Ether

US House committee chair repeatedly presses SEC chair: ‘Is Ether a commodity or a security?’

Securities and Exchange Commission chair Gary Gensler has said the SEC considers Bitcoin a commodity, but refused to pin down Ether at an oversight hearing.

Patrick McHenry, chair of the United States House Financial Services Committee, jumped right into criticism of the Securities and Exchange Commission and its leadership over digital assets at an oversight hearing. 

In an April 18 hearing on oversight of the SEC, Representative McHenry used his opening statement to bring up the commission’s “punishing” of digital asset firms through regulation by enforcement without a clear path to compliance. The congressman reiterated calls for U.S. lawmakers to provide “clear rules of the road” for crypto through legislation. In addition, he pressed SEC chair Gary Gensler to give a definitive answer on whether Ether (ETH) qualified as a security under the SEC’s purview, or a commodity under the Commodity Future Trading Commission’s.

McHenry repeatedly talked over Gensler’s responses that did not include specifics, citing the SEC chair’s willingness to label Bitcoin (BTC) as a commodity and hinting at private discussions on ETH prior to the hearing.

“Clearly an asset cannot be both a commodity and a security,” said McHenry. “I’m asking you, sitting in your chair now, to make an assessment under the laws as exist, is Ether a commodity or a security?” 

He added:

“You have pre-judged on this: you’ve taken 50 enforcement actions. We’re finding out as we go, as you file suit, as people get Wells notices, on what is a security in your view, in your agency’s view.”

Related: Video of SEC chair praising Algorand resurfaces after recently deeming it a security

Representative Maxine Waters, ranking member of the House committee, did not press Gensler on ETH but focused her questioning on the SEC’s enforcement capabilities. According to the SEC chair, the commission had the means, the authority, and the will to bring crypto firms into regulatory compliance.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

This is a developing story, and further information will be added as it becomes available.

Gary Gensler refuses to answer if ETH is a security: SEC hearing

SEC Chair Gary Gensler has said the SEC considers Bitcoin a commodity but refused to pin down Ether at an oversight hearing.

Patrick McHenry, chair of the United States House Financial Services Committee, jumped right into criticism of the Securities and Exchange Commission and its leadership over digital assets at an oversight hearing. 

In an April 18 hearing on oversight of the SEC, Representative McHenry used his opening statement to bring up the commission’s “punishing” of digital asset firms through regulation by enforcement without a clear path to compliance. The member of Congress reiterated calls for U.S. lawmakers to provide “clear rules of the road” for crypto through legislation. In addition, he pressed SEC Chair Gary Gensler to give a definitive answer on whether Ether (ETH) qualified as a security under the SEC’s purview or a commodity under the Commodity Future Trading Commission’s.

McHenry repeatedly talked over Gensler’s responses that did not include specifics, citing the SEC chair’s willingness to label Bitcoin (BTC) as a commodity and hinting at private discussions on ETH prior to the hearing.

“Clearly an asset cannot be both a commodity and a security,” said McHenry. “I’m asking you, sitting in your chair now, to make an assessment under the laws as exist, is Ether a commodity or a security?” 

He added:

“You have pre-judged on this: You’ve taken 50 enforcement actions. We’re finding out as we go, as you file suit, as people get Wells notices, on what is a security in your view, in your agency’s view.”

Representative Maxine Waters, ranking member of the House committee, did not press Gensler on ETH but focused her questioning on the SEC’s enforcement capabilities. According to the SEC chair, the commission had the means, the authority and the will to bring crypto firms into regulatory compliance.

Many in and out of the crypto space have criticized the SEC under Gensler for taking enforcement actions against firms involved with digital assets and blockchain technology. On April 17, the SEC charged crypto asset trading platform Bittrex and its co-founder William Shihara for offering unregistered securities, and a Wells notice issued to Coinbase in March suggests the major exchange could be next.

Gensler claimed the crypto market was “rife with noncompliance”, in many cases firms willfully doing so. His written testimony said compliance with the SEC extended to decentralized finance platforms — an indication of the commission proposing changing its rules to include DeFi in exchanges under its purview.

