Ethereum: USD/ETH (ETH=) Price Could Shoot Up As JPMorgan Joins ETH Ecosystem

Ethereum: USD/ETH (ETH=) Price Could Shoot Up As JPMorgan Joins ETH Ecosystem

Ethereum: USD/ETH (ETH=) Price Could Shoot Up As JPMorgan Joins ETH Ecosystem

Ethereum (ETH) is already one of the better-performing assets this year and even overshadowed Bitcoin (BTC) in the process. The media’s attention to the increasing use of DApps and DeFi has somewhat buoyed ETH’s price with technicals there to support it.

Now, Ethereum, after two weeks of gains, is nearing $250, and JP Morgan’s deal may have something to do with this new 2020 high. The largest U.S. bank by assets is reported to be looking into merging Quorom to blockchain software company ConsenSys, according to Reuters.

Quorom is the blockchain unit of JP Morgan, and it powers the payment network IIN (Interbank Information Network) that involves more than 300 banks worldwide, with an additional 80 Japanese banks reported to have signed a letter of intent to join back in December.

The network’s role is to facilitate information-sharing for payment verification within member banks, a way to fend off money laundering. The bank also plans to use Quorom to issue its own crypto called JPMorgan Coin, which is designed to make payments faster. 

JP Morgan’s deal with Brooklyn-based ConsenSys is likely its best option after about two years of consideration for how it will revamp Quorom. Since both are linked to the Ethereum ecosystem and have been involved in initiatives in the past, the merger is deemed to be the best course of action for the two firms.

ConsenSys is a blockchain startup that is a platform for developing blockchain software services and applications. It is founded by Joe Lubin, who is a co-founder of Ethereum, in 2015.

Up to this point, there are no clear financial terms concerning the merger, and a more formal announcement will be made within the next six months.

Plenty speculates that this could be bullish for the top altcoin’s price and is another catalyst for ETH to kick off a parabolic rally. It is indeed massive considering a bank like JP Morgan to merge its project or build new ones with ConsenSys. Still, it is crucial to note that this team-up would have no impact on the IIN or the existing projects on running on Quorom, per Reuters.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 195.19.

The projected upper bound is: 294.45.

The projected lower bound is: 252.24.

The projected closing price is: 273.34.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 90.0534. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 87.95. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 9 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 168.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 14 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed up 0.440 at 270.450. Volume was 20% above average (neutral) and Bollinger Bands were 207% wider than normal.

Open     High      Low     Close     Volume___
270.900 276.000 262.620 270.450 110,547
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 227.57 169.12 175.05
Volatility: 85 70 72
Volume: 238,264 116,898 76,131

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX ETH= is currently 54.5% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect very strong flows of volume into ETH= (bullish). Our trend forecasting oscillators are currently bullish on ETH= and have had this outlook for the last 38 periods. Our momentum oscillator is currently indicating that ETH= is currently in an overbought condition.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH