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News | Crypto Converter | Crypto Calculators |
Ethereum battles leadership turmoil and market uncertainty: Can it hold $2.7K? |
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Key points: |
Ethereum faces governance turmoil and competition as leadership conflicts and controversial treasury investments raise concerns about the network's stability. Ether must hold the $2,700 support level to avoid a deeper correction, with over $1 billion in long liquidations looming below $2,650.
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News: Ethereum's uncertain trajectory amid internal and external pressures - Ethereum remains the dominant smart contract blockchain, but its future is becoming increasingly uncertain. As the crypto market evolves, Ethereum faces challenges on multiple fronts, from internal governance conflicts to external market volatility. |
The Ethereum Foundation's controversial $165 million DeFi investment, combined with conflicts of interest among researchers, has raised concerns about its neutrality. Additionally, the ongoing gas limit debate highlights Ethereum's struggle to scale while competitors like Solana and Binance Smart Chain continue gaining traction. |
Externally, Ether's price remains vulnerable to broader economic shifts. Following U.S. President Donald Trump's new import tariffs, ETH briefly plummeted to a three-month low of $2,150 before recovering above $2,800. However, analysts warn that if Ether falls below $2,700, it could trigger over $1 billion in leveraged long liquidations and open the doors for a deeper correction. |
Ethereum's governance and market stability in question - Ethereum's leadership has been under scrutiny, particularly after two Ethereum Foundation researchers—Justin Drake and Dankrad Feist—took high-profile advisory roles at EigenLayer, a restaking protocol. The controversy over their involvement, which allowed them to receive lucrative token allocations, led to their resignation but left lasting doubts about Ethereum's governance and decentralization. |
Adding to the uncertainty, the Ethereum Foundation recently invested 50,000 ETH ($165 million) into DeFi protocols such as Aave and Lido to replenish its shrinking treasury. This move, while potentially beneficial, has sparked debate about Ethereum's financial stability and long-term dominance. |
Meanwhile, Ethereum's ongoing gas limit debate has added another layer of complexity. Some developers argue that increasing the gas limit will reduce transaction fees, while critics warn that doing so could centralize network validators, harming decentralization. |
Ethereum price outlook: Can it hold $2,700? - While Ethereum's fundamentals remain strong, its price outlook hinges on key technical levels. Analysts highlight $2,700 as a critical support level—if breached, ETH could drop to $2,300, triggering cascading liquidations. |
Marcin Kazmierczak, COO of RedStone, emphasized Ethereum's long-term potential despite short-term volatility: |
"While ETH's price may fluctuate with broader market sentiment, its fundamental value proposition remains remarkably strong. The network has evolved into a sophisticated financial ecosystem, processing over $30 billion in daily transactions across its layer-2 networks." |
Market sentiment remains cautiously optimistic, with even Eric Trump, the U.S. president's son, weighing in on Ethereum's potential, telling his 5.4 million X followers that "it's a great time to add ETH." |
With Ethereum facing internal and external challenges, the next few weeks will be crucial. If ETH can maintain its $2,700 support, it may stabilize and regain momentum. However, a break below could lead to steeper losses, adding to the uncertainty surrounding Ethereum's future dominance in the crypto market. |
Bitcoin hashrate hits record high, but trade war fears threaten a $90K retest |
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Key points: |
Bitcoin's hashrate reached an all-time high of 833 EH/s, signaling robust network security, but transaction fees remain at multi-year lows. Growing U.S.-China trade war tensions have reignited Bitcoin's volatility, with analysts warning that BTC could test $90K if selling pressure intensifies. Traders eye key support levels at $97K and $93K, with potential downside risks increasing if these levels fail to hold.
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News: Hashrate surges, but mining profitability declines - Bitcoin's hashrate has soared to a record-breaking 833 EH/s, reflecting the network's increasing computational power and security. However, despite this milestone, mining profitability has stagnated, largely due to historically low transaction fees. |
According to The Miner Mag, pre-orders for mining hardware have slowed after a surge in demand leading up to the April 2024 Bitcoin halving. While institutional investment has fueled Bitcoin's mining expansion, miners are now grappling with reduced fee revenue, making it harder to sustain operational costs. |
The upcoming Bitcoin difficulty adjustment, expected to increase by over 6%, will push mining difficulty to a new all-time high, further straining miners' profitability. If transaction fees remain low, smaller miners could struggle to maintain operations. |
Market reaction: Bitcoin faces volatility amid trade war concerns - Despite Bitcoin briefly reclaiming the $100,000 mark, the relief rally was short-lived. China's retaliatory tariffs on U.S. products, including crude oil and agricultural goods, sent Bitcoin sliding back to $98,000. This comes after Trump's tariff threats on Canada and Mexico, fueling global trade war fears that have rattled both traditional markets and cryptocurrencies. |
Analysts warn that BTC could retest $90K if macroeconomic conditions worsen. According to crypto trader George, Bitcoin's "golden zone" support is between $93K and $95K, and failure to hold this range could trigger a steeper correction. |
What's next? Traders watching $97K and $93K levels - Bitcoin's realized price distribution shows strong support at $97K, making it a critical level for traders. A break below this could trigger over $1.3 billion in leveraged long liquidations, according to CoinGlass data. |
However, some analysts remain optimistic about BTC's mid-term outlook, suggesting that if Bitcoin can hold above $97K, it could regain momentum and push toward new all-time highs later this month. |
Market participants now await Trump's upcoming trade negotiations with Chinese President Xi Jinping, which could determine the next major move for Bitcoin and global risk assets. |
Exchange watch: WazirX warns of repayment delays, Coinbase seeks banking clarity |
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Key points: |
WazirX urges creditors to approve its restructuring plan, warning that repayment from the $235M hack could be delayed until 2030 if rejected. Coinbase presses U.S. regulators to confirm that banks can provide crypto services, aiming to remove barriers restricting the industry's access to financial infrastructure.
