Steemit Crypto Academy Trading Competition Season 6 Week 1: Trading ETH

This is my post for Steemit Crypto Academy Trading Competition Season 6 Week 1. And I am joining the team TRADERS with Professor @kouba01 and Professor @fredquantum. This is my third trading post of this week’s Trading Competiotion, and for this round I chose Ether (ETH) the native token of Ethereum blockchain.

Note : I performed this task on Windows 10 PC, Google Chrome.

1.1. About ETH

1.1.1. A Brief Introduction of the Token

I don't think there is a fan of blockchain technology and cryptocurrency who doesn't know Ether (ETH). Ether (ETH) is a famous token. It is the native token of the famous Ethereum blockchain. The Ethereum blockchain is one of the “classic” blockchains. This is the second generation of blockchain that comes after its predecessor and pioneer of blockchain technology, Bitcoin.

ETH has main characteristics similar to other similar tokens, it is useful as a digital payment medium to fund various transactions on the blockchain. In addition, it is also a tradeable digital asset.

At time of writing, according to coingecko webpage, ETH is traded at USD 2,639.13 per token, and this token ranks second in crypto assets based on market capitalization.

^{The ETH price at time of writing, it shows a 3.6% decrease in the last 24 hours. Source = https://www.coingecko.com/en/coins/ethereum.}

^{ETH is ranked #2 cryptocurrency based on market Capitalization. Source = https://www.coingecko.com/.}

1.1.2. ETH Statistics

I have put the ETH data which was gained from https://www.coingecko.com/en/coins/ethereum, into a table as seen below.

Aspect	Value
Token Name and Ticker	Ethereum (ETH)
Market Capitalization	USD 315,948,892,600
Market Cap Dominance	17.65%
Market Cap Rank	#2
Circulating Supply	119,686,832 ETH
All Time High	USD 4,878.26 on Nov 10, 2021
All TimeLow	USD 0.432979 on Oct 20, 2015
Website	https://www.ethereum.org/
Explorers	Etherscan; Ethplorer; Blockchair;
	Tokenview; Moonscan

1.2. Where Can We Trade ETH

Ethereum is available for trading on various crypto exchanges including Binance, UPbit, Crypto.com Exchange, HitBTC, FTX, KuCOin, Huobi Global, and currency.com. There are various pairs, both crypto and fiat pairs.

The following screenshot shows a list of the 20 markets that have the highest ETH trading volume at the time of writing.

^{List of 20 markets that have the highest ETH trading volume at the time of writing. Source = https://www.coingecko.com/en/coins/ethereum#markets .}

The ETH/USDT pair on Binance was ranked first as the highest trading volume at USD 1,541,687,226 in the last 24 hours or 10.15% of all trading volume.

10 markets with the highest ETH trading volume at the time of writing are:

No.	Market	Pair	Volume
01	Binance	ETH/USDT	10.15%
02	Uniswap (v3)	USDC/ETH	5.37%
03	Crypto.com Exchange	ETH/USDT	4.46%
04	FMFW.io	ETH/USDT	3.87%
05	HitBTC	ETH/USDT	3.86%
06	Coinbase Exchange	ETH/USD	3.48%
07	Binance	ETH/BUSD	3.37%
08	FTX	ETH/USD	2.81%
09	Currency.com	ETH/USD	2.31%
10	OKX	ETH/USDT	2.18%

1.3. The Token Background (A Brief History)

The Ethereum blockchain originated from the thought of a person named Vitalik Buterin. This Russian-Canadian teenager at that time was 19 years old. He realized the potential of blockchain technology demonstrated by Bitcoin and thought that this technology could be used to democratize many things including businesses, currencies and organizations. Because in a blockchain system, no party controls everything, power is spread across users.

Buterin received funding of USD 100,000. from Thiel Fellowship to develop his idea, after he issued a whitepaper containing his idea about Ethereum. In addition, in its development, Ethereum funding was also assisted through crowdfunding. Some other developers assisted the crowdfunding process including Dr. Gavin Wood and Joseph Lubin who both later became co-founders of Ethereum. Wood and Lubin teamed up with Buterin and launched a fundraising campaign in July 2014. In this fundraising, they managed to raise US$18 million.

Finally, on July 30 2015 the Ethereum blockchain was officially launched with the first platform named Frontier. However, the token Ether (ETH) was introduced to the public one year earlier, namely through Initial Coin Offering (ICO) in July 2014.

1.4. The Blockchain 2.0 Pioneer

The Ethereum blockchain comes with various advantages and updates to the blockchain technology initiated by Bitcoin. Ethereum makes this technology even better, so it is known as the pioneer of blockchain 2.0 (second generation blockchain).

