Bitazza Crypto Weekly: Ethereum Hard Fork Is Live -

Crypto Weekly: 9 – 15 August 2021

Last week Ethereum successfully implemented the London hard fork, moving the network one step closer to entering Ethereum 2.0. The London hard fork included several key mechanisms, such as EIP-1559, which will be vital for the eventual transition to ETH 2.0.

The London upgrade will help turn ETH into a deflationary currency by reducing the circulating supply of ETH through their burning mechanism, which will serve to increase the scarcity of ETH. If demand for ETH can grow while supply is gradually reduced, Ethereum will see significant increases in price over time, much like Bitcoin.

In addition, this update also aims to address the frequent drastic Gas fee fluctuations and high costs. Ethereum is hoping to incentivize developers and users to return to the Ethereum blockchain by bringing lower and steadier transaction fees to the market.

The improvements to Ethereum’s fundamentals have caused ETH prices to surge over the past week, pushing it even closer to Bitcoin as the leader of the digital asset market.

Meanwhile, The Block has reported that NFT weekly trading volumes have surpassed the $300 million level for the first time, with trade volumes reportedly reaching $339 million over the past week. This marked a more than 70% increase from mid-July, when the NFT weekly trade volume peaked at $209.27 million.

Specifically, NFT trade volume on the OpenSea marketplace hit $95 million over a two-day span, representing a four times higher volume than total volume in the past year.

All things considered, the future of mass adoption for crypto looks bright with J.P Morgan launching a bitcoin-based fund targeting their more prominent clients, as well as Uruguay preparing legislature that will formally recognize digital currencies as legal tender.

Weekly Technical Analysis: 9 – 15 August 2021

Bitcoin (BTC)

Bitcoin’s strong recovery has continued, with BTC in the midst of a clear uptrend with a critical support level at $41,000. If this support can remain intact, the recovery will continue, and BTC will look to challenge resistance at the $46,000 level. Those looking to enter a BTC position this week should look to buy whenever there are dips in price; however, if BTC prices reach the resistance level, traders should consider liquidating some of the BTC in their portfolio and taking profit while they can.

Ethereum (ETH)

ETH’s strong recovery has continued unabated, with the London hard fork strengthening its recovery even further. ETH has a support level at $2,835 and will look to challenge resistance at the $3,200 level. If ETH can successfully break through its initial resistance, the next level it will look to test is at the $3,500 mark.

Terra Chain (LUNA)

LUNA’s rally has outpaced other altcoins, and LUNA has a crucial support level at 400 Baht this week. If this support can remain intact, look to see if LUNA can successfully challenge resistance at the 560 Baht level. If traders are looking to enter a LUNA position this week, look for a point where prices dip.

Compound (COMP)

COMP is benefiting from the gradual rally of the DeFi sector as investors begin to shift their focus and capital from higher market cap altcoins that have had substantial recoveries over the past couple of weeks into smaller market cap tokens. COMP has been the strongest performing DeFi token recently, with a critical support level this week at 14,000 Baht. COMP is targeting its resistance level at 18,000 Baht.

Trading and Investment Considerations For The Week

Bitcoin and Ethereum’s strong performance over the past weeks has slowly led the rest of the digital asset market into a recovery that is beginning to pick up steam. Whereas two weeks ago, AXS was the only altcoin able to keep pace with Bitcoin’s rally, this weekend saw a number of tokens match Bitcoin’s rally, including the more prominent DeFi tokens such as Uniswap, Compound, and AAVE.

Meanwhile, meme-tokens Dogecoin and Shiba have generated unexpectedly high returns due to their strong rally over the weekend. Other altcoins such as LUNA and DOT have also had solid rallies that have outperformed other tokens on the market.

This week traders are advised to keep a close eye on coins and tokens in the middle of particularly strong rallies such as market leader Bitcoin or Ethereum and purchase if there are any dips in price. It may also be possible that smaller market cap tokens may soon go on strong bull runs this week as the rest of the market continues to recover. As the current reigning market leader, Bitcoin’s continued recovery will benefit altcoins across the board, as the rest of the market will likely follow Bitcoin’s trajectory.

However, if Bitcoin prices push past the $45,000 level, traders and investors are advised to be cautious when entering a BTC position, as Bitcoin may enter a final round of corrections to conclude its current corrective wave according to the Elliot Wave Theory. Ultimately how harsh this wave of corrections will end up being will depend on how far this current recovery can continue.

Despite most analysts not anticipating Bitcoin to reach the $50,000 level in this current round of recovery, it is likely that Bitcoin will not hit a new low this year if it can maintain its positive momentum.

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