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cointelegraph.com Mar 13, 2025 06:25

Ethereum falling knife warning: Is another 30% crash versus Bitcoin coming? - Ethereum’s native token, Ether (ETH), has dropped to its multi-year lows against Bitcoin (BTC), prompting analysts to predict further declines in the coming weeks.Falling knife warning furthers sell-off risks On March 13, ETH/BTC—a pair that tracks Ether’s strength against Bitcoin—dropped by over 1.50% to reach $0.022, its lowest level since May 2020.ETH’s descent is part of its multi-year downtrend that started when it established a record high of $0.156 in June 2017. Since then, it has plunged by more than 85%, underscoring Ether’s growing weakness against Bitcoin.Meanwhile, on the two-week ETH/BTC chart, the relative strength index (RSI), a momentum indicator used to measure whether an asset is overbought or oversold, has fallen to a record low of 23.32.ETH/BTC two-week price chart. Source: TradingViewTypically, when RSI drops below 30, it signals oversold conditions, potentially leading to a price rebound. However, in Ethereum’s case, RSI has continued to plunge even lower even two months after becoming oversold, suggesting that ETH’s downtrend is still accelerating rather than stabilizing.Crypto analyst Alessandro Ottaviani has described the situation as a “falling knife” scenario—a term used to describe an asset that is experiencing a rapid and steep decline, often discouraging buyers from stepping in too soon. A falling knife implies that attempting to catch the asset at a perceived low could lead to further losses if the downtrend persists.For Ethereum to signal a potential reversal, traders will be watching for RSI stabilization and reclaim of key resistance levels. That ideally begins with a rebound from the 0.022 BTC level, which had limited ETH/BTC’s downside attempts in December 2020, leading to a 300% rally.ETH/BTC weekly price chart. Source: TradingViewShould a rebound happen, the ETH/BTC pair can rally toward its 0.382 Fibonacci retracement line at around 0.038 BTC, aligning with the 50-week exponential moving average (50-week EMA; the red wave).Until then, the technical outlook suggests that ETH/BTC could remain trapped in its falling knife trajectory, with the next potential downside targets at historical support levels inside the 0.020-0.016 BTC range.ETH/BTC two-week price chart. Source: TradingViewThe lowest point of this range is approximately 30% below the current price levels.ETH/BTC fundamentals support a bearish outlookEther’s prospects of declining further against Bitcoin are rooted in factors beyond technical analysis. For instance, Ethereum currently faces strong competition from rival layer-1 blockchains, namely Solana (SOL). Related: The worst thing that happened to Ethereum — Bitcoin up 160% since the MergeVanEck noted that Solana’s decentralized exchange volume has surpassed Ethereum’s even during a steep dropoff in memecoin trading activity. Meanwhile, Solana’s volume has risen consistently in recent months, which coincides with a decline in Ethereum’s volumes.Solana vs. Ethereum DEX volumes. Source: VanEckFurthermore, the launch of spot Bitcoin ETFs has fundamentally altered the traditional crypto market cycle that used to benefit Ethereum and other altcoins.Historically, after Bitcoin surged post-halving, capital rotated into altcoins, triggering an “altseason” where ETH and other assets outperformed BTC. However, the $129 billion inflows into Bitcoin ETFs in 2024 have disrupted this cycle, draining liquidity from the broader altcoin market—including Ethereum.Bitcoin Dominance Index weekly price chart. Source: TradingViewAnother factor is Ethereum-specific selling pressure. The recent Bybit hack reportedly led to substantial ETH liquidations, with some of that value laundered via decentralized platforms like Thorchain. This absorbed sell-off may still be rippling through the market, depressing ETH’s relative value.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

