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Ethereum Price Analysis: ETH Reservation Demand Is Low Further Fueling Sell Pressure

This time last week, it was all about doom and gloom for Ethereum after a high-volume candlestick drove prices below $200 for the first time this year. Needless to say, ETH prices have since recovered. Though we need to see movements above $300, it’s safe to say that aggressive traders can ramp on longs on every dip in lower time frame with the only deterrence being Sep 5 bear candlestick. This bar continues to overshadow and would likely damp buyers’ efforts in days to come.

Latest Ethereum News

Trading at around $205, ETH is a valuable and a sought-after digital asset. Unlike traditional assets, ETH exists in the inter-web and hot wallets are therefore honey pots for hackers. According to Sagasec, a Cyber security firm that was contracted by MyEtherWallet to oversee the security of the Ether storage platform, the wallets is definitely in the hackers’ cross hairs. Their statistics indicates that they wade off as much as 40 attacks per week according to reports.

Attack vectors vary from fake MyEtherWallet websites to dubious social media advertisements or re-direction from emails targeting gullible ETH coin owners. Regardless, Sagasec has been largely successful. So far, there haven’t been any cases of account holders complaining of lost funds through malicious hacks. This pales in comparison with those of exchanges. Crypto exchanges have so far managed to print more than $550 million in losses.

While MEW is doing a wonderful job, the value of ETH—different from price is a subject of contention. It appears as if Jeremy Rubin did trigger an important topic in the blockchain realm. With his economic abstraction argument and projection that ETH might spiral down to zero, argument is now moving to the reservation demand of ETH. In economics, the reservation demand is how long the owner of currency is willing to hold before exchanging it for goods or service. Economists argue that the recent sell off is sparked mainly by ICO fund managers liquidating their DA fueling the selling frenzy. This means at the moment the reservation demand of ETH is low as ICO project managers aren’t willing to risk stalling their project as ETH prices tank.

Ethereum Price Predictions

Weekly Ethereum Price Charts

On a weekly basis, ETH is on a recovery path. From the level of market participation in the last week, chances are we might see confirmations. Cementing this assertion is the marked increase in trade volumes. That’s besides the long lower wick of last week signaling entry of buyers.

Though sellers have an upper hand and trading within that break out pattern of week ending Aug 12, our Ethereum price prediction depends on the speed at which ETH bulls would drive prices towards $300—our immediate highs in days to come.

After all, prices are trading within that high-volume bear candlestick and technically that means sellers are in charge.

Daily Ethereum Price Charts

Following the confirmation of that morning star pattern mid last week, ETH bulls aren’t slowing down.

So far prices are up seven percent on a weekly basis but discouragingly down six percent in the last day. All in all, our previous Ethereum price analysis holds true.

While risk off traders can begin loading longs at current prices with targets at $250, conservative or risk on Ethereum bulls should wait for conclusive breaks and close above $300 before buying on dips.

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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Ripple Could Launch xRapid Solution ‘In the Next Month or So,’ Says Exec

A Ripple exec told CNBC that the company could launch a commercial version of its payment platform xRapid “in the next month of so.”

Ripple could launch a commercial version of its payment platform xRapid “in the next month or so,” CNBC reported September 17. Head of regulatory relations for Asia-Pacific and the Middle East at Ripple Sagar Sarbhai told CNBC that Ripple has been making strides toward the launch of its product xRapid.

The xRapid product is a real-time settlement platform designed to speed up international payments. Built for commercial use and backed by XRP tokens, xRapid addresses the issue of minimizing liquidity costs and making cross-border payment transactions faster. xRapid claims to significantly reduce the capital requirements for liquidity. Sarbhai said in an interview with CNBC:

“I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production.”

Sarbhai also noted that regulators’ approach to cryptocurrencies has been significantly changing from the narrative of “blockchain good, crypto bad,” to taking a more tempered approach toward digital currencies and seeing the benefits of crypto.

In August, Ripple partnered with three crypto exchanges — U.S.-based Bittrex, Mexican Bitso, and Philippine Coins.Ph — as part of an xRapid solution to build a “healthy” ecosystem of digital asset exchanges. The new partnership will enable xRapid to move between XRP, U.S. dollars, Mexican pesos, and Philippine pesos.

This spring, various financial institutions participated in a pilot of the xRapid platform, which tested payments between the U.S. and Mexico. The participants reported transaction savings of 40–70 percent. In addition to saving on costs, the parties noted an improvement in transaction speed — from the average 2–3 days to “just over two minutes.”

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Mario Draghi: Europe ‘Has No Plans to Issue Central Bank Digital Currency’

The European Central Bank has no intentions of issuing a central bank digital currency. According to its president Mario Draghi, the current economic conditions fail to justify a need for it. 