Related: Video of SEC chair praising Algorand resurfaces after recently deeming it a security

The April 18 hearing was the first time Gensler had directly addressed the House committee since October 2021 — prior to the collapse of FTX, Celsius, BlockFi and crypto-friendly banks including Signature, Silicon Valley Bank and Silvergate. The Financial Services Committee will also meet to discuss stablecoin regulation in an April 19 hearing.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

Can Ethereum crack $2K? ETH price inches closer despite new unlocked supply

Ethereum staking withdrawals are gathering momentum but have not been able to cause a major sell-off as many anticipated post-Shapella upgrades.

The price of Ethereum’s Ether (ETH) token edged toward $2,000 a day after the launch of the network’s long-anticipated Shapella upgrade.

Ethereum ducks sell-the-news fears

On April 13, Ether’s price gained roughly 4% to reach an intraday high of $1,996 on Coinbase, ignoring the potential sell-off pressure the Shapella upgrade could potentially bring to the market.

ETH/USD daily price chart. Source: TradingView

To recap: The Shanghai hard fork, also known as “Shapella,” enables users to withdraw their ETH from Ethereum’s proof-of-stake smart contract.

As of 9:00 am UTC on April 13, over 98,000 ETH worth around $194.8 million has left Ethereum’s voting balance reserves since the Shanghai launch a day ago, according to Nansen. In other words, nearly $200 million in potential selling pressure has entered the market.

ETH deposits vs. withdrawals. Source: Nansen

But Ether’s price rise since Shanghai suggests that the market has had no problem absorbing any selling pressure arising from this event so far. It’s also possible that most users have decided to hold onto their ETH staking rewards rather than sell them in anticipation of further gains.

About 15% of Ethereum’s total supply in circulation, nearly 120.4 million ETH, is currently staked.

Interestingly, more than 70% of the ETH staked is still underwater compared to current price levels, according to data gathered by Dune Analytics. This reduces the possibility of a sell-off in the near term from Shanghai’s staking withdrawals.

Ethereum price risks 10% correction

The ongoing run-up in the Ethereum market has left ETH/USD slightly overbought, raising the likelihood of a short-term price correction this month.

Related: When levees break, liquidity flows — Analyzing Ethereum Shapella and liquidity staking derivatives

Notably, ETH’s daily relative strength index (RSI) is merely two points below its overbought threshold of 70. In addition, ETH/USD tested a critical resistance level near $1,990, which preceded price pullbacks in May and August 2022.

ETH/USD daily price chart. Source: TradingView

A repeat of this scenario likely means a correction toward its 50-day exponential moving average (50-day EMA; the red wave) near $1,750 in April, down about 10% from the current price levels. This ETH price level is also close to the historical support/resistance line.

Conversely, a decisive breakout above $2,000 — a psychological resistance level — could have Ether price start its potential climb toward $3,000.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ethereum Shanghai hard fork: ETH price set for more gains versus Bitcoin in April

Ethereum price has gained momentum in April, even against Bitcoin, as the much-anticipated Shanghai hard fork is just days away.

Ether (ETH) dropped by over 7.5% in its Bitcoin (BTC) pair in 2023. But ETH/BTC may wipe its year-to-date losses entirely in April, as Ethereum’s long-awaited Shanghai hard fork is just days away.

The upgrade is set for April 12, enabling Ethereum stakers to withdraw around 1.1 billion ETH in rewards — worth over $2 billion as of April 8. 

ETH price undergoes key technical bounce

Many experts see the hard fork as bullish for Ether in the long term. For instance, the Shanghai buzz has helped Ether outperform Bitcoin in April.

As a result, the ETH/BTC pair has risen by about 4.75% month-to-date to reach 0.066 BTC as of April 8, a nearly 8% rebound since March 20. 

The bounce was largely expected, particularly as ETH/BTC dropped to its historical ascending trendline support. Now, the upside move raises the prospects of an extended bullish retracement toward its descending trendline resistance, marked as a “sell zone” in the chart below.

ETH/BTC three-day price chart. Source: TradingView

The fractal-based outlook puts Ether on target for 0.075 BTC by June, up 10% versus current price levels. Meanwhile, the pair’s upside target for April appears to be its 50-3D exponential moving average (50-3D EMA; the red wave) near 0.069 BTC.

Conversely, a decisive close below the 200-3D EMA (the blue wave) near 0.066 BTC, coinciding support/resistance level near 0.067 BTC, risks delaying or — in the worst case scenario — invalidating the bullish retracement setup.

