Abnormal ETH Transactions Attracted a Lot of Attention Last Week – BTC, ETH, LTC Price Analysis, 15 June, 2020
Last week, a couple of mysterious transactions took place on the Ethereum blockchain. Their initiators paid millions of dollars in fees. For example, according to etherscan.io, for a transaction included in block #10237208 with a value of 0.55 ETH (approximately $136.41), a transaction fee of 10,668.73185 ETH (approximately $2,645,952.19) was paid:
These abnormal transactions attracted a lot of attention from the crypto community and triggered an active debate. Some claimed that the initiator of the transactions swapped the fee field with the amount-to-send field by mistake:
However, others disagree. They associated these transactions with money laundering:
Later, the co-founder of Ethereum, Vitalik Buterin, joined the discussion and clarified the reasons behind these suspicious transactions – a crypto exchange held as a ransom by hackers:
The cryptocurrency market has dipped significantly over the last 24 hours. At the time of writing, according to Coin360.com, one Bitcoin costs €8,058.33 (-3.19%), one Ethereum – €198.31 (-4.82%), and one Litecoin – €37/76 (-4.04%):
Source: Coin360.com (Daily crypto market performance)
Now let’s dive into the technical side of the charts of the major cryptocurrencies against the euro.
In the 1-week time frame (1W), last week, BTC/EUR formed a «Bearish Engulfing» pattern after the «Doji» candlestick:
Theoretically, the «Bearish Engulfing» candlestick formation is one of the most common trend reversal patterns.
However, we would like to point out that in the 4-hour time frame, BTC/EUR is still at the level of the previous two local lows:
In our view, a price drop below the level of the previous local lows will validate the bearish signal.
The daily chart (1D) shows that the price of Ethereum has dropped below the psychological level of €200 per one digital coin:
Nevertheless, ETH/EUR keeps fluctuating within an «ascending channel», as we can see in the chart above.
In the short-term, the lower line of the channel is acting as a support. However, if the pair breaks down, the bears may gain control of the market and attempt to sink the price to the level of €180.
In the 1-day tame frame (1D), recently LTC/EUR has been moving near the 30-day Moving Average (MA 30) and the 90-day Moving Average (MA 90):
As shown in the chart above, both moving averages continue to go sideways – an indication of price consolidation.
We expect the price of Litecoin to highly correlate with the price movement of Bitcoin over the current week.
Stay updated on everything Bitcoin-related with Bitvalex. Bitvalex is a licensed digital wallet and cryptocurrency exchange; learn more about us and blockchain technology and sign up to use our services.
The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.