consider. The price of ETH is hitting resistance at the short-term EMA and may move lower from here but this market is fickle and momentum is shifting to the upside. There may be a large swing in prices that take ETH above the EMA before it retests the low and ultimately sets a new all-time high.
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