This bearish argument echoes independent market analyst CrediBULL Crypto who expects strong selling pressure near the 0.067 BTC resistance level that would lead to a 50% drop in 2023. 

ETH/BTC weekly price chart. Source: TradingView/CrediBULL Crypto

Ethereum vs. U.S. dollar outlook

The ETH/USD pair has rallied by more than 50% in 2023, primarily due to similar uptrends elsewhere in the crypto market.

A weakening dollar, lower U.S. Treasury yields and expectations of a Federal Reserve pivot on interest rate hikes have helped cryptocurrencies rise across the board in Q1. These catalysts will likely remain in the spotlight until May’s Federal Open Market Committee meeting.

As a result, Ether could sustain its yearly gains in April, consolidating inside the $1,800–2,000 range until the Fed decision.

Related: 3 key Ethereum price metrics cast doubt on the strength of ETH’s recent rally

Moreover, a decisive breakout at current levels could result in extended gains with a second-quarter ETH price target of over $3,000.

ETH/USD three-day price chart. Source: TradingView

On the other hand, the bears will attempt to pull the price down for a close below $1,800, with the triangle’s lower trendline near $1,600 as its downside target.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin whales push ‘choreographed’ BTC price as Ether nears $2K

Bitcoin and Ethereum are both attempting to tackle major price boundaries, but suspicions over the cause of the rally remain.

Bitcoin (BTC) headed back toward $29,000 into April 5 as data showed whale orders guiding price action.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Analysis: BTC price push still “bear market rally”

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit $28,780 on Bitstamp.

The pair continued a rebound from one-week lows under $27,300 at the start of the week courtesy of rumors around the Binance crypto exchange and its CEO, Changpeng “CZ” Zhao.

After reclaiming $28,000, Bitcoin saw fresh momentum as Binance order book data showed large-volume “whale” traders buying.

This was not all as it seemed for bulls, monitoring resource Material Indicators nonetheless warned, as those same traders could be artificially pushing the market higher in order to sell closer to $30,000.

“Likely a choreographed attempt to push the distribution range up in the short term,” part of the accompanying commentary stated.

“Personally still treating this as #BearMarketRally until proven otherwise.”

A subsequent print of the order book with liquidity levels showed the spot price eating into a dense cloud of asks, potentially stranding latecomers choosing to go long BTC believing that the upside may continue.

BTC/USD order book data (Binance). Source: Material Indicators/ Twitter

Others were more hopeful that $30,000 could see a genuine challenge after being absent from the chart for nearly a year.

Among them was Michaël van de Poppe, founder and CEO of trading firm Eight.

“Bitcoin looks eager to break the crucial barrier at $30K, while altcoins are also waking up,” he told Twitter followers on the day.

“If Bitcoin makes that breakout, we’ll probably see significant breakout across the board on altcoins as confidence comes back in the markets.”

Related: Crypto winter can take a toll on hodlers’ mental health

Analytics account IncomeSharks was similarly optimistic when it came to altcoins, in particular, opting to swap BTC exposure for alternatives at current prices.

“Been waiting all year for this,” it announced.

“If we can hold this and keep pushing up get ready to not care what Bitcoin does and make multiple X’s on alts. Part of me selling some $BTC at $28,000 is me wanting more exposure to alts.”

Total crypto market cap annotated chart. Source: IncomeSharks/ Twitter

The day prior, popular trader Crypto Tony had agreed that liquidity was “moving” away from Bitcoin on short timeframes.

ETH must hold crucial range high

With that, the largest altcoin Ether (ETH) looked primed for an attack on $2,000 at the time of writing, having gained nearly 5% in the past 24 hours. 

Related: BTC price double top forming? 5 things to know in Bitcoin this week

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

Analyzing moves on ETH/USD, now at eight-month highs, trading suite DecenTrader noted that funding rates had already been hinting at the upside to come.

“The goal now is for Ethereum to now stay above the range high at $1,840,” Crypto Tony added in his own ETH/USD analysis.

ETH/USD annotated chart. Source: Crypto Tony/Twitter

“If we begin closing back below, the we have a deviation and we know what that means.”

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin price turns $28K to support, opening the door for ETH, MATIC, HBAR and EOS to breakout

BTC, ETH, MATIC, HBAR and EOS are likely to pick up momentum if they cross above their respective overhead resistance levels.

