First Mover: Ether Uptrend Is Weakening, Could Test Lower Support: Technical Analysis

PLUS: Will Bitcoin Crash? Not Below $48K, Blockchain Data Suggests

March 11, 2021 Everything you need to make sense of the crypto markets and beyond Sponsored By: By the CoinDesk Markets Team Edited by Lawrence Lewitinn If you were forwarded this newsletter and would like to receive it, sign up here.  Bitcoin (BTC) +2.5%  $56,250 Ether (ETH)  -1.9%   $1,781 (Price data as of Mar. 11  @12:00 UTC) Good morning. Here's what we're writing about: Technician's Take by Damanick Dantes: Ether Uptrend Is Weakening, Could Test Lower Support: Technical Analysis Will Bitcoin Crash? Not Below $48K, Blockchain Data Suggests Check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Lawrence Lewitinn and Emily Parker, at 9 a.m. U.S. Eastern time. Today the show will feature guests: Changpeng "CZ" Zhao, founder and CEO of Binance Rep. Warren Davidson (R-OH) Richard Byworth, CEO of Diginex and Equos TECHNICIAN'S TAKE by DAMANICK DANTES Ether Uptrend Is Weakening, Could Test Lower Support: Technical Analysis Ether (ETH), the second largest cryptocurrency by market cap, is up about 140% year-to-date, but the uptrend has slowed since January. The first level of support is around $1,561, defined by its 50-day volume weighted moving average. Chart shows RSI divergence with ETH uptrend. (Source: TradingView) The relative strength index (RSI) made a series of lower highs since January, diverging from ETH's uptrend. Initial support for ETH is around $1,561, with lower support around the $1,300 breakout zone. Resistance remains around the $2,000 level, which set in February as fresh all-time-high for ETH. ETH has trailed bitcoin (BTC) since the Chicago-based commodities exchange CME launched its new ether futures contract in early February. --Damanick Dantes   Read the original story here: Ether Uptrend Is Weakening, Could Test Lower Support: Technical Analysis SPONSORED BY NEXO Your digital assets deserve a savings account in their BEST INTEREST. Leading crypto lender Nexo treats you, your crypto and your fiat to industry-best Crypto & Fiat services, featuring:    * Up to 12% interest on digital assets, paid out daily! * Yields available on BTC, ETH, LTC, BCH, XRP, XLM, EOS, TRX, LINK, BNB, PAXG, USDT, USDC, TUSD, PAX, DAI, HUSD, GBP and EUR. * No minimum or maximum limits on funds deposited, offering infinite opportunities to earn. * #ZeroFees on all transactions. * Military-grade wallet security and top-tier insurance on all custodial assets with SOC 2 Type 2 certified crypto custodian BitGo. Get started at nexo.io BEHIND THE MARKETS by MUYAO SHEN Will Bitcoin Crash? Not Below $48K, Blockchain Data Suggests Bitcoin has often traded like a risky asset over the past few weeks – selling off along with U.S. stocks as bond yields rose, typically in response to nagging worries the Federal Reserve might step in to tighten monetary policy sooner than previously signaled.   But a new analysis of data extracted from the Bitcoin blockchain suggests the risk of a steep sell-off might be capped on the downside by buyers who appear to enter the market whenever prices fall to about $48,000.   There are no signs that such a sell-off is brewing, with bitcoin's price rising Wednesday for a sixth straight day to a two-week high around $57,000. But the new analysis, by the South Korean blockchain-tracking firm CryptoQuant, might give traders comfort that prices aren't likely to revisit the end-of-2020 level of around $29,000 anytime soon.   "Speculative guess, but institutions would buy more if the price is falling," Ki Young Ju, CryptoQuant's CEO, told CoinDesk,   According to CryptoQuant, dips in bitcoin prices to about $48,000 over the past month coincided with unusually large withdrawals from wallet addresses linked to the cryptocurrency exchange Coinbase's Coinbase Pro segment: Bitcoin outflows from Coinbase Pro (Source: CryptoQuant) Those outflows "might be institutional deals through Coinbase's over-the-counter (OTC) service or Coinbase prime," Ki said. The implication is that the institutional investors might be moving their bitcoins off Coinbase Pro into so-called "cold wallets," typically because they have little intention of selling anytime soon.   