- Polygon and Layer-2 picking up momentum
- Mark Cuban invests in Polygon
- Ethereum Gas fees drop from $69
- BTC/USD bulls targeting $60k
Bitcoin Rebounds, BTC/USD Buyers Target $60k
The Bitcoin price is creeping back above $40k, soaking talk from bears and reinvigorating bulls who are now targeting $50k and better in the coming sessions.
Pound-to-pound, the correct of last week traced back to mid-April 2021 wasn’t as deep as previous draw-downs.
Bitcoin price tumbled to $29k, wiping over 55 percent of the past eight months’ gains.
— PlanB (@100trillionUSD) May 26, 2021
Elon Musk and his comments on the debunked misinformation of energy efficiency seem to be the primary reason. The fact is, Bitcoin depends on nodes drawing their energy from renewable sources.
Accordingly, critics of Elon maintain that he has no right to spearhead the charge of BTC becoming green—of which it already is.
— Bloomberg TV (@BloombergTV) May 26, 2021
Ethereum’s Future is Bright
Prospects of Ethereum look brighter than Bitcoin’s.
At least, this is the assessment of two global banks—Goldman Sachs and JP Morgan.
Before the crypto surge from mid-2020, they were holders of the caution card before shifting stance and becoming pro-crypto.
Ethereum, meanwhile, is slowly pulling itself out of the fee bog. After Vitalik’s intervention, Gas fees fell from over $69 to around $11.
At the same time, there are concerted efforts to double down on Layer-2 and sidechain solutions. Soon, several Layer-2 options, like Arbitrum and Optimism, will launch on mainnet, on-boarding intensive dApps, helping to relieve the base layer.
Bullish on Ethereum scalability solutions.
The game is about to change forever.
— Anthony Sassano Ξ 🦇🔊 (@sassal0x) May 26, 2021
On the other hand, the success of Polygon—and investment from billionaire Mark Cuban—highlights the potent of these efforts to reduce Gas fees.
really excited for arbitrum launch.
between polygon shipping a hyper low cost sidechain
and arbitrum shipping a very low cost optimistic rollup
ethereum is scaling right before our eyes.
— 𝚂𝚌𝚘𝚝𝚝 𝙻Ξ𝚠𝚒𝚜 🌾 (@scott_lew_is) May 26, 2021
This, coupled with EIP-1559 and the scarcity from Eth2 coin lock, makes ETH scarce but would be a deflationary asset with the activation of London in July.
Scarcity, given the level of demand, only means one way for ETH: The moon.
Polygon (MATIC) Price Analysis
MATIC price gains are parabolic.
According to trackers, MATIC is up 95X year-to-date.
On the last day alone, the coin added 29 percent, resoundingly reversing losses of last week.
Overly, the path of least resistance is northwards.
Note that the reversal of the week ending May 23 was with high trading volumes, pointing to demand and rejection of lower lows. Furthermore, MATIC prices are banding along the upper BB, meaning the underlying demand is high, a net positive for bulls.
As long as Ethereum intensifies efforts on Layer-2 to drive Gas low, MATIC prices would benefit, driving prices even higher.
Technically for aggressive traders, every low above $1 could be a loading opportunity with targets at $4.2 and $7—the 1 and 2.618 Fibonacci extension levels of the November 2020 to April 2021 trade range.
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.