FOMO: 85%
cointelegraph.com Mar 13, 2025 05:00

Ripple secures Dubai license to offer crypto payments in UAE - Blockchain payment provider Ripple received full regulatory approval from the Dubai Financial Services Authority (DFSA) to offer cross-border crypto payment services in the United Arab Emirates (UAE).The company announced on March 13 that it had secured its DFSA license, allowing it to operate in the Dubai International Financial Center (DIFC), a UAE free-economic zone with its own tax policies and regulatory framework.The announcement came almost six months after the company announced its receipt of an in-principle approval of the DFSA license. On Oct. 1, 2024, Ripple revealed that it was working to become licensed by the DFSA as it aimed to roll out its digital asset infrastructure in the UAE. Enabling blockchain-based global payments for UAE businessesWith this license, Ripple can now provide its global blockchain-based payment solutions to businesses across the UAE. The company said this allows it to cater to financial institutions looking for partners to help them use digital assets in real-world applications. In a news release sent to Cointelegraph, Ripple CEO Brad Garlinghouse said the UAE is “well-placed” to benefit from tech and crypto innovation, thanks to its early leadership and supportive environment:“We are entering an unprecedented period of growth for the crypto industry, driven by greater regulatory clarity around the world and increasing institutional adoption.”Ripple also reported that it had seen increased demand across the Middle East for cross-border payments. The company said the demand was not limited to crypto-native firms but also came from traditional financial institutions. Related: UAE to introduce legal framework for DAOsRipple becomes the first crypto payment provider in the DIFCWith DFSA approval, Ripple has become the first blockchain-enabled payments provider to operate within DIFC’s free zone, according to DIFC CEO Arif Amiri.”We are thrilled that Ripple is deepening their commitment to Dubai by securing a DFSA license that makes them the first blockchain-enabled payments provider in DIFC,” he said.The license allows Ripple to tap into opportunities in the UAE and the broader MENA region, he added.Magazine: The Sandbox’s Sebastien Borget cringes at the word ‘influencer’: X Hall of Flame

FOMO: 90%
cointelegraph.com Mar 13, 2025 03:36

Traders could be prepping to buy as USDT activity hits 6-month high - Onchain activity for Tether has hit a sixth-month high, possibly indicating traders are gearing up to jump back into the market, according to analysts.  Data shared by the blockchain data platform Santiment in a March 12 X post shows Tether’s (USDT) onchain activity has been on the rise, peaking with over 143,000 wallets making transfers on March 11, the highest in six months.“When USDT & other stablecoin activity spikes during price drops, traders are preparing to buy. Added buy pressure aids in crypto prices recovering,” Santiment said.Onchain activity for Tethers USDT has spiked, reaching a sixth-month high. Source: SantimentIt comes as Bitcoin (BTC) dropped to a four-month low of $76,700 on March 11, as the wider crypto market shed even more of the gains made post-US election amid macroeconomic uncertainty and an escalating tariff war.Speaking to Cointelegraph, Vincent Liu, chief investment officer at Kronos Research, said traders often accumulate Tether during dips to position themselves for buying opportunities, adding buy pressure that can help crypto prices recover.He speculates the uptick in USDT wallet activity likely reflects traders capitalizing on recent market volatility.“Possible causes include broader economic uncertainties, crypto-specific events like regulatory developments or post-election sentiment shifts, and Tether’s role as a stable haven, making it an ideal holding for investors preparing to deploy capital strategically,” Liu said.Related: Bitcoin, crypto ‘dip buy hype’ is now at its highest level in 7 monthsLiu says the surge in USDT activity is a bullish indicator, suggesting significant buying power on the sidelines, but the crypto market’s recovery will likely depend on factors like macroeconomic conditions, regulatory clarity, and investor confidence.“However, with the inflation rate easing to 2.8% in February, lower than expected in recent CPI data, this could reduce pressure on crypto prices and signal a more favorable environment,” he said.“Additionally, the upcoming Federal Open Market Committee (FOMC) on March 18th may provide further indications on interest rates and monetary policy, potentially influencing market development and recovery,” Liu added. A key Bitcoin and crypto sentiment tracker, the Crypto Fear & Greed Index, hit its lowest score in over two years on Feb. 26 as it slipped deeper into “Extreme Fear,” reaching a score of 10.Crypto sentiment has staged a recovery since, but the index has still registered a score of 45 on March 13, still in fear territory.Tether CEO Paolo Ardoino touring the US Meanwhile, Tether CEO Paolo Ardoino is currently on a tour of the US as lawmakers move to regulate the sector. During a March 12 speech at the Cantor Fitzgerald Global Technology Conference, he said that as it stands, around 37% of USDT users are using it as a savings account to store value.“They don’t have bank accounts. The only thing that they have in their life is usually cash,” Ardoino said.“Now they finally can hold the most used and most important stable currency in the world, that is the US dollar, but they keep it in their smartphones as their savings account.”CEO of @Tether_to, @paoloardoino, speaks at Cantors Global Tech Conference. #CantorTechhttps://t.co/2z8d46WDMG— Cantor (@Official_Cantor) March 12, 2025At the same time, Ardoino said, Tether is acting as one of the “last strongholds for the US dollar” amid growing concerns that the US dollar could lose dominance as the world’s reserve currency and a go-to for international transactions and commodity trades.The stablecoin issuer has also been working to curb bad actors in the space, collaborating on more than 170 law enforcement operations and freezing $2.5 billion in illicit funds, according to Ardoino.Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why

FOMO: 85%