Ethereum Seems to Break Out from Bitcoin Trading Pair
It looks like Ethereum (ETH) has finally broken loose against its Bitcoin (BTC) trading pair. This is with a bullish continuation seeming likely during the arriving weeks.
The second-largest cryptocurrency boosted by nearly 5% against Bitcoin in a trading session on Monday. Also, it will retest the psychological level of resistance at $250.
If the crypto successfully breaks above $250, it would be a remarkable demonstration of strength in the short and long term. This is because it was a point of rejection ahead of the sell-off in March as well as throughout June.
Still, it is against Bitcoin that Ethereum asserts the most bullish bias. Note that it is trading over the symmetrical triangle that has been forming since February’s high of 0.029 BTC.
Moreover, a measured move for the breakout would take ETH to at least 0.0308 BTC. And this would be the highest point its traded at in over 12 months.
Bitcoin must stay in its relatively stable range between $9,000 and $10,000. If that happens, Ethereum will possibly move back towards the crucial level of $300. This is a level that has been an important support and resistance dating back to 2017.
Furthermore, it is also worth remembering that while ETH currently presents one of the most bullish charts, the potential impact of a COVID-19 second wave could have a dramatic effect on the crypto market.
Aside from Ethereum, the economic impact of COVID-19 in March caused one of the most extreme sell-offs ever for digital assets. With that, even if there is a specific case to be bullish, traders must proceed with caution. There is expected volatility returning in the coming weeks.
The Offer of Bitmain Co-Founder Zhan
Meanwhile, Bitmain’s power continues on as one of the co-founders of the crypto mining giant and its largest shareholder, Micree Ketuan Zhan, has made an offer to buy shares controlled by another co-founder Jihan Wu and others for $4 billion.
Based on a letter from Chinese media outlet Jinse on June 21, Zhan claims he currently holds 36% of the shared for Bitmain’s Cayman Islands parent company, which owns Bitmain Hong Kong, and manages Bitmain’s offices in Beijing. The currently owned shares gave him 59.6% of the voting power.
In addition to that, the letter showed that Zhan is willing to purchase out Wu and the shares from the employee option pool, outside investors, and three unanimous individuals for $4 billion.
Battle for Control
Back in October 2019, the Bitmain co-founder was already its biggest shareholder. This happened when Wu allegedly forced him out of the company. The reason for this was an apparent grab for control – an action Zhan refers to as an illegal power seizure.
Following the ousting, the mining giant went on the offensive. It revealed that he had no right to act as the Bitmain legal representative or issue notices and instructions to the employees. Also, there were reports of legal action against Zhan.
Then, in several ways, Zhan struck back. He launched two lawsuits against Bitmain’s different entities to regain the position lost. The letter also accuses Wu of spreading rumors, sending a group to get a copy of his business license, and hiding company assets.
Now, Zhan has asked Wu to go back to the negotiating table and rely on the rule of law instead of resorting to fighting battles in the media.
