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A Severe Ethereum (ETH) Correction is Expected by Traders After 125% Rally: Here's Why

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Sat, 02/22/2020 - 17:24
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  • Ethereum is starting to lose momentum as bitcoin is at risk of closing below a key support level.

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Contents

Ethereum (ETH) has front run bitcoin throughout the past 42 days. As the bitcoin price surged by around 50 percent against the USD, ETH recorded a 125 percent rally. The explosive upsurge of ETH may be coming to an end traders warn, if BTC begins to correct.

Ethereum has been a more volatile version of bitcoin during the recent rally

During a bull cycle, major alternative cryptocurrencies (altcoins) tend to precede bitcoin with strong upward momentum.

It took less than two months for Ethereum to recover from around $120 to $280, demonstrating a vertical price movement for the first time since June 2019.

Altcoins tend to outperform bitcoin amidst an ongoing rally, but during consolidation, most altcoins are at the mercy of bitcoin.

In the past two months, for instance, bitcoin has seen an extended rally with minor pullbacks, establishing solid support levels as basis for a stronger upside movement.

In contrast, altcoins like Ethereum spiked up by 80 to 130 percent with little to no pullback, leaving it vulnerable to a steep pullback.

DonAlt, a renowned cryptocurrency trader, said on a livestream that if the bitcoin price begins to pull back to the $7,000s, the altcoin market is highly likely to experience a steep correction.

Ethereum has been one of the best performing cryptocurrencies year-to-date and as such, DonAlt emphasized that the chart of ETH at larger time frames are showing strength compared to other cryptocurrencies.

Still, if the weekly candle of bitcoin closes below a key support level at $9,550, the trader noted that the market could start to correct from its recent upsurge.

The monthly chart of bitcoin also indicates it is vulnerable to seeing an evening star formation, which typically indicates a local top.

Cryptodonalt
Source: Twitter

Some traders believe ETH is preventing the market from a large crash

Major altcoins including XRP, EOS, and Cardano (ADA) have already shown rejection at larger time frames, especially at a weekly level.

Ethereum is the only top cryptocurrency in the market to have maintained a green weekly candle, two days before close on February 24.

One trader known as Mac said “ETH is currently keeping BTC alive and will probably keep it alive for awhile,” alluding to the fact that Ethereum has provided the cryptocurrency market with momentum in the last two weeks.

The breakdown of ETH followed by a pullback of bitcoin below $9,500 and potentially in the low $9,000 region could spell a local top in the cryptocurrency market for the foreseeable future.

The total capitalization of the cryptocurrency market also showed rejection at $300 billion, struggling to rebound above August 2019 levels.

About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.

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Bitcoin (BTC) Scammers Impersonate Bill Gates and Endanger Almost 30K YouTubers

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Sun, 03/29/2020 - 19:38
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  • Bitcoin (BTC) scammers know no quarantines or self-isolation. Dozens of fraudulent airdrops falsely endorsed by Bill Gates ask YouTubers to send in their Bitcoins.

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Contents

Typically, fake YouTube airdrops are quite similar to each other. With the current pandemic enraging across the planet, a series of scams that impersonate Bill Gates have some distinct features.

With Bitcoin (BTC) Price Drop, Scammers are Getting Greedy

Just like in several other previous cases, the fraudsters launch fake 'live streams' on YouTube, asking users to send in their Bitcoins (BTC) in order to get redouble the initial amount.  An 'entry ticket' into to this scam starts at 0.1 BTC which is more than $650. With previous scams, it was much cheaper.

Fake YouTube Bitcoin (BTC) airdrop
Image via YouTube

The scammers also publish the URLs of this campaign, which are linked to suspicious websites. Unlike previous cases, fraudsters launch multiple live streams simultaneously. At press time of this article, at least two of them were active.

Multiple scam streams on YouTube
Image by YouTube

According to statistics, the average popularity of one live stream is about 30,000 viewers.

Very Bad Idea

Alongside that, launching fake airdrops on behalf of Microsoft's Bill Gates isn't a slam dunk for the fraudsters. It may seem ironic, but Mr. Gates is a prominent critic of cryptocurrencies, particularly of Bitcoin (BTC). He is sure that digital assets represent a kind of a ‘greater fool theory’ type of investment.

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Cryptocurrencies kill, added Mr. Gates. To him, its only use-case besides short-term speculations is illegal funding for drug trafficking:

Right now cryptocurrencies are used for buying fentanyl and other drugs, so it is a rare technology that has caused deaths in a fairly direct way.

The U.Today team will one more time state that no airdrop will be conducted without the notification from an official website of a product or token. Any YouTube, Medium, and/or Telegram announcements may shill scammers. Never send your money to unknown persons.

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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