Dash Pauses Rally, Ether Range-Bound

Hello, readers. From this week on, we will include two new cryptocurrencies in our weekly updates: Dash and Ethereum. This will be done on a rotation basis. We’ll cover DSH and ETH today, while next week we’ll be back with the usual currencies Namecoin and Peercoin.

Dash Pauses Rally

Dash, formerly known as Darkcoin, is one of the few anonymizing coins that has lately sprung up. It aims to solve what some say Bitcoin’s main problem is: complete transparency and traceability of all transactions. In its current implementation, it adds privacy by combining identical inputs from multiple users into a single transaction with several outputs. Due to the identical inputs, transactions (usually) cannot be directly traced, somewhat obfuscating the flow of funds. More on Dash basics here.

DSHBTCDaily-aug25

Dash has a market cap of around $88 million and is currently at the 7th position. Let’s take a look at some charts. On the picture above we can see Dash versus Bitcoin (DSH/BTC). Notice how the altcoin is in a ‘holding pattern’ after the rally in the first half of August. After we peaked at 0.031 the prices fell back down to 0.0201 before stabilizing in the current 0.022-0.023 area.

By looking at other charts it appears that the spike high of 0.031 on FXOpen was due to low liquidity. On Poloniex, which currently has the highest daily volume for DSH/BTC, the highest high was 0.0266 in August while the all-time high was 0.028 back in 2014. Due to the proximity of these levels, waiting a break of 0.028 seems prudent. A break above this all-time high would spark a new upward trend for Dash. On the long-term charts (weekly and monthly) the trend is bullish as well.

Ether Trades Range-bound

Ethereum is currently number two cryptocurrency at $930 million, according to CoinMarketCap. It has been trading range-bound this month and most of the summer as well. We are now quoted at 0.0194 ETH for one Bitcoin.

ETHBTCDaily-aug24

On the chart above we can see how the range keeps getting narrower. This is usually a prelude to a breakout so let’s take a look at some levels. On the upside we’re looking at 0.02122 as a potential short-term trend starter. We have a lot of resistance higher up though, starting at 0.2285 and 0.02610 and continuing with the round figures at 0.028 and 0.03.

On the other end the bears may be looking at 0.018. A breakdown below this level could start a new short-term trend lower. Support levels below here can be found at the$0.015 round figure followed by 0.0139, 0.0123 and another round level at 0.01. A decisive break of this figure could intensify the losses.

Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

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