So far, $48,000 appears to be an attractive purchase price. Based on a price of $56,000, investors are sitting on returns of roughly 16%. --Muyao Shen Original story found here: Will Bitcoin Crash? Not Below $48K, Blockchain Data Suggests BIGGEST MOVERS These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: Orchid (OXT): +22.2% Ethereum Classic (ETC): +3.1% Bitcoin (BTC): +2.5%   Losers:  Algorand (ALGO): -4.5% 0x (ZRX): -4.1% Tezos (XTZ): -3.8%   The CoinDesk 20 filters from the larger universe of thousands of cryptocurrencies and digital assets to define a core group of 20. These assets constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges. BOLO Be on the lookout for these events today:   13:30 UTC (8:30 a.m. ET): U.S. jobless claims for the week, released by the Department of Labor. What to look for: Market expects 725,000.  15:30 UTC (10:30 a.m. ET): Auction ends for Mike "Beeple" Winkelmann's "Everydays: The First 5,000 Images" ends. What to look for: Christie's first auction for an NFT is currently at $13.25 million. Track it here. ICYMI In case you missed it, here is yesterday's episode of First Mover:   Inflation Up 0.4% in February; Lawmakers Propose Evaluating Crypto Regulations What will Congress and the SEC do about crypto? Former SEC Commissioner Paul Atkins weighs in. Also, Multicoin Capital's Kyle Samani on DeFi's boom and Alejandro Machado with the continuing story of Venezuelans seeking refuge in cryptocurrencies. SPONSORED BY SUN EXCHANGE Earn Bitcoin and make a positive impact with Sun Exchange. On the Sun Exchange platform, you can easily buy solar cells that power sunny emerging markets and earn a 20-year passive income stream, paid in Bitcoin, from the clean electricity you generate.   Get started today! Get a free solar cell with your first purchase when you use this link. LATEST HEADLINES   JPMorgan's New Crypto Bond 'Not for the Faint of Heart,' Former Star Analyst Hintz Says Brad Hintz, a former star Sanford Bernstein analyst, Morgan Stanley treasurer and Lehman Brothers CFO, explains the risks in the fine print. Arianee, Early Pioneer of NFTs for Luxury Provenance, Raises $9.5M The project's raise marks the first time a fund linked to the French government has bought into blockchain tokens.     Planned ETF Would Invest in Grayscale's GBTC to Sidestep SEC's Crypto Reluctance Up to 15% of the fund would be invested in bitcoin, solely through the Grayscale Bitcoin Trust.     Goldman Sachs Says Client Demand for Bitcoin is 'Rising' John Waldron, COO and president, said his bank is talking to regulators about digital currencies after recently relaunching its trading desk.     US Lawmakers Make Third Attempt to Bring Legal Clarity to Cryptocurrencies Rep. Warren Davidson said the window of opportunity for the U.S. to lead the world on blockchain technology is "closing."     Bank of Russia Eyes Digital Ruble Prototype in Late 2021: Report Russia's central bank told CoinDesk that over 80% of feedback on the digital ruble was supportive of the project.     Former Mt Gox CEO Claims Rehabilitation Plan Better for Creditors Than Class Lawsuit Mark Karpeles was pushing back at a motion for class certification in a lawsuit brought by a former Mt. Gox user.   Introducing Coin Toss, debating the future of money on CoinDesk TV   From the world leader in crypto news and events, the all-new CoinDesk TV covers the rapidly evolving world of digital finance and its role in the global economy.   Hosted by CoinDesk Podcasts Managing Editor Adam B. Levine, Coin Toss sets the stage for debate between guests with opposing views on policy and regulation, privacy and data integrity, fraud and crime and more.   Watch Coin Toss Wednesdays at 10:30 a.m. ET on YouTube or CoinDesk.com. Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. 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