Ethereum’s main network stopped completing transactions briefly but recovered after 25 minutes. An unidentified problem in Ethereum’s Beacon Chain caused transactions to stop for nearly half an hour on May 11.

Around 20:15 on Thursday, May 11, several Ethereum core developers announced that the Beacon Chain was having trouble committing transactions. New blocks could be proposed, but an unknown issue was preventing them from being finalized.

The Beacon Chain stopped finalizing about thirty minutes ago. I don’t know why yet, but in general the chain is designed to be resilient to this, transactions will continue as usual and finalization will kick in when the problem is resolved.

A similar issue occurred on March 15, when low validator participation rates caused a delay in Goerli’s testnet version of Ethereum’s “Shapella” update, which was successfully executed on April 12.

The Beacon Chain is Ethereum’s original Proof-of-Stake blockchain, first launched in 2020. On September 15, 2022, Ethereum’s pre-existing Proof-of-Work chain was “merged” with the Beacon Chain, finalizing the network’s transition to a Proof-of-Stake consensus mechanism that is faster and more environmentally friendly.

After 25 minutes, the mainnet began finalizing blocks once again, with Ethereum lead developer and Prysmatic Labs co-founder Preston Van Loon announcing that “finality has been restored.”

Finality has been restored. We don’t yet know the root cause, but something happened to make several customer implementations work very hard to keep up with the blockchain.

According to data from Beaconcha.in blockchain analytics provider, Ethereum epochs 200,552 to 200,554 witnessed a sharp and sudden drop in the number of attestations.

For context, an epoch is a period of 32 “slots” in which validators propose and confirm blocks. An epoch typically lasts about 6 minutes and 24 seconds.

Does the PEPE memecoin have anything to do with it?

It has been noted that the high congestion spikes experienced in the previous days were a contributing factor. These episodes of congestion resulted in a significant increase in transaction fees and longer wait times for users.

Some reports have mentioned the PEPE memecoin as a possible influencing factor in this context. This cryptocurrency reached an all-time high on May 5, with a revaluation of more than 1,000% compared to its initial value on DEX.

Despite the setbacks experienced on the Ethereum network, there is one positive aspect to highlight. Validators on the network have benefited from increased commission margins. This has resulted in higher earnings from escrow funds. This increase in margins has led to higher asset burn associated with fees.

As for Ethereum’s price, at Friday’s open it was trading at around $1,794. In addition, it is noted that the 70-period moving average is below the last candle.

Despite the challenges faced, the gains for validators and the constant fluctuation in Ethereum’s price reflect the dynamics and volatility inherent in the world of cryptocurrencies. Investors and network participants continue to closely monitor these developments and adjust their strategies accordingly.

The cause of the problem remains unclear, but Ethereum developers have stated that it is being investigated to prevent a recurrence.

By Marina Meza

Bitcoin cash price is dipping below the $120 zone against the US dollar, similar to Bitcoin. BCH/USD could extend losses if there is a close below $110.

Bitcoin cash price started a fresh dip below the $120 zone against the US Dollar. The price is now trading below the $120 zone, and the 55 simple moving average (4 hours).

A short-term ascending channel is forming with support at $112.80 on the BCH/USD pair 4-hour chart, according to Coinbase. The pair could continue to move lower if it sustains below the $118 resistance zone.

Bitcoin Cash Price Analysis

Bitcoin cash price struggled to gain pace for a move above the $124 resistance level. BCH formed a high near $123.94 and started a new decline.

There was a clear move below the $122.00 and $120.00 support levels. The pair even dipped below the $115 support. It tested the $110 level. A low is formed near $110.16 and the price is now consolidating losses. It is now trading near the 23.6% Fib retracement level of the recent decline from the $123.94 high to $110.16 low.

Furthermore, it is trading below the $120 area and the 55 SMA (4 hours). Immediate resistance is near the $117.00 level and the 55 simple moving average (4 hours).

The 50% Fibonacci retracement level of the recent drop from the $123.94 high to the $110.16 low is also near $117. The next key resistance is nearly $120. More gains above $117 and $120 could set the pace for a move toward the $125 level.

