Ethereum – WHY IS IT LOSING STEAM? WHY IS ETHEREUM DROPPING?

what is going on guys hopefully you guys are having a good day let us get into the market before discussing the topic that I wanted to bring up which was aetherium and ye theorem continues to lose steam what is it about the market perception of aetherium that is causing it to lose value over the last few months so the market cap is currently at 334 billion it’s about 3 to 4 percent down since yesterday Bitcoin dominance continues at a strong 44 percent meaning that the all coins in general are losing steam in comparison to Bitcoin if you saw a video of mine that I did a while back I was talking about how over 800 new alt coins were formed in 2017 most of them coming after the first half of 2017 with not a lot of new money coming in besides that little rally that we had or the big rally that we had towards the end of 2017 so the money encrypt that was currently stretched thin and Bitcoin dominance continues to rise now bitcoin is currently at around 8700 aetherium is at 537 and this is the highlight for today this is the guy that we want to talk about today now why is a theorem losing steam so towards the beginning of 2018 when we had those various dips after the parabolic run we saw a theorem actually stubbornly holding its ground and even losing less value than Bitcoin has you know towards the the January dips are right around the January dips Bitcoin was losing value at a faster rate than the etherium and if you remember you know we were even talking about the flipping happening which is the was was the expected event at which aetherium will overtake Bitcoin as a number one spot with regards to market cap if you look at the market cap now that theory seems laughable right like a theory ‘m is is almost 1/3 of bitcoins market cap so it seems so far in the distance and so out of the realm in reality that that it you know it appears to be a joke at the at the current time well I found this data here on sand base and I’ll link to this in the description but this is really important and what this outlines is it lists all of the projects that have raised funds right through icos or crowdfunding events that have raised funds using a theorem now for those of you that are familiar with blockchain and are in tune with blockchain news you’ll know that aetherium is currently the number one platform that blockchain project used to raise funds now why is that well one it is really easy you know relatively if you’re a coder it’s really easy to create an e rc 20 token it’s very easy if you’re a blockchain project and you want to start an ICO or a crowd fund to create a generic ERC 20 token that coincides with your project so that you can give that as as a reward for a token sale to those who invest in in your project so creating an e rc 20 token is really easy there’s even instructions on the etherium site as you can see here that goes into what it takes in order to create a token and how to set that up from a coding standpoint and to the thorium is the king of smart contracts platforms as it currently stands meaning that token sales can be handled through smart contracts on aetherium so not only can you create your token based on on the etherium on the etherium ERC 20 standard but you can you can manage your crowdfunding campaign through aetherium by creating smart contracts so you know say that that you promise to give somebody a certain amount of your token in exchange for a certain amount of aetherium that can be facilitated as a transaction in aetherium so or on aetherium so that is that is why it continues to be a really convenient and practical way to crowdfund your blockchain project so this right here sorry not this but this right here outlines all of the blockchain projects that have used aetherium for crowdfunding now the reason this is significant is because it shows you the balance of aetherium that they currently have collected through crowdfunding and some of these balances are just outrageous so you’ll see EOS for instance which is the the biggest player at the moment in terms of aetherium Holdings has 270 million dollars in aetherium d GD has 251 million dollars in etherium PBT has six million dollars in aetherium you’ll see status has a hundred and forty four million dollars in etherion these are that’s just crazy and a lot of these projects you will recognize the names because we trade a lot of these now this seems like an unintended consequence of the way that that aetherium is set up right they obviously wanted to make it easy for people to create ERC 20 tokens they wanted to make it easy to facilitate smart contracts and crowdfunding etc and they’ve said in the past vitalik and a bunch of other high-level people involved in etherium have said in the past they don’t care about the market cap they don’t care about the price they don’t care about the flip inning that is not part of their objectives this is potentially a chaotic situation where you have large amounts of aetherium that were acquired through token sales held by these blockchain projects especially ones like EOS that that you know are seen as an ethereal a direct Ethier and competitor so EOS can essentially dump just you know just logically thinking about this EOS can dump the etherium on the market not only will that essentially tank the etherium