ONLINE FOREX BROKER
2022-12-15 • Updated
On August 5, Ethereum, the second-largest cryptocurrency under Bitcoin, will undergo a major update. The update named London includes a cryptocurrency Improvement Proposal (EIP 1559). The main goal of this update is an improvement of transaction fees. Currently, users bid an amount of money they are ready to pay for transactions. It makes procedure costs extremely high. According to the information about an update, from now on, an automated system will calculate fees by itself according to the system’s workload. It will reduce costs for Ethereum users and make this payment method more affordable.
Another influential change under EIP-1559 is that part of every transaction fee will be burned, or removed from circulation, which will begin to reduce the supply of ether and potentially boost its price.
After this update, Ethereum will become a more popular method of making transactions between users as high commissions are the main problem that makes the crypto community prefer using BTC to ETH as a payment method.
Moreover, after an update, Ethereum will be the deflationary asset as burning Ethereum fees after transactions will lead to the supply reduction.
These facts will make Ethereum a perfect haven asset, which will be extremely popular during the upcoming rise of US inflation.
ETH/USD 4H Chart
On the 4H chart, Ethereum broke through an extremely important support level at $2640. Moreover, the divergence with the RSI oscillator appeared, this is the sign of an upcoming correction. The main targets for this movement are $2640 and $2390. If the price holds above $2390, we will see a massive pump with a target of $2850.
At the same time, the rising wedge figure appeared on the BTC dominance chart. It is the bearish pattern with the main target at 40%. The meaning is calculated as the ratio of bitcoin capitalization to the capitalization of other cryptocurrencies expressed in percentage. This is a signal for the beginning of “altcoin season”, the time when all cryptocurrencies except Bitcoin are getting pumped.
Daly Bitcoin dominance chart. Source: tradingview.com
The time of extremely high volatility becomes and it’s a great chance to trade cryptos!
Don't know how to trade cryptocurrencies? Here are some simple steps.
Recently, on the 16th of January, 2023, Thailand Securities Exchange Commission issued fresh rules in its continued efforts to protect investors' assets and build confidence in the crypto space. It comes right after Bitcoin surged above $20k. However, is this enough to kickstart a full recovery for crypto coins?
Let's start off with a look at the Daily timeframe on Bitcoin. We currently see price reacting to the rally-base-rally demand zone between the 15,600 - 14,300 price area. Price also seems to have found support off the trendline support as marked in the image above. Interestingly, this means the overall bias on BTCUSD is Bullish.
Central Bank Digital Currencies (CBDCs) are virtual national money. The idea of creating such currencies came to the authorities after the success of cryptocurrencies, which also exist only in digital form.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
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