Why Did Tether Volume Hit It’s All-Time High?

In the previous year, China has a made a decision to ban every local fiat-on-ramps regarding the crypto exchanges and Chinese traders are successfully improving the market with the help of the USDT, which happens to be a dollar-pegged stable coin Tether. Usually, traders deal with banking restrictions with the assist of the stablecoins. CoinMarketCap has reported that the USDT hit an all-time high this August. It has successfully exceeded the global market cap of a massive $4 billion. In the reports, it is written that the USDT is used somewhere in between 40%-80% of basically every transaction, particularly on the popular exchanges such as Binance and Huobi. Currently, Binance offers loans which happen to be based on the collateral of Tether.

Tether – USDT – ₮

This asset is extremely popular with the so-called over-the-counter traders, but it is fair to say that the exchange volumes don’t really depict the whole current situation. Blockchain data from CoinMetrics has detected an all-time high this year on the 7th of August. There were over 78000 wallets for the Tether and over 21000 wallets for USDTe, which is based on Ethereum. USDT has spent a whopping amount of $261000 in fees to ETH mines in order to get permission to run this lower-level version of the stablecoin.

When you look at everything, the Tether brokers have established a fruitful niche in the year 2019, especially the ones who ensure flat liquidity. A Chinese investor said that the Tether has above-average liquidity in China. Also, two over-the-counter traders have said that the vast majority of their tractions happens to come from Chinese clients, who use Tether to move their personal assets far beyond their homeland’s capital controls, which are quite strict.

Experts say that this recent burst in USDT usage might be the fact that there’s a fair chance for a bull market return. The over-the-counter traders ensure the before-mentioned fiat-on-ramps to Tether. This has been known to be a gray market in China. The next step for the Chinese traders would be to use Tether in order to liquidate their portfolios on global exchanges such as Binance for example. This has really made an impact on the Bitcoin market because exchanges and traders often use the Bitcoin for fiat liquidity beyond the over-the-counter. Bitfinex and Kraken offer those BTC trading pairs. 

A Hong Kong trader has said that billions of dollars come out of the borders of China that are not related to capital controls. For instance, the FTX crypto market in Antigua that was established in April 2019 facilitates $50-$300 million on a daily basis. The CEO Sam Balkman-Fried told that the boost 10000 FTX users hail from China, and every last one of them is served from Hong Kong.

The asset’s solid stability this year, oscillating only a couple of cents this month despite the fact that the spike in demand seems quite incredible given the fact that this particular stablecoin isn’t really backed one-for-one by USD. Also, the sister company, Bitfinex, is in legal trouble from misuse of Tether to cover some substantial losses of the company.

Tether official page

Current Ethereum Price Status

Right now, the price of Ethereum is trading in a bearish zone compared to these two well-known currencies, one being the USD and the other Bitcoin. First, some relevant facts regarding the current status of the Ethereum price:

  • The price of Ethereum has suffered a downfall recently breaking the supports of $180 and $185 when compared to the U.S currency.
  • Right now, the price is close to the resistances at $172 and $175.
  • There is a slight possibility that a short-term upside correction can happen, but the more likely end-result would be that the outcomes will be capped at around $180.

ETH Price Analysis

Looking at the previous week, a major decline has happened in the most popular cryptocurrency, Bitcoin and Ethereum are just beneath $10000 and $180 respectfully when you compare it to the USD. Ethereum price has also hit a new low below the support of $175 and the 100 SMA, which stands for the simple moving average. Furthermore, a break happened beneath the support of $170, and also the ETH price has traded near the level of $163. For a couple of days, the price began a solid upside correction from the swing low of $163.

The price has successfully risen above the level of $170, adding the Fib retracement level of 23.6% of the most recent fall. The drop had happened from the high level of $195 to the low level of $163. Nevertheless, there are many obstacles close to the levels of $178 and $180. Additionally, a massive bearish trend line which formes close to the resistance of $180. That bearish trend line has almost come to the Fib retracement level of 50% of the most recent drop which had occurred from the high level of $195 to the swing low level of $163.

Just above the current trend line, the following significant resistance happens to be close to the level of $184 and the 100 simple moving average.  A whole new Fib retracement level of 61.8% of the most recent drop which happened form the quite high level of $195 to the low level of $163. The before-mentioned Fib retracement level of 61.8% is waiting close to the resistance zone of $182 to act as a type of resistance. So, the price really has to climb somewhere above $184, $182 and also $180 to go back to the positive zone as soon as possible.

But, the current disadvantage is that immediate support is very close to the level of $165. In a situation where the price of Ethereum doesn’t go above the support area of $165, there’s a big chance that there will be more downsides. In the before-mentioned bearish situation, the price of Ethereum could suffer a new low somewhere below the support level of $160.

At the moment, the ETH price happens to trade in the bear zone beneath the level of $180, but if somehow an upside correction occurs close to the level of $180, then the bears will surely defend the following upsides.