price but they can also buy their own token on the market which will increase their value so you can actually exchange your aetherium for EOS and if you’re a direct competitor of aetherium you know might be able to jerry-rig the scenario in your favor at least for the time being so there are a few people on Twitter that are involved in blockchain whale pandas one of them this guy named Wilhelm or his username is claptrap Excel that have tracked large amounts of etherion movements you’ll see here he’s talking this is just a couple days ago on March 18th he’s talking about a trail of 417,000 aetherium that have moved from an EOS crowd sale wallet into BitFenix right and so if it’s if it’s on bit fin X you can assume you know they’ll be they’ll be dumping etherium on BitFenix or or you know whatever exchange they move it onto in large quantities when they feel like it or when they feel like that they need to influence the pricing at some point in their favor so that is one of the reasons why I think the market perception that aetherium is is declining in value is because there is so much ethereal that are held by other blockchain projects and it can essentially be dumped at any point the second major reason in my opinion that I think aetherium is losing market value as well as declining in market perception is because of the increased difficulty and increased hash rate right so you’ll see that the difficulty in mining etherium and the hash rate have been increasing steadily since November I apologize if these lines are too thin for you to read I’ll leave this in the in the description but the gist of it is that you’ll see the hash rate and difficulty have been increasing steadily since November while the reward right for the the block reward has actually decreased according to this article on brave new coin has decreased from 5/8 to 3/8 right so the difficulty is increasing and the reward is decreasing so that is obviously going to decrease the interest of people mining because the profitability is just taking a nosedive right it’s down over 70% from Peaks established in both June 2017 and January 2018 and lastly we’ll take a look at the technicals obviously as we said before the technicals cannot tell you the whole story so the issue with the blockchain projects holding large amounts of eath or the increase in difficulty or hash can’t be explained by these charts that’s why it’s so important to take fundamental and technical analysis in conjunction with one another now there are a few indicators here telling me that the price of aetherium is actually under priced obviously that is in comparison to previous pricing the MACD you’ll see is looks like it’s about to confer converge this theorem has not been oversold since September 2017 and the time that is spent here is very short in comparison to this it looks like we’ve been under sold for almost a week now it continues to trade below the 200-day and the 100-day EMA obviously this magenta line right here looks like this is the major support level right now at around five hundred and thirty dollars we haven’t seen this pricing since December of last year before this parabolic run-up as you can see the volume is just stagnant right it looks like it’s shot to death we had a few major sell bars including this this long red one here and that could be a consequence of what we discussed earlier if you look at a number of indicators that measure the mean in some way so if you look at the linear regression obviously we’re currently below that on the lower end of the linear regression line below the the mean right here in the middle if you look at something like the Ichi mocha cloud we are currently well below the mean if you look at something like the Bollinger Bands we are also currently well below the mean and this is on the the 1-day chart so there there are a few indicators that that are telling us right now that you know aetherium is undervalued I do think a theorem in the long run will be fine will the Flippen ever happen I don’t know you know doesn’t it doesn’t seem like it it at this point but but you never know because at the end of last year towards the end of last year we were marveling at how ëthere ium was was holding strong even towards the beginning of this year through through the dips theorem look like it was handling those dips way better than Bitcoin was so these things can change in in an instant it feels you know like like a long time and when you when you do take a look at something like the market cap and you see that a theorem is at 50 billion and bitcoins at 150 billion it seems ridiculous to think that this will ever overtake this but you know again these things changing in an instant it changes faster than we think but we currently are monitoring the markets every single day so it’s hard to get a grasp of long-term thinking right or long-term projection alright guys that is it for the video I hope that I provided you with some insight as to why aetherium might be losing steam right now apart from what the technicals are showing go ahead and subscribe to the channel hit that notification bell leave a comment if you like sign up to the patreon for the trade alerts and the weekly pic join the discord it’s 100% free stay safe out there we’ll see you in the next one

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.