- Ethereum (ETH) up 16.8 percent
- Cryptopia liquidates after Jan 2019 loss
Behind today’s 16.8 percent surge of Ethereum (ETH) prices are supportive fundamentals. Sources indicate that the CFTC is warming up to the idea of ETH derivatives and heavyweights are gravitating towards Ethereum. That is supporting prices, countering sell pressure emanating from Cryptopia liquidation.
Ethereum Price Analysis
It’s over for Cryptopia, the New Zealand cryptocurrency exchange that was hacked, losing an estimated $16 million. Most of those lost coins were Ethereum (ETH) and related ERC tokens. With no haircuts, investors, as well as the exchange’s stakeholders, had to count losses severely affecting the liquidity position of the once vibrant exchange.
Unfortunately for traders and investors, the repercussions took a heavy toll, and the crypto exchange is now in liquidation. Grant Thornton New Zealand, the official liquidator, made the announcement which was subsequently confirmed by Cryptopia, a few hours after the exchange went for unscheduled maintenance.
David Ruscoe representing the liquidator, said:
“We realize Cryptopia’s customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders, including management and shareholders, to find the solution that is in the best interests of customers and stakeholders.”
However, price action points at a different picture. Reflecting resilience–and an on-demand asset, the second most valuable coin is 40.3 percent in the last week. It’s up a massive 16.8 percent in the past 24 hours, matching the performance of Ripple (XRP) which is also on a solid uptrend.
In line with our last ETH/USD trade plan and development of the previous 24 hours, traders should fine-tune their positions in lower time frames as momentum build up. Already, hinting of underlying demand, bars are banding along the upper BB as it diverges from the 20-day MA.
Concurrently, ETH bulls are cementing their position above $200, and in a bull breakout pattern, it is likely that prices will expand towards $250, our first target and later $300. However, our ultimate aim stands at $450 or Q2 2018 lows.
Affirming our stance is increasing participation levels. From late Apr-2019, transaction volumes have more than doubled from around 100k to 242k of May-14. That is an express indication of demand, the perfect building blocks that will feed the next wave of higher highs first towards $250, $300 and later $450.
Chart courtesy of Trading View