The market witnessed a major banking crisis in March as Silicon Valley Bank and Signature Bank failed and Silvergate Bank entered liquidation as a result of dire financial distress. In Europe, the government brokered a forced takeover of Credit Suisse by UBS. Still, the United States equities markets and the European stock markets closed the month on a positive note.

The cryptocurrency market was also shaken by volatility, but Bitcoin (BTC) gained about 23% in March. Going forward, the picture looks encouraging for Bitcoin bulls in April and data from Coinglass suggests that the month has largely favored the buyers.

Crypto market data daily view. Source: Coin360

Although altcoins reacted positively to Bitcoin’s rise, the rally has not been equal across the board. This suggests that market participants have been selective in their purchases. As a result, traders might focus on the movers rather than the laggards.

Let’s study the charts of five cryptocurrencies that look positive in the near term. If they break above their resistance levels, they may offer short-term trading opportunities.

Bitcoin price analysis

Bitcoin is facing stiff resistance at the $29,000 level but the bulls have not allowed the price to lose ground. This suggests that the bulls are being patient, anticipating a move higher.

BTC/USDT daily chart. Source: TradingView

The 20-day exponential moving average ($27,012) is trending up and the relative strength index (RSI) is above 61, indicating that the buyers are in control. The bullish momentum is likely to pick up after buyers overcome the obstacle at $29,200. That could start a rally to $30,000 and subsequently to $32,500.

Conversely, if the price turns down sharply from the current level, it will suggest that the short-term traders are selling. The BTC/USDT pair may slump to the 20-day EMA, which is an important level to keep an eye on.

If this support gives way, the pair could slide to the breakout level of $25,250. This is a make-or-break level for the pair because if it collapses, the selling could intensify and the decline could extend to the 200-day simple moving average ($20,424).

BTC/USDT 4-hour chart. Source: TradingView

Buyers pushed the price above the overhead resistance at $28,868 but could not sustain the higher levels. This suggests that bears are trying to keep the price below $28,868. If bears sustain the price below the 20-EMA, the pair may start its fall toward $27,500 and then to $26,500.

On the upside, a break and close above $28,868 will indicate that the bulls have overpowered the bears. That could signal the start of the next leg of the up-move. The target objective from the break above the $26,500 to $28,868 range is $31,236.

Ether price analysis

Ether (ETH) turned down from the overhead resistance of $1,857 on April 1 but the bulls are not giving up much ground. This suggests that the buyers are not rushing to the exit.

ETH/USDT daily chart. Source: TradingView

The upsloping 20-day EMA ($1,748) and the RSI in the positive area suggest that the path of least resistance is to the upside. If bulls drive the price above $1,857, the ETH/USDT pair may make a dash to the psychologically important level of $2,000.

The bears are likely to mount a strong defense at this level but if bulls overcome this barrier, the next stop could be $2,200. This positive view will invalidate in the near term if the price plunges below the 20-day EMA and the horizontal support at $1,680.

ETH/USDT 4-hour chart. Source: TradingView

The four-hour chart shows that the pair turned down from the overhead resistance of $1,857, and the bears pulled the price below the 20-EMA. This suggests that the short-term bulls may be closing their positions. The pair could next fall to $1,743 and thereafter to $1,680.

Contrarily, if the price turns up and rises back above the 20-EMA, it will suggest that the break may have been a bear trap. A strong bounce off the current level could enhance the prospects of a rally above the overhead resistance.

Polygon price analysis

Polygon (MATIC) has been trading near the 20-day EMA ($1.11) for the past few days. Generally, a tight consolidation near an overhead resistance resolves to the upside.

MATIC/USDT daily chart. Source: TradingView

If buyers thrust the price above the 20-day EMA, the MATIC/USDT pair will attempt a rally to $1.25 and thereafter to $1.30. The bears are expected to guard this zone vigorously because if they fail, the pair could soar to $1.57.

Alternatively, if the price turns down from the current level and breaks below $1.05, it will suggest that the bears are back in the driver’s seat. The pair may then fall to the 200-day simple moving average (SMA) of $0.97, which is an important level to watch out for. If this support cracks, the pair may plummet toward $0.69.

MATIC/USDT 4-hour chart. Source: TradingView

The bears are trying to sustain the price below the 20-EMA. If they succeed, the pair could skid to $1.05 and then to $1.02. This is an important zone for the bulls to defend because if it gives way, the pair may continue its downward move to $0.94.

