Tuesday, March 28, 2023
- Advertisment -

Trade Volumes for Bitcoin BTC and Ether ETH Indicate Differing Opinions on Assets

On Wednesday, the trading ranges for the two biggest cryptocurrencies by market capitalization, bitcoin (BTC) and ether (ETH), moved in opposite directions.

With a smaller trading range than the day before, Bitcoin traded mostly flat throughout the day. BTC finally began to decrease and was most recently down 4.3%, but the decline did not completely cancel out the significant gains of the preceding four days.

Also, BTC trading volume was lower today than it was yesterday, and the day’s low price was higher than the day’s low price from Tuesday, which is known as a “higher low.” Even though the price is lower on the day, an asset making a higher low indicates the uptrend is still continuing.

In contrast, ether’s trading range widened compared to the day before, and its price drop nullified Tuesday gains.

When combined with volume, tracking an asset’s trading range might reveal information about investor mood. The “lower low” for Ether today compared to yesterday shows that ETH holders are considering the possibility that the market will turn bearish.

It will be crucial to monitor whether ETH’s price finds support around $1,640. Significant levels of activity are visible close to the present trading level in ETH’s Volume Profile Visible Range (VPVR). Price movement has a history of becoming “sticky” at these large volume nodes because liquidity is simple to obtain.

Due to the previously locked staked ether becoming available for sale, ETH investors may be concerned that the impending Shanghai upgrade would lead to selling pressure.

According to Ethereum.org, there are currently 17,577,231 ETH staked, equivalent to over $29 billion, with an annual percentage rate (APR) of 5.2%.

The extent to which it makes economic sense to do so is a counter-thesis to the idea that ETH will be sold off after the upgrade. The price of ETH today ($1,650) is higher than the price of ETH in December 2020 ($600), when staking started. However, investors might find the current APR to be convincing enough to keep betting given how it compares to other opportunities. In addition, eliminating the necessity to keep ETH locked up permanently during the staking process would encourage more staking rather than less. As a result, new stakers who wish to participate will probably balance out existing stakers who are withdrawing ETH to collect profits.

Patrick Huston
Patrick Huston
As a senior editor, Patrick is a professional who is in charge of putting out business news. As a senior editor, Patrick is likely to be in charge of the duties of junior editors and writers, make sure the content is correct and high-quality, and work with other departments to make sure the business news is published on time. Patrick knows a lot about business and the latest market trends. He uses this knowledge to choose and edit stories that are both interesting and useful to readers. He also works with reporters and analysts to come up with insightful pieces that help readers keep up with the latest business news. Patrick is a very important part of keeping the public informed and interested in important business issues. He is passionate about journalism and strives for excellence.

Disclaimer: We want to be clear that the information on Bollyinside.com, including news, articles, reviews, and opinions, is intended for reading and knowledge purposes only. While we strive to provide accurate and up-to-date information, opinion and news, we cannot guarantee the completeness, accuracy, reliability, suitability, or availability of any information. The opinions expressed on this website are those of the authors and do not necessarily reflect our views. We recommend that readers conduct their own research and seek professional advice before making any decisions based on the information provided on this website. We are not responsible for any loss, injury, claim, liability, or damage related to the use of this website or the information contained herein. Read more


Similar News From Web Could not fetch related news topics.
- Advertisment -