Dec 21, · Bitcoin proved its usefulness in times of crisis, fairing better than any other asset during the COVID pandemic. And, in the past 7 days, Bitcoin and Ethereum . Mar 21, · Ethereum is a different type of blockchain the same like Bitcoin has its own blockchain. The Ethereum blockchain has its own currency which is called Ether. The difference between Ethereum and Bitcoin is the proof of stake. And the fact that Ethereum has real people behind it.5/5(1). Dec 15, · Bitcoin, Ethereum, Trading A crypto trader and analyst known for turning a couple thousand dollars into $, in a summer trading competition says he’s ready for Ethereum to outpace Bitcoin in the new year.
Bitcoin to ethereum tradeBitcoin Trading Sideways, Wave of Ethereum-First Investors - CoinDesk
The DeFi sector exploded in , giving way to hundreds of DeFi projects and protocols. Bitcoin proved its usefulness in times of crisis, fairing better than any other asset during the COVID pandemic. While this would have been exciting development two months ago, BTC has reached similar levels several times in the past month and a half, and its price ended up continuously rejected. However, this approach was somewhat different. The price did not saw rejection right away.
Quite the opposite, in fact — it stuck close to its resistance for days, until early Wednesday, when it managed to break it. BTC price was finally rejected after hitting this level, as a strong resistance continues to block its way.
The Bitcoin surge was not triggered by any particular event, as far as it is known. Rather, events from earlier this year, such as increased interest by institutional investors, PayPal adding support for BTC in the US and announcing it elsewhere, and BTC scarcity caused by the mid-May Bitcoin halving, all created a great demand for the coin.
Finally, the fact is that the coin hit a new ATH on December 17th, while the last one took place on December 21st. Of course, it is possible that it will surge even higher in days to come, and make a new ATH exactly three years after the one in Similarly to Bitcoin, Ethereum also saw a considerable price increase over the past seven days.
However, it was a big participant in the Bitcoin-led rally that dominated this week. Obviously, ETH has shown an extreme correlation with BTC, but the correlation is not all that the coin has going for it.
Ethereum has recently concluded Phase 0 of its Ethereum 2. Not to mention that DeFi, which went huge this year, was born on Ethereum, and the second-largest crypto project is still the most dominant platform for DeFi project development. With this week being a massive success for Bitcoin and Ethereum, many are now waiting to see how will this all play out.
After all, historical data suggests that BTC typically surges quite a bit several months after going through one of its halvings.
There are some who disagree with this, noting that the two are unrelated, and that Bitcoin moves in cycles, with the fact that growth comes after halving being only a coincidence. Others expect the coin to experience a major correction, which may pull it down to some lower levels, potentially even cutting its price in half.
While this might be a possibility, the demand for the coin is higher than ever, and so is BTC price, as the new bull run that was awaited since is finally starting. As for Ethereum, the coin is still tied to Bitcoin itself, and it is unlikely that it will decouple from it anytime soon. But, there is no doubt that ETH has a lot of potential, and that it will likely start attracting even more traders as it progresses towards Ethereum 2.
Crypto Hub. All you have to do is to register a free account with any of the crypto exchanges. Then deposit fiat and buy Ethereum through the platform. Note: Before you start trading Ethereum, you should keep in mind that the crypto market is extremely risky. It is volatile and we believe a lot of the market is just driven purely by speculation. Similar to many other blockchains, Ethereum has a native currency called Ether ETH which is that is completely digital which allows it to be sent to anyone around the world with the click of a button, making payments with the ETH currency incredibly efficient and easy.
Since Ethereum can be programmed, developers use Ethereum to build new kinds of decentralized applications dApps that offer an array of features to help track and manage currency. Once "dApps" are uploaded to Ethereum, they are able to control digital assets that can create new types of financial apps.
The apps also branch to additional platforms such as cryptocurrency wallets, decentralized markets, and even games. It redefines how traditional blockchains function. Checkout more Ethereum based apps here! This will help us make profitable trading decisions. All we need for this trading strategy is two technical indicators:.
The MACD is one of the most common indicators used by traders around the world. It works in a variety of different markets and is used to spot trades before they happen. The MFI indicator is based on price action. It incorporates Volume in its calculation, which is quite similar to other oscillators.
In other words, we can use the MFI indicator to measure buying and selling pressure. The easiest way to interpret the MFI indicator is that a reading above the 50 level represents an inflow of money into the cryptocurrency.
A reading below the 50 level represents an outflow of funds from the cryptocurrency. The other critical MFI thresholds are 20 and An MFI reading of 20 is considered bullish and oversold. A reading above the 80 level is considered bearish and overbought. The MFI measures the market sentiment giving you signs. These signs are whether the cryptocurrency is oversold or overbought and to what degree.
Using the MFI indicator is probably the most useful measurement of sentiment available to traders. The first rule is that you always want to wait for the Money Flow Index to be in oversold territory. In other words, we need to have an MFI reading below the 20 level. An extreme MFI reading below 20 suggests that there is very heavy money outflow from Ethereum.
As history has repeatedly shown, this information can be used as a contrarian indicator. The MFI indicator is not a standalone indicator. So, in order to use the MFI indicator, we need to check it against other technical indicators.
These are the reason why we also use the MACD indicator. The second rule is to wait for the MACD histogram to turn positive. This is a confirmation that the bullish momentum is starting to build up. Now, we have two rules in place, but these are still not enough to trigger an entry. Indicator-based strategies are very unpredictable.
As an extra measure of caution, we also like to wait for the MFI indicator to break above the 50 level before to buy Ethereum. A reading above the 50 level represents an inflow of money into Ethereum. This is the moment when smart money is stepping into the market.
We want to trade alongside smart money to really make a profit trading the cryptocurrency market. In order to minimize our potential loss, we want to place our protective stop loss very close to the market price.
At the same time at a price where it should really invalidate our trade signal. For the Ethereum strategy, the ideal place to hide the stop loss is just below the previous swing low. You can always add a buffer to protect yourself in case of a false breakout. When it comes to our Ethereum take profit trading strategy we want to cash some profits at the first sign that the market is about to turn against us.
Otherwise, we risk given back some of our hard earned gains. The first indication that the market is about to turn is when the Money Flow Index enters into overbought territory. In other words, when the MFI breaks above 80 levels, we take profits. Use the same rules for a SELL trade — but in reverse.
In the figure below, you can see an actual SELL trade example. As you can imagine, the best way to get ETH is to buy it. There are countless cryptocurrency exchanges that will allow you to buy ETH depending where you live and how you would like to pay. You can find some of the top cryptocurrency exchanges and how to buy them here.
As you familiarize yourself with Ethereum and how it functions, who accepts it as currency, etc. There are a handful of companies that accept Ethereum as a form of currency from airlines to pizza shops. Some quick components to remember when it comes to Ethereum is that it is:.
Ethereum has fundamental advantages that hopefully will help Ethereum price suppress Bitcoin in the coming years. Trading Ethereum should only be done with money you can afford to lose. Nobody really knows what the potential is and what the future holds. Please leave a comment below if you have any questions on how to trade ethereum! Please Share this Trading Strategy Below and keep it for your own personal use!
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