On the other hand, if the price turns up from the current level, it will suggest that every minor dip is being purchased. That will increase the likelihood of a break above the minor resistance at $1.15. The pair may then ascend to $1.25.

Related: Bitcoin copying ‘familiar’ price trend in 2023, two more metrics show

Hedera price analysis

Buyers foiled several attempts by the bears to sink and sustain Hedera (HBAR) below the 200-day SMA ($0.06) between March 9 to 28.

HBAR/USDT daily chart. Source: TradingView

The 20-day EMA ($0.06) has started to turn up and the RSI is in the positive territory, indicating that buyers have the upper hand. The HBAR/USDT pair is likely to continue its northward march to the $0.10 to $0.11 resistance zone. Sellers are likely to defend this zone with all their might but if buyers bulldoze their way through, the pair may start a new uptrend.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will suggest that bears are selling on relief rallies. The pair may then retest the crucial support at the 200-day SMA. A break below this level will open the doors for a possible drop to $0.04.

HBAR/USDT 4-hour chart. Source: TradingView

The bulls started a strong recovery from the support near $0.06 but the relief rally is facing strong resistance in the zone between the 50% Fibonacci retracement level of $0.07 and the 61.8% retracement level of $0.08.

On the downside, the bulls are trying to defend the support at the 20-EMA. If the price rebounds off it, the pair may rally to $0.09 and then to $0.10. Conversely, if the price plummets below the 20-EMA, it will suggest that bears are still in the game. The pair could then descend to the support near $0.06.

EOS price analysis

EOS (EOS) is trying to complete a bullish cup and handle formation. Buyers pushed the price above the 20-day EMA ($1.15) on March 29, starting a comeback.

EOS/USDT daily chart. Source: TradingView

The 20-day EMA has started to turn up gradually and the RSI is in the positive territory, indicating a minor advantage to the bulls. The ETH/USDT pair is likely to rise to the overhead resistance zone between $1.26 and $1.34.

Sellers are likely to defend this zone aggressively but if bulls overpower the bears, the pair may start a new uptrend. The pattern target of the reversal setup is $1.74.

On the contrary, if the price turns down from the overhead zone, it will indicate that bears are selling on rallies. The pair could then slide to the 20-day EMA and later to the 200-day SMA ($1.05). A break below this level will suggest that the bears are back in command.

EOS/USDT 4-hour chart. Source: TradingView

The four-hour chart shows that the bears are protecting the $1.22 level with vigor but a minor positive is that the bulls have not allowed the price to dip below the 20-EMA. This shows strong demand at lower levels.

The upsloping 20-EMA and the RSI in the positive territory indicate that bulls have a slight edge. If buyers propel the price above $1.22, the pair could rise to $1.26 and thereafter to $1.34.

Contrarily, if the price slumps below the 20-EMA, it will suggest that short-term traders may be booking profits. The pair could then drop to $1.14 and later to $1.06.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

3 reasons why Ethereum price can reach $3K in Q2

Ethereum on-chain and technical indicators show a long-term bullish argument for ETH price in the near to medium terms.

Ethereum’s native token, Ether (ETH), eyes a run-up toward $3,000 in Q2 2023 after wrapping the previous quarter with 55% gains.

ETH price nears potential breakout

The price of Ether has more than doubled after bottoming out in June at around $880, weathering a slew of negative events, including the collapse of FTX, interest rate increases, and stricter U.S. regulations.

In doing so, ETH/USD has painted an ascending triangle, confirmed by its rising trendline support and horizontal level resistance. The pattern suggests aggressive buying as lows get steadily higher while highs stay around the same level, indicative of a higher selling pressure at the given level. 

As of April 2, ETH’s price is testing its horizontal level resistance range ($1,700-1,820) for a potential breakout move.

ETH/USD three-day price chart featuring an “ascending triangle” bottom setup.

A breakout will be confirmed if the price closes above the resistance range while accompanying higher volumes. Furthermore, the ascending triangle breakout target is measured with its length equal to the triangle height.

In other words, the bullish ETH price target is in the $3,350-3,900 range, depending on where traders see the triangle’s rising trendline support, as shown by the T1 and T2 in the chart above. This would suggest 80% gains by June.