Two important innovations brought by the Ethereum blockchain are:

• Smart Contracts. The Smart Contract ensures that transactions will be executed if the agreed terms are met. This is a feature that enhances transaction security. A smart contract unchangeable. The contract can only be left or executed according to the existing provisions. If there are parties who do not fully meet the conditions that have been set, then the transaction will not occur.
• dApps. dApps are mobile applications in a decentralized manner, which means that no one party controls them. It relies on a blockchain technology that maintains its sustainability through several parties who are commonly called validators. So, there is no single party in power so it is difficult to manipulate and destroy. On top of the Ethereum blockchain, anyone can build their dApps.

I was interested in trading ETH after observing the market on February 21 and seeing that at that time ETH was in the green token group on UPbit. Immediately at that time I analyzed the ETH market with a combination of 2 EMAs and the Aroon indicator. I think at that point I saw a pretty strong positive signal. I believe it is a good time to enter the ETH market.

I can't predict how long the ETH price will creep up or at what price before the price reverses direction. But I will see developments by paying attention to the chart and from there determine the next attitude.

Here is a screenshot showing the ETH price chart. This screenshot was taken from https://id.upbit.com/exchange?code=CRIX.UPBIT.IDR-ETH on February 21 at 03:33 PM UTC.

^{The 2 EMAs and the Aroon Indicator on ETH/IDR market. Source: https://id.upbit.com/exchange?code=CRIX.UPBIT.IDR-ETH.}

In the screenshot above, it can be seen that I am still relying on a combination of 2 EMAs to analyze the price chart. I think the combination of two EMAs is the easiest way to understand, although I'm still at the level of testing my own ability to understand this combination of 2 EMAs better. The screenshot also shows that I combined 2 EMAs with Aroon Indicator. The settings for each tool are as follows:

• Shorter period EMA (blue colored line) was set to 15 period;
• Longer period EMA (orange line) was set to 50 period;
• Aroon Indicator was set to 25 day look-back period.

The picture shows a Golden Cross occurred on February 21 at 01:00 PM UTC. The picture also shows that a few hours earlier, on February 20 at 06:00 PM UTC, the Aroon Up line intersects the Aroon Down line from below. I think these two signals are strong enough to make me optimistic about the trade.

I still don't feel confident enough about the current state of cryptocurrency trading. So, I think I'll just hang on for one day and see developments on the price chart. It will be an intraday trade or a little longer if the positive signal persists for a bit longer.

I placed a limit order of IDR 350,000 (about USD24.14) on UPbit Indonesia.

^{Limit order buy was placed. Screenshot from UPbit Indonesia.
Confirming the buying. Screenshot from UPbit Indonesia.
The Limit Order buy was fulfilled gradually. Screenshot from UPbit Indonesia.}

At the time of its emergence, Ethereum brought exciting innovations to blockchain technology. With that, Ethereum opens up a lot of opportunities in the blockchain world, not just in decentralized trading.

In fact, Ethereum is considered to be an energy-consuming blockchain just like Bitcoin is, and besides that it is also slow, when compared to later generation blockchains which were more focused on providing a faster platform. Various new generation blockchains that have emerged with new innovations and are faster in handling transactions and capable of handling more transactions per unit time, are referred to as “Ethereum killers”.

However, interestingly, even after the fifth generation of blockchains appeared, ETH's position still hasn't shifted from cryptocurrency with market capitalization rank 2. Its might may be supported by a solid community and perhaps “fanatic”.

I personally tend not to choose ETH as one of my favorite cryptocurrencies. I store several types of cryptocurrencies, but not including ETH in them. I am more of a believer in progress, and therefore I have more faith in the tokens of the new generation of blockchains. Therefore, I dare not recommend ETH to others. Sorry, but this is purely personal opinion.

Thanks

Thanks Professor @kouba01 and Professor @fredquantum.

Pictures Sourcing

• The editorial picture was created by me.
• Unless otherwise stated, all another pictures were screenshoots and were edited with Photoshop CS 3.

Sources and Reading Suggestion

• https://ethereum.org/en/;
• https://www.investopedia.com/terms/e/ether-cryptocurrency.asp;
• https://pintu.co.id/en/academy/post/what-is-ethereum
• https://pintu.co.id/en/market/eth;
• https://www.investopedia.com/terms/e/ethereum.asp;
• https://www.coingecko.com/;
• https://www.coingecko.com/en/coins/ethereum;
• https://www.investopedia.com/articles/investing/031416/bitcoin-vs-ethereum-driven-different-purposes.asp;
• https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/;
• https://aws.amazon.com/blockchain/what-is-ethereum/;
• https://www.thestreet.com/investing/what-is-ethereum-14797423;

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My Introductory Post | Artikel Perkenalan Saya.

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^{Picture created by @aneukpineung78}

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