Cash Remains King

Speaking in front of the European Parliament, the president of the European Central Bank Mario Draghi touched on the matter of cryptocurrencies and whether or not the European Union needs a central bank digital currency.

He outlined a few reasons for why the ECB “has no plans” to issue a unified digital currency.

First off, according to Draghi, “distributed ledgers have not yet been thoroughly tested and require substantial further development before they could be used in a central bank context.”

The president of the bank also noted that a state-run cryptocurrency will put the private banking sector and Central Banks in direct competition:

With regard to the central bank administering individual accounts for households and companies, this would imply that the central bank would enter into competition for retail deposits with the banking sector and lead to potentially substantial operational costs and risks.

However, despite explaining that cryptocurrencies could, in fact, help institutions “meet demands for both the security and digitalization of the economy… (and) could also allow monetary policy to reach a wider range of economic actors more directly,” Draghi also outlined that:

The demand for euro banknotes continues to grow, and cash remains a popular means of payment.

ECB

Others Disagree

While the ECB may have no immediate plans for a state-run cryptocurrency, other countries have already taken the opposite approach.

Bitcoinist reported July 27 that Iran is considering its very own state-issued cryptocurrencies as the country is set to come under renewed sanctions on behalf of the US.

On the other hand, Venezuela, which is currently torn by hyperinflation, decreed the cryptocurrency Petro as an official legal tender. However, numerous reports have since outlined that the usage of said statewide digital currency borders on non-existent.

Do you think the EU needs its own ECB-sanctioned cryptocurrency? Don’t hesitate to let us know in the comments below! 


Images courtesy of Shutterstock.

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COTI launches the Trustchain Protocol for Enterprises, Merchants, and Stable coin issuers

September 17, 2018 – (Tel Aviv) – COTI, the company behind the world’s first blockchain protocol optimized for payments and stable coins, has announced a launch of their Trustchain protocol AlphaNet. The protocol is an end-to-end solution for enterprises, merchants, payments apps’ developers, and stable coin issuers – addressing the downfalls of today’s blockchains. The Trustchain solves the classic problems of blockchain – scalability and transaction costs – while introducing unique features for payments and stable coins, like stability framework and charged back transactions.

The first viable solution of its kind, the Trustchain creates a working proof of trust (PoT) blockchain consensus system and is built on DAG data structure. The Trustchain also introduces for the first time a charge-back mechanisem for cryptocurrencies, multi-DAG structures, smart contracts over DAG and stability frame work to create stable coins.

COTI reports early traction with signed agreements from enterprises and developers.

The launch represents a substantial milestone in the business trajectory of COTI. Conceived as an MVP for the company, the Trustchain protocol is designed and created to provide a system for rapid, trust-based validation of transactions, while at the same time being fully decentralized and very flexible.

COTI has developed a unique algorithm, designed specifically to prevent network spamming, and to help to balance incentives for network participants. The Trustchain is designed to consider the Trust Scores of various users in order to evaluate the level of proof of work (PoW) necessary to confirm a transaction. Depending on the user’s Trust Score, the transaction can confirm in a much faster time. This rapid confirmation based on trust is the foundation of the Proof of Trust (PoT) consensus.

Additionally, the Trustchain introduces a novel solution to prevent double spend attacks on DAG: a robust network of double spend prevention (DSP) node clusters. All the nodes in a cluster dedicated to DSP will be connected to each other strongly, with an optimized protocol designed to increase cluster synchronization.

This DSP solution functions by adding a small number of highly trusted nodes within the network to serve just one purpose – namely, to provide network consensus on whether or not a specific transaction is valid or is a double spend. For any transaction to be validated, it requires the confirmation of a DSP node before it can be considered fully confirmed, while any attempts at double spend are identified, flagged, and refused.

Finally, the Trustchain includes an appeal service for network users, should any fraud of transaction question arise. This unique arbitration platform is designed to build a rolling financial reserve for merchants to be able to cover potential future claims and a whole network Reserve Credit Fund (RCF), built to guarantee this. Both reserve amounts are kept in COTI’s internal currency.

For users interested in learning more, the Trustchain AlphaNet is available for review here. You can also read the company’s informative whitepaper. The code, undergirds and proprietary Trustchain protocol are all available on GitHub.

The post COTI launches the Trustchain Protocol for Enterprises, Merchants, and Stable coin issuers appeared first on CryptoPotato.

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Inspired by Cryptocurrencies, Countries Experimenting with Two-Currency Financial System

While most of the world is still unsure what to make of cryptocurrencies themselves, the technological innovations underlying digital coins like Bitcoin and Ethereum are slowly but surely making their… Continue reading “Inspired by Cryptocurrencies, Countries Experimenting with Two-Currency Financial System”

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