Conversely, a pullback from the $1,700-1,820 range risks delaying the upside setup and resulting in a broader price correction.

Ethereum whale accumulation remains strong

From an on-chain perspective, Ether’s short-term and long-term trends look skewed toward the bulls.

Most Ethereum whale cohorts have increased their ETH accumulation in recent weeks, according to the latest data from Santiment. For instance, the supply of Ether held by addresses with a 1,000-10,000 ETH balance (blue in the chart below) has grown by 0.5% in March.

Ether supply distribution among investors holding at least 1,000 ETH. Source: Santiment 

Similarly, the 1 million-10 million ETH (brown) and the 10 million – 100 million ETH balance cohorts have witnessed 0.4% and 0.5% rises, respectively. 

The growth appeared amid what appears to be the absorption of selling pressure introduced by the 100,000-1 million ETH (pink) and 10,000-100,000 ETH (orange) address cohorts.

At the same time, the growth could attributed to the network’s proof-of-stake contracts — directly or by using third-party stakers such as Lido DAO (LDO).

Ethereum 2.0 total value staked [in ETH]. Source: Glassnode

The net Ether deposited at the official Ethereum 2.0 address crossed above 18 million ETH after rising about 3.5% in March.

Related: Analysts debate the ETH price outcomes of Ethereum’s upcoming Shapella upgrade

The deposits have grown ahead of Ethereum’s Shanghai and Capella upgrades on April 12, which will enable stakers to withdraw ETH from the PoS smart contract. Currently, this is not possible.

MVRV Z-Score: Ethreum price bottom reversal

More bullish arguments stem from Ethereum’s MVRV Z-Score entering a stage that has previously preceded long-term ETH price rallies.

Ethereum MVRV-Z Score. Source: Glassnode

The MVRV Z-Score assesses when Ethereum is overvalued and undervalued relative to its “fair value.” As a rule, the MVRV Z-score indicates a market top (red zone) when market value rises above realized value, while the opposite indicates market bottoms (green zone).

Ether’s previous price recoveries coincide with its MVRV Z-Score bouncing from the green zone, suggesting the same could happen over the next three months.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

XRP price tags 10-month high — Can a 35% pullback be avoided?

A U.S. regulator called Bitcoin, Ether and Litecoin commodities in its court filing against Binance; it did not mention XRP anywhere.

XRP (XRP) outperformed its top-ranking crypto rivals over the past 24 hours while reaching its highest price in 10 months. 

XRP price tags 10-month high

On March 29, XRP’s price surged by nearly 15% to $0.58, its highest level in 10 months, outperforming Bitcoin (BTC) and Ether (ETH) in the past 24 hours, which rose around 4.5% and 2.75%, respectively.

XRP/USD daily price chart. Source: TradingView

The Commodity Futures Trading Commission referred to Bitcoin, Ether and Litecoin (LTC) as “commodities” in its court filing against Binance. While the United States regulatory body didn’t name XRP, many assumed the token would be categorized as a commodity.

Related: Here’s why CFTC suing Binance is a bigger deal than an SEC enforcement

The SEC v. Ripple lawsuit will have likely concluded by the end of March, with legal experts believing Ripple can win. XRP’s price has rallied 45% month-to-date on similar hopes, including the March 29 price rally, supplemented further by investors’ optimistic interpretation of the CFTC court filing.

35% XRP price correction ahead?

XRP’s price rally brought it closer to the breakout target of $0.60. However, the possibility of a big correction after the SEC v. Ripple ruling as a “sell the news” event remains.

Related: Why is XRP price up today?

Technical indicators also show the XRP/USD pair facing the upper trendline of its prevailing rising channel. Thus, a correction toward the lower trendline is now in play, with the downside price target around $0.38 in April, down 35% from current price levels. 

XRP/USD daily price chart. Source: TradingView

On a broader timeframe, the rising channel appears like a bear flag, a bearish continuation technical indicator.

XRP/USD weekly price chart. Source: TradingView

The completion of the flag pattern could see XRP’s price falling to $0.189 by June, down over 65% from current price levels

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Breaking: Shanghai upgrade executed on testnet but not without issues

Ethereum validators are now one step away from being able to unstake their Ether from the Beacon Chain.

The Shapella hard fork has been executed on the Goerli testnet — the last test run before Ethereum validators will be able to withdraw their Ether (ETH) from the Beacon Chain.

