- Ethereum prices slump 8%
- Gas drops to early 2021 levels
- Meitu registers a $17 million “impairment loss” from their Bitcoin holding
- Will Argentina approve a Bitcoin and crypto supportive bill?
Argentinian Lawmaker Tables a Bill that will allow Businesses/Employers pay in Bitcoin
El Salvador made history when it made Bitcoin legal tender.
Momentum is now building up in Latin America and Argentina. If a proposal by lawmaker José Luis Ramón goes through, employers and businesses will, if requested by employees, pay in Bitcoin.
Juan is tapping on what everyone presently agrees on.
For instance, last year, amid money printing by central banks as part of controls to contain COVID-19, capital flew to Bitcoin and cryptocurrencies as a means to hedge against value erosion. Indeed, this has come to pass in the U.S., where the FED projects the economy to heat up.
In Argentina, where the local economy has, from time to time, bear the brunt of hyperinflation, workers can use Bitcoin to “strengthen their autonomy and preserve the purchasing power of their remuneration.”
Meitu profits from ETH Holdings, posting a net gain of $14.3 million
Meitu, the first public company to publicly declare their holding of Ethereum and Bitcoin, is posting mixed results.
Because of unfavorable market conditions in the last few weeks, Meitu is in red. It posted an impairment loss of $17 million from their BTC holding but profited from their ETH stash, gaining $14.3 million.
In total, Meitu purchased $100 million of BTC and ETH in March and April this year. Still, the software company, despite losses, is sticking to its cryptocurrency plan and has no plans of selling.
Gas Fees Fall to January 2021 Levels
Gas fees in Ethereum are down to January 2021 levels as per trackers.
The drop is due to various factors, including the increment of the Gas block limit to 15 million, the adoption of Layer-2 and EVM-compatible scaling platforms like Polygon, and the rise of arbitrage bots Flashbots, which took bidding off-chain.
Ethereum Price Analysis
At the time of writing, ETH prices are down eight percent on the last trading day, marking a reversal of last week’s gains. That’s not good news for those holding ETH wallet.
Technically, the path of resistance remains southwards. However, the close above the middle BB and ETH/USD trending above $2k is bullish, injecting hope for optimistic traders.
From the daily chart, there is a bear engulfing pattern, rewinding gains of this week. Since the middle BB is negatively slanting, every high may present a selling opportunity for bears aiming at $1.5k.
ETH bulls must rewind today’s losses and close above $2.45k or this week’s high, preferably with increasing trading volumes for a buy trend continuation. In that case, ETH traders could accumulate, targeting $2.9k—or better.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.