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News: WazirX's restructuring plan faces creditor vote - Indian cryptocurrency exchange WazirX has warned that creditors affected by its $235 million hack may not see repayments until 2030 if they reject the company's restructuring proposal. |
The exchange is pushing for approval of a court-backed restructuring plan, which was sanctioned by the High Court of Singapore on January 23. If accepted, the plan would allow WazirX to restart operations by April 2025, relaunch its platform, and begin distributing funds to affected creditors. |
Under the proposed framework, WazirX will establish a new decentralized exchange business, allowing for repayments through profit-sharing and recovered assets. Additionally, creditors will receive recovery tokens representing claims that could benefit from future profits. |
However, if creditors reject the plan, WazirX has warned that legal complications—including ownership disputes—could significantly prolong the repayment timeline. Liquidation, if pursued, could further reduce asset value, and users may have to wait up to five more years to recover their funds. |
The exchange emphasized that delaying the process could cause creditors to miss out on crypto market bull runs, reducing the value of their eventual payouts. |
The upcoming vote, which is expected to be completed within three months, will determine the next steps in resolving WazirX's financial crisis. |
Coinbase pushes U.S. regulators to allow crypto banking services - Meanwhile, Coinbase is pressuring U.S. financial regulators to clarify the legal status of crypto banking services, arguing that state-chartered banks should be allowed to provide and outsource custody and execution services for digital assets. |
In a letter addressed to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the FDIC, Coinbase urged authorities to remove existing regulatory barriers that prevent banks from fully engaging with crypto businesses. |
Coinbase specifically criticized an OCC interpretive letter that requires a complex application process for banks interested in offering crypto services. The company argued that current federal laws already permit banks to operate in the crypto space but that regulatory uncertainty has stifled growth. |
The letter is part of a broader legal battle between Coinbase and U.S. financial agencies, including the Securities and Exchange Commission (SEC) and the FDIC. The crypto exchange previously sued these agencies in June 2024, alleging a coordinated effort to block banks from serving digital asset firms. |
With President Donald Trump's administration now in office, the crypto industry is hopeful for regulatory changes that could ease restrictions and allow traditional banks to engage more freely in the crypto market. |
What's next? |
WazirX creditors vote: The restructuring plan vote will determine whether creditors receive faster repayments or face prolonged uncertainty. U.S. crypto banking clarity: If regulators respond to Coinbase's demands, it could open the door for banks to officially provide crypto custody services, a move that could reshape the industry.
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Both developments highlight the ongoing legal and financial struggles within the crypto space, where companies are fighting for survival and regulatory acceptance in a rapidly evolving market. |
Regulatory spotlight: Hong Kong expands crypto oversight amid market growth |
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Key points: |
Hong Kong's Securities and Futures Commission (SFC) plans to hire eight new staff members focused on crypto regulation, market surveillance, and enforcement. Despite facing a budget deficit, Hong Kong remains committed to strengthening its regulatory framework, including plans for a stablecoin licensing regime.