There were, however, issues with the hard fork. Ethereum core developer Tim Beiko noted that while deposits were being processed, the process didn’t run as smoothly as it could have because several testnet validators didn’t upgrade their client software before the Goerli fork.

He blamed it on testnet validators having “less incentive” to make the upgrade given that the Goerli ETH “is worthless” but expects validators to make proper adjustments ahead of the fork on the Ethereum mainnet.

Ethereum researcher “terence.eth” explained that it took 15 epochs for Shapella to be forked onto the Goerli testnet because network participation was below the two-thirds threshold:

Through Ethereum Investment Proposal EIP-4895 staked ETH from the Beacon Chain will be “pushed” to the execution layer.

While the Shapella upgrade comprises five different EIPs, EIP-4895 has been by far the most anticipated as it moves Ethereum one step closer to a fully functional proof-of-stake system.

Shapella is expected to take effect on the Ethereum mainnet in early April following a few delays in preparing the Sepolia and Goerli testnets for the fork.

The hard fork will allow for partial and full withdrawals, and will theoretically unlock 17.6 million ETH when Shapella is forked, which equates to over $30 billion at current prices.

However several mechanisms are in place to prevent a flood of the ETH supply from hitting the market, according to the Ethereum Foundation.

The number of withdrawals allowed within a 24-hour period will only represent about 0.40% of the total staked ETH because only an approximate 2,200 withdrawals can be processed per day.

Related: Ethereum Shanghai upgrade could benefit liquid staking providers and cement ETH’s layer 1 dominance.

This is because, in most cases, a maximum of 10 validators can be assigned to an epoch and it takes approximately five or six minutes for an epoch to be processed.

If each of the 2,200 validators withdraws the full 32 ETH staked per day it would only account for about 70,000 ETH — a fraction of the 17.6 million staked.

The execution on Goerli was shared in a March 15 live stream by EthStaker on YouTube.


Lido Finance activates staking rate limit after more than 150,000 ETH staked

Lido Finance had to activate its safety feature — staking rate limit — after over 150,000 ETH was staked in a single day.

Liquid staking protocol Lido Finance activated a protocol safety feature called “staking rate limit” after more than 150,000 Ether (ETH) was staked with the protocol in a single day.

Lido is a liquid staking solution for digital assets, allowing users to stake Ether without them needing to have their tokens locked. When a user deposits Ether, Lido issues them a liquid variant of ETH, known as staked Ether (stETH), giving users staking rewards for each day the tokens are held in their wallets.

According to the liquid staking protocol’s Feb. 25 tweet, the “dynamic mechanism” was activated after the daily staking limit of 150,000 Ether was reached.

In a related guide, Lido explained that the “safety valve” is aimed at limiting the amount of staked Ether that can be minted during high inflows, intended to address any potentially negative effects, such as rewards dilution.

“This means it is only possible to submit this much Ether to the Lido staking contracts within a 24-hour timeframe,” it explained.

The mechanism works by limiting the amount that can be minted based on deposits within the last 24 hours, replenishing capacity at 6,200 ETH per hour.

“It works by decreasing how much total stETH can be minted at any one time based on recent deposits, and then replenishing this capacity on a block-by-block basis,” Lido said.

Lido noted the staking rate limit mechanism would affect “all parties who may try to mint stETH, regardless of approach.“

Eagle eyed on-chain analyst Lookonchain shared a screenshot reportedly showing that the 150,100 ETH may have come from a single user, with three deposits 50,000 each and one of 100.

Caption: An on-chain analyst has discovered that 150,100 ETH may have come from a single user. Source: DeBank

According to Lido Finance’s website, as of Feb. 27, more than $8.9 billion in ETH has been staked with the protocol, up significantly from the $5.8 billion reported on Jan. 2. 

Related: SEC’s crypto staking crackdown has uncertain consequences for DeFi: Lido Finance

The latest development from Lido comes as Ether staking volumes have reportedly continued to rise as the Shanghai upgrade nears. The Ethereum Shanghai upgrade is due in mid-March, leading to speculation about what could happen to the price of Ether.

One of the five planned upgrades, EIP-4895, is expected to unlock staked ETH and allow withdrawals, potentially leading to increased liquidity in the crypto market.

$25 billion of ETH has been staked since the Beacon Chain was launched and introduced staking to ETH in December 2020.