- Ethereum Casper Update takes shape!
- Canadian Government is open to BTC Investment Funds!
- Estonia dose not manage its own Crypto Currency!
- Russia: Crypto Currencies should be regulated by the end of 2017!
- ETH Course Analysis for Week 36/2017!
Vitalik Buterin is currently working on the white papers for the new Ethereum version Casper. For a long time detailed information about Casper was hidden - so the more surprising Buterin's step to pick up the long-awaited concept.
With Casper it is above all the change to the proof-of-stake consensus. At least, this is a long-term goal, the start of which will be the Casper upgrade.
Casper promises a more efficient ecosystem. By switching from the proof-of-work algorithm, transactions are to be carried out without much energy being expended. Energy is a common criticism of the proof-of-work algorithm currently used by Ethereum.
The introduction of Casper would be a fundamental and decisive change for the Ethereum network. The white papers are therefore submitted to the Ethereum Developer for control.
Casper will not make a complete change from Proof of Work to Proof of Stake. Instead, one would first want to use a hybrid model of both consensus algorithms. Specifically, Proof of Work is still used for most of the blocks in the network, only every one-hundredth block is checked as a checkpoint using the proof-of-stake mechanism.
In order to prevent specific attacks, attackers are to be punished with the deduction of their coins. The hybrid integration of the new Proof of Stake is intended to reduce any difficulties to its extent.
The three white papers from Buterin are now waiting for feedback from Ethereum developers.
The Canadian regulatory authority British Columbia Securities Commission (BCSC) has approved the registration of an investment company with a crypto currency focus.
The Vancouver-based investment company First Block Capital Inc. would like to focus entirely on crypto investments and to issue a Bitcoin investment fund as soon as possible. Of course, there is the issue of regulatory approval. Over the past few months, banks and investment firms have been trying to list financial products such as bitcoin ETFs on the world's stock exchanges - often with a negative outcome.
The apparent openness of the BCSC could create framework conditions in Canada that provide an investment-friendly climate for investments with digital currencies as the underlying.
According to Zach Masum, manager at BCSC:
Zach Masum also emphasizes in the statement that other investment companies are invited to inform themselves about the regulation of crypto currencies at BCSC in order to set up crypto investment products as well. Such statements reinforce the impression that Canada is hoping for blockchain technology and related investments.
With regard to the restrictive regulation of some countries in recent weeks, such as in China, Canada could become more important in the future in terms of crypto investments. It was previously reported that the Canadian Financial Market Authority of the Quebec region, Autorité des marchés financiers (AMF), has for the first time regulated an ICO project and granted the token the legal status of a security.
The news that Estonia is considering its own digital currency has been reached by Mario Draghi, the President of the ECB.
Mario Draghi has responded quickly to this message and follows the opinion that a state currency within the euro zone does not work.
Draghi said:
The idea came from the Managing Director of the Estonian e-Residency program, Kaspar Korjus, who had suggested that an 'Estcoin' could be used as a digital currency for the country. It would allow Estonian citizens to document digital documents from anywhere in the world.
The adoption of an Estcoin would be a milestone for crypto currencies and would show a widespread adaptation. However, it seems that despite the potential benefits of the national digital currency, the euro zone will not grant the project of an Estcoin. Added to this is the fact that, according to China's latest ICO ban, global sentiment remains mixed with ICOs. For these reasons, the idea of issuing its own digital currency was put on hold by the government.
The Russian Finance Minister Anton Siluanov announced that by the end of 2017 crypto currencies should be regulated in Russia.
According to a report by Reuters, Anton Siluanov expressed his opinion on crypto currencies on the Moscow financial forum last Friday and has made a relatively clear statement.
Anton Siluanov said:
Even after regulation, citizens and companies should be able to buy and sell digital currencies. The legal classification will have a strong impact on the given securities regulations.
The Russian central bank has already emphasized its openness to digital currencies and will work together with the Treasury and other public authorities to regulate.
In particular, according to the ICO ban of China and the restrictive proceedings against crypto currencies, such pro crypto currency statements by government agencies are very positive. It is not long ago that Russia self has gone against crypto currencies.
How positively the regulation of Russia impacts on crypto currencies, however, can not be said yet. After all, it is a very narrow ridge between too much and too little regulation. Accordingly, specific legislative proposals must be awaited in order to make clear statements.
By the news from China, the Ethereum course fell over the week and is currently at 244.80 EUR (294.71 USD).
Image based on data from Kraken.com
- The course has fallen during the week.
- After a rapid fall to EUR 237.21 (USD 285.49), the course was able to recover again but fell back to this week's minimum.
- Short-term support is at the minimum weekly rate of 237.21 EUR (285.49 USD), short-term resistance at 248.50 EUR (299.08 USD).
As in the case of Bitcoin, the news regarding an ICO ban in China has also broken through Ethereum's upward trend. This is even more understandable in the case of Ethereum since many ICOs have been implemented on the Ethereum blockchain. The pattern is similar to that of Bitcoin; the course has fallen sharply after the announcement from China, was able to recover somewhat, finally to fall again on Friday, after some media of an exchange ban in China, again.
The MACD (second panel from the top) is correspondingly negative, but the MACD line (blue) is above the signal (orange).
The RSI (third panel from the top) stands at 47 and is therefore bearish.
Overall the 60min chart is bearish according to trend and indicators. The most important support is described by the week minimum and is EUR 237.21 (USD 285.49). The most important resistance is described by the current downtrend and is 248.50 EUR (299.08 USD).
To further assess of the future price movements, the medium- and long-term charts will again be considered. Let's consider the first 240 mins. chart:
Image based on data from Kraken.com
The uptrend in the last month has been rebalanced due to the developments in China, so the price is even slightly lower than in early August. Accordingly, the price is not only low among the exponential moving averages of the last one or two weeks, but also a death cross between these mean values.
The MACD is, as one might expect, correspondingly negative, as is the MACD line under the signal. The RSI was almost over-sold for a short time and is currently only 36. Correspondingly, the 240 mins. chart is bearish. The most important support is the monthly minimum, which is 238.03 EUR (286.48 USD). The resistance is described by the exponential moving average and is EUR 268.92 (USD 323.65).
Image based on data from Kraken.com
Here are the Fibonacci retracement levels regarding the development between the end of April and the beginning of June. We can well see that the recent events have fallen below the 23.6% Fib retraction level, which is coincident with the exponential moving average over the last month and is currently testing the exponential moving average over the past two months.
The MACD is still positive, but the MACD line is currently under the signal and is about to break through the zero line. The RSI is currently at 42 and confirms the overall rather bearish picture.
The long term forecast is bearish according to price, trend and indicators. The most important resistance is defined by the 23.6% Fib retraction level and stands at EUR 272.12 (USD 327.51). The most important support is described by the 38.2% Fib retraction level, which is $ 228.40 ($ 274.89).
Disclaimer: The course analysis is from the morning and can have changed since. The price estimates presented in this post are not a recommendation to buy or sell. They are merely an estimate of me.
I wish you all a lovely Monday and a great new Week!!!
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