$160 Million Lost: Can this parity shake up Ethereum? According to Coindesk report, a Startup Lost $160 Million But Still Wants to Shake Up Ethereum. When life gives you lemons to the tune of nearly $160 million, it’s not so easy to make lemonade.
But that’s just what ethereum startup Parity Technologies is seeking to do after a rough 2017, a year in which it suffered one of the most high-profile breaches in the history of blockchain. Far from a sinister hack, though, it’s had to face that its fortunes effectively changed when a novice developer “accidentally” deleted a file, “freezing” the funds so no one could access them.
Worse still, attempts at getting the money back don’t exactly look promising.
Entering 2018, that could have an impact beyond just a single startup. Far from a conventional business, Parity supplies support for one of the two most widely used clients on ethereum, providing software roughly a quarter of the network uses to operate.
And like other blockchain conglomerates (think the ever-expanding Brooklyn startup ConsenSys), Parity has diverse interests. Also affected by the incident was the Web3 Foundation, the non-profit that oversees the development of the Polkadot blockchain, and it is also led by former ethereum CTO and Parity founder Gavin Wood.
The much-heralded blockchain for blockchains raised roughly $150 million in an ICO last year, and as reported by CoinDesk, funds lost in the Parity freeze included ICO earnings.
As such, Ashley Tyson, a spokesperson for the Web3 Foundation, acknowledged that the loss to its operations has been felt. Plans to deploy bounties designed to fix code weaknesses and grant programs to spur development, she said, have been scrapped.
Ethereum price analysis today ETH / USD: Ethereum is the big Crypto winner in January 2018
Ethereum continues to be strong as it is still trading above the uptrend line and above both moving averages. We are holding 50 percent of our original purchase done at $1,000 levels with the stops at breakeven.
According to FXStreet records, Ethereum has been the big winner of January, as we can see in the chart below. ETH mainly picked up steam during the second week of the past month, when it diverged paths from the rest of the Crypto board. Since then, Ethereum has been steadily keeping its edge against the other Cryptocurrencies. That said, besides this trend divergence, much more are the similarities, as we can spot very similar Momentum indicators across the Crypto board for the last couple of weeks, with every digital currency reacting to the “external” events in a similar manner.
We are now focusing in a possible turning point, where the trailing Cryptocurrencies might encounter some resistance, with indicators proposing upcoming price surges. Meanwhile, Ethereum is in the opposite position, trading just above a main trendline and showing some exhaustion signs in the indicators.
Ethereum: downside potential is more likely, but everything is possible
Ethereum is trading in the final steps of a triangle. This situation has been developing for several days and it is still difficult to bet on a certain scenario.
MACD is very flat, supported at the equilibrium level. The indicator is not giving clear information right now, and it might go to any direction.
Directional Movement Index is at the equilibrium point, with buyers and sellers close to being at the same level, with sellers coming from upper levels. That kind of scenario doesn’t bring much statistical value either, so we should wait until it develops further to define the next steps to take.
We remain bullish on the ETH/USD pair because it continues to form a higher low on the charts. This shows that the bulls are eager to buy on dips, so they don’t let prices fall.
But the up move is facing profit booking at higher levels. As a result, the 20-day EMA has turned flat, which points to a consolidation in the short-term. The 50-day SMA continues to rise indicating the uptrend continuation.
Our bullish view will be invalidated if the cryptocurrency plunges below the uptrend line and the 50-day SMA.
Ethereum’s ether token could revisit record highs very soon
Ethereum’s ether token could revisit record highs very soon, courtesy of last week’s bullish price action, the price charts suggest.
The cryptocurrency, which was notably given a higher rating than bitcoin and Ripple’s XRP last week by Florida-based Weiss Ratings, is up 18 percent week-on-week, says data source OnChainFX. As of writing, ether (ETH) is changing hands at $1,211.
Having bottomed out at $905 last Tuesday, the price of ETH rose to a 12-day high of $1,224 on Coinbase’s GDAX exchange – a rebound that left a higher low (bullish set up) on the price chart.
Furthermore, previous day’s 12 percent rise (UTC) was backed by a 78 percent jump in trading volumes, shows CoinMarketCap. A high-volume rally indicates strong hands are at play.
Notably, prices on South Korean exchanges are again being used in the calculation of global average by CoinMarketCap, having been removed in early January with no announcement and causing a drop in global prices.
Thus, ETH might have received a slight boost, with prices in South Korea still carrying a premium of approximately $70 over those on western exchanges. However, the Korean price premium has dropped sharply from the heady heights seen at the turn of the year.
So, the price rise appears to be more or less legitimate. Looking at the charts, ETH witnessed a bull reversal yesterday and could soon revisit record highs above $1,400. Ethereum the big Crypto winner in January