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News: Hong Kong strengthens crypto regulation with new hires - Hong Kong's Securities and Futures Commission (SFC) is doubling down on its efforts to regulate the cryptocurrency industry by expanding its regulatory team. According to a new two-year budget plan presented to the Legislative Council (Legco), the SFC will add 15 new employees, with over half of the roles dedicated to crypto oversight. |
The move signals Hong Kong's increasing commitment to tightening market surveillance and ensuring compliance among virtual asset firms. "Eight of the proposed new headcount is for enhancing the staffing support for virtual asset regulatory regimes, market surveillance and enforcement investigations," the budget report stated. |
Despite a forecasted $13 million budget deficit, the city continues to prioritize digital asset regulation, reinforcing its ambition to become a key crypto hub in Asia. |
Hong Kong's crypto push amid budget constraints - The SFC's decision to expand its crypto regulatory team comes as Hong Kong faces economic challenges. The city has frozen hiring in three of the last five financial years, yet it is now prioritizing virtual asset oversight. This suggests that crypto regulation remains a key strategic focus, even amid broader financial constraints. |
In June 2023, Hong Kong introduced a licensing regime for crypto companies and later proposed a stablecoin licensing framework. While the stablecoin bill is still under discussion, the latest regulatory push underscores the government's long-term commitment to fostering a structured and compliant crypto market. |
What's next? - As regulatory clarity increases, Hong Kong is positioning itself as a major player in the global digital asset landscape, even as other regions take a more cautious approach. The expansion of its regulatory team may boost investor confidence and attract more compliant crypto firms to the region, further cementing its reputation as a leading crypto hub. |
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More stories from the crypto ecosystem |
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Interesting facts |
Bitcoin transactions can take place on a satellite network. In 2018, Blockstream launched a satellite service that broadcasts Bitcoin blockchain data across the globe, allowing users to send and receive Bitcoin transactions even in regions without internet access, enhancing accessibility and decentralization. The Bitcoin Art Museum opened in 2021 in Miami, Florida, and focuses on showcasing art related to Bitcoin and the cryptocurrency ecosystem. It is one of the notable Bitcoin-themed art museums and highlights the growing connection between blockchain technology and the art world, providing a space for artists and enthusiasts to explore the cultural impact of Bitcoin. Ethereum's London Hard Fork (EIP-1559), implemented in 2021, introduced a new fee model for Ethereum transactions, where a portion of each transaction fee is burned. This deflationary mechanism has reduced Ethereum's circulating supply by millions of ETH, creating upward pressure on its price and increasing the network's sustainability.
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Top 3 coins of the day |
Ondo (ONDO) |
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Key points: |
At press time, ONDO was trading at $1.45, reflecting a 0.52% increase over the last 24 hours. The token emerged as one of the top gainers in daily trading activity on CoinMarketCap.
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What you should know: |
Ondo's price closed at $1.45 after fluctuating between $1.29 and $1.45 during the session. The price largely remained within the Bollinger Bands, with the lower band at $1.12 acting as immediate support and the upper band positioned at $1.64 as resistance. The RSI closed at 51.69, signaling neutral momentum, indicating no clear dominance by buyers or sellers at this stage. Trading volume stood at 1.33K, showing moderate activity. While this reflected some level of market interest, a significant increase in trading volume could drive stronger trends in either direction. Support near $1.12 and resistance at $1.64 remain critical zones to monitor. A drop below $1.12 could lead ONDO closer to the $1.00 mark. Conversely, if the price breaches the $1.64 resistance level, it might pave the way for a rally toward the $1.75 zone. |
Raydium (RAY) |
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Key points: |
At press time, RAY was trading at $6.26. A minor decline of 0.95% was reflected for the token over the last 24 hours.
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What you should know: |
Raydium's price had shown slight volatility, closing at $6.26. The price largely traded within the lower half of the Bollinger Bands, suggesting bearish dominance during the session. The lower band stood at $5.43, serving as immediate support, while the upper band was positioned at $8.37, offering a potential resistance level. Moreover, the MACD reflected bearish momentum as the MACD line stayed below the signal line throughout the day. However, the shrinking size of the red histogram bars indicated that selling pressure had started to diminish, leaving room for potential price stabilization. Trading volume had increased significantly, reflecting heightened activity among participants. This surge in volume has the potential to amplify price movements, depending on which side—buyers or sellers—assert dominance. Support near $5.43 and resistance at $8.37 remain critical zones to monitor. If RAY breaches the $5.43 support level, further losses could push the price toward $5.00. Alternatively, a recovery above $7.00 might rekindle bullish momentum, driving the price closer to the upper resistance zone of $8.37. |
Sui (SUI) |
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Key points: |
At press time, SUI was trading at $3.60. The token experienced a minor decline of 1.28% over the last 24 hours.
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What you should know: |
Sui's price exhibited mixed performance throughout the day, closing at $3.60. The price has stayed near its short-term support, with the SMA 9 positioned at $3.75, which also serves as a potential resistance level. Moreover, the DMI highlighted an ongoing tug-of-war between buyers and sellers, with the +DI showing early dominance, though weakening. The -DI indicated increasing bearish pressure. However, the ADX signaled a slightly weak trend, leaving the market in a consolidatory phase. Trading volume spiked significantly, reaching 76.05M, showcasing heightened participation from market players. This could either reinforce or challenge existing price levels depending on upcoming momentum. Immediate support lies near $3.27, while resistance around $3.75 aligns with the SMA 9. If SUI breaches the $3.27 support level, it could extend its losses, potentially testing the $3.00 psychological zone. Conversely, a close above $3.75 might reinvigorate bullish sentiment and push the price toward the $4.00 mark. Traders are advised to keep an eye on volume dynamics and DMI crossovers for clear directional cues. |
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