- The migration towards a PoS structure in Ethereum challenges Bitcoin’s leadership.
- XRP enters a very bullish scenario in the short term.
- Bitcoin encounters strong resistance lines above $8,500.
The main headline after the weekend is the major announcement by Vitalik Buterin. The creator and visible head of the Ethereum ecosystem bet that the Ethereum 2.0 network will be safer than the Bitcoin network.
The Ethereum network will soon migrate to a PoS (Proof of Stake) structure from the current PoW (Proof of Work) protocol.
In PoW architectures, such as Bitcoin or Ethereum 1.0, miners/validators compete for more computing power to be the first to validate a transaction and get the reward.
In PoS architectures, the miners/validators "stakes" their Ethereums and, with it, acquire calculation rights over the same percentage that their tokens represent over the total in circulation.
The PoS architecture eliminates a competition factor that makes operation much more expensive. According to Buterin, the new system is faster and enjoys a level of security equal to or higher than that of the Bitcoin network.
ETH/BTC Daily Chart
ETH/BTC is trading at 0.0220 and is heading towards a second attempt to regain the 0.0221 resistance level. Since July 15, when this support level was lost, it has been signaled as a critical level to recover.
Above the current price, the first resistance level is at 0.0221, then the second at 0.0230 and the third one at 0.025.
Below the current price, the first support level is at 0.021, then the second at 0.020 and the third one at 0.0187.
The MACD on the daily chart lost the bullish cross at the end of last week, and today has a fully flat and cross profile on the downside. There is a higher likelihood of falls than of success in the attempt to break the bullish trend.
The DMI on the daily chart shows how the bulls are trying to regain the level of the ADX line lost on Friday. The bears cease their bullish movement for the time being. The development pattern is open to both sides of the market.
BTC/USD Daily Chart
BTC/USD is currently trading at the $8,324 price level and is unable to tackle a severe attack on the $8,450 resistance level. The SMA200 appears to be an insurmountable obstacle at the moment.
Above the current price, the first resistance level is at $8,450, then the second at $8,800 and the third one at $9,150.
Below the current price, the first support level is at $8,200, then the second at $8,000 and the third one at $7,850.
The MACD on the daily chart shows a bullish profile thanks to last week's mid-week price hikes. Although not reflected in the spot price, the structure is potentially bullish in the short term.
The DMI on the daily chart shows bears remaining at similar levels to last week. Bulls bounced back from shallow levels, but have been unable to consolidate the recovery.
ETH/USD Daily Chart
ETH/USD trades at $184 trapped between the EMA50 at $188 above and the support level at $180. The announcement of a validation protocol change does not impact the price but may improve perception in the medium and long term.
Above the current price, the first resistance level is at $190, then the second at $194 and the third one at $200.
Below the current price, the first support level is at $180, then the second at $170 and the third one at $162.
The MACD on the daily chart maintains a bullish profile, although with a tiny opening between the lines. The indicator is just below the neutral line of the indicator, which will limit the bullish development in the short term.
The DMI on the daily chart shows how the bears remain above the ADX line, and therefore, the price bottom remains bearish. The bulls continue to descend softly and show no interest in discussing leadership to the bears.
XRP/USD Daily Chart
XRP/USD is traded at the $0.291 price level and is above the top three moving averages. This conquest completely changes the scenario and opens the door to strong bullish movements.
Above the current price, the first resistance level at $0.295, then the second at $0.296 and the third one at $0.30.
Below the current price, the first support level is at $0.285, then the second at $0.282 and the third one at $0.27.
The MACD on the daily chart shows an entirely bullish profile, beating the neutral zone and increasing both the openness and inclination. The short term scenario is strongly bullish.
The DMI on the daily chart shows the bulls speeding up a lot on their bullish path. The bears continue a gentle decline, away from the strength shown by the buyers — possible Increase in volatility.
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