ETH/USDT - Trading Competition - Crypto Academy / S6t4 - Homework post for pelon53.
Hello professor @pelon53,
You are welcome to my third entry of this week’s trading contest. Today, I will be trading with a coin that seeks to dethrone Bitcoin. Without wasting further times let’s move straight to business.
Q1 : Name and introduction of the project token, and which exchange it can be traded on, project/team/technical background.
For this third entry, I will be doing some fundamental analysis on ETH, this analysis will consist of the coins background, the team behind it creations and more. I will also do some technical analysis after which I will buy the coin.
Ethereum(ETH)many people consider it as the rival to Bitcoin. ETH is a decentralized blockchain that was first introduced in the year 2013, by Vitalik buterin. The following year 2014, the team of ETH project came out publicly to start an initial coin offering a way to raise funds for their project. At the ICO, one ETH was sold for $0.31. The team was able to make about $18 million worth of BTC, with a sale of over 60 million ETH tokens. Investors that purchased the asset by that time would have made about four times the money invested. Later in 2014, ETH was finally launched.
ETH blockchain allows users to be able to create and run other decentralized applications as well as smart contracts. Decentralized application are applications that are not run and controlled by any single body/authority. The smart contracts that are implemented in the ETH blockchain helps reduce/eliminate all third parties that would have been needed for a transaction to execute.
The Original consensus algorithm of the ETH is the proof of work consensus algorithm. However it is noticed that this consensus algorithm is not scalable so measures have been put in place to upgrade ETH to ETH 2.0, with the ETH 2.0 the proof of stake consensus algorithm will be implemented to increase the scalability of the blockchain.
Team of the ETH project
Below is a table containing the team members of ETH and the position they hold.
| Name | Position Held |
|---|---|
| Vitalik Buterin | Founder |
| Aya Miyaguchi | Executive Director |
| Patrick Storcheneger | Board member |
| Mihai Alisie | Co Founder |
| Vlad Zamfir | Researcher |
| Aya Miyaguchi | Executive Director |
| Aditya Asgaonkar | Blockchain Reseacher |
| Virgil Griffith | Research Scientist |
| Justin Drake | Researcher |
According to the CoinMarket cap, Ethereum is currently valued at US$3,430.25 price change in last 24hrs it + US$28.45, it has a market cap of US$412.27 Bn and a 24hr volume change of US$14.47 Bn. see screenshot below.
ETH, can be traded in almost all the exchanges we know. ETH can be traded in exchanges like Binance, Poloniex, FTX, kraken, Houbi, pancakeswap, Bitrex, gate.io, Coinbase, bitfinex, Upbit, proBit global and many more. See screenshot below.
Q2 : Why are you bullish on this token today and how long do you think it can rise?
Am confident that the surge in the price of Bitcoin will trigger an upward movement in the price of ETH. from the past when BTC is low, it affects certain coins ETH is one of them seeing how the BTC is rising these days the is a possibility for ETH to also rise aside from that another reason why am particularly bullish about this coin is, let’s take a look at the historical statistics.
From the screenshot above, on the 20th ETH closed at $2,860.46 within 48hrs it sky rocketed to $3,031.07 within a period of 7 days it gained + $354. I still have hope for ETH so once I buy my coin I will continue to monitor its improvement.
Q3 : How to parse the token? (In this part you should preferably use the knowledge you have acquired in these weeks of learning at the academy, for example follow what I learned in my class or that of my teammate.)
In this section, I will using the TradingView to perform my analysis. So I launched my ETH/USDT chart, I then set it to smaller timeframe 30 mins to be precise. I drew my support and resistance after a while a noticed a breakout at the resistance level. I then added the volume indicator which is good in determining whether the breakout is false or not. And when I added the indicator you can clearly see the green string bars which represents high volume so the breakout of a real.
I could have placed my stop loss and take profit setup but I needed more confirmation so I added the median indicator another good indicator for determining buy and sell signals. It has two clouds the purple which signifies a sell entry and a green cloud which signifies a buy entry. From the screenshot above, when I added the median indicator, I saw a green cloud which indicates a buy entry so I can now go ahead and place my stop loss take profit setup. I entered the market at $3430 with a stop loss set at $3406 and a take profit of $3466. See screenshot of the purchase order on my Binance app.
Screenshot From Binance App
Q4 : My Plan to hold it for a long time or When to Sell?
I definitely would like to hold this asset for about 2 days and monitor it and see it’s movement become with the analysis o have done, I hope it will rise if not at that moment but it will surely rise within 48hrs. I have my technical analysis to sport me. Though the might be a pull back after the breakout in the resistance, I advise we don’t let our emotions get in the way and sell but rather hold on to it for a while. It might only pull back a little to gain momentum and rise more.
Q5 : Do you recommend everyone to buy? and the reasons for recommending/not recommending.
Yes I would recommend this asset to everyone to buy. My reason for doing that is. The are certain developments that have occurred and I believe it would help boost the price of the asset even further. What development I’m I taking about?? It was recently published that tip banks in Israel have started accepting ETH as payment. See screenshot below
When news like this are published or especially when huge financial institutions start accepting ETH as a form of payment method, it gains attention in the market casing it’s price to rise. And I believe it would be one for the reason we should buy this coin.
Conclusion
In Today’s trading competition, I have taking my time to talk about ETH project, I also taking about its founder and the team involved in its creation.
I also mentioned the consensus algorithm of the ETH blockchain which is proof of work, but for the ETH 2.0 it uses the an algorithm called proof of stake. ETH can be exchanged in Coinbase, Poloniex, Binance, Houbi, Bittrex, Kraken and the exchanges that are available.
Upvoted! Thank you for supporting witness @jswit.