If there is a move above the $125 resistance, the price could rally toward the $132 zone. Otherwise, the price could continue below $110. Immediate support on the downside is near the $108 zone. The next major support is near the $100 level, below which the bears could target $92.

Bitcoin cash price is now trading below the $118 zone and the 55 simple moving average (4 hours). Overall, the price could continue to fall if it sustains below the $118 resistance zone.

Technical Indicators

The 4-hour MACD for BCH/USD is picking up pace in the bearish zone, while the 4-hour RSI (Relative Strength Index) is below the 50 level.

The key support levels are $110 and $108, while the key resistance levels are $118 and $120.

Bitcoin Predictions

It is important to note that this month, the price of Bitcoin is locked in a price range that fluctuates and moves between $27,000 to $31,000.

Jacobo Maximiliano, a Bitget analyst, shared an analysis with Cointelegraph en Español, where he historically shows what happened in May each year, and considers, through technical analysis, where the market could go.

Of the 11 years that go from 2013 to 2023, May ended in red in 6 years. On the other hand, in 5 of those 11 years it ended in green, that is, in positive returns. However, the last 3 years have been very high for BTC in terms of performance.

Jacob said some reasons could be that, in May, the summer vacation period in many countries starts, which could lead investors to reduce their activity in financial markets. Additionally, this month has been associated with historical events such as the 2008 financial crisis, as well as the 2010 US stock market crash.

By Audy Castaneda

The global dominance of the USD is on the decline following the economic turmoil in the United States. The economically aligned nations known as the BRICS will consider whether a new global currency would allow them to decouple from the US dollar. Wealthy investors have created billions of dollars worth of short positions in US stocks.

US dollar (USD) dominance continues to decline as wealthy investors and country leaders take steps to reduce their exposure to the currency. What are the potential consequences of such trends?

As the global economy struggles to recover from the COVID-19 pandemic, investors and wealthy nations are betting billions against US stocks amid mounting recession fears. The move is a sign of growing uncertainty about the future of the US economy, which has been hit hard by the pandemic.

One reason for this trend is the view that the US stock market is overvalued and needs to be corrected. With stock prices at all-time highs, many investors and nations fear that a bubble is about to burst. As a result, they seek to hedge their bets and protect their assets by shorting US stocks. Instead, use other safe havens to increase profitability.

Bets Against US Equities

Short selling is a common investment strategy that involves betting against a certain asset. When investors short stocks, they borrow shares from someone who owns them and sell them at the current market price. They then hope to buy the shares back at a lower price in the future, return them to the original owner, and pocket the difference as a profit.

Short-term interest in the US stock market has increased in just a few years. This indicates that many investors and nations are betting against the US stock market. In fact, short sellers gained a lot last year when the broader market declined. Count $300 billion in market gains on the average short interest of $973 billion.

Meanwhile, contagion from the broader banking sector also played a role, as investors reduced exposure. According to S3 Partner’s March 2023 data, short-selling bank stocks returned a gain of 17.20% with an average short interest of $82.40 billion.

Countries Reducing USD Dominance

One of the nations that has been betting against US actions is China, according to data from the US Treasury Department, reducing its Treasury bond holdings and buying more gold. This indicates that China wants to diversify its holdings and reduce its exposure to US assets.

Another nation that has been betting against US stocks is Japan. In 2020, the Japanese Government’s Pension Investment Fund, the world’s largest pension fund, reduced its holding of US stocks from 25% to 21%, whose purpose was to reduce the risk of the fund and thus increase its returns.

Other countries, specifically in the Middle East, are leading the charge in 2023 to make it easier to trade without interference from the US dollar. In addition, five big emerging economies, Brazil, Russia, India, China, and South Africa, collectively known as the BRICS, have taken such steps.

The growing trend of betting against US stocks by some countries, as well as wealthy investors such as Carl Icahn, is a sign of growing concerns about the future of the US economy. While the economy has shown signs of improvement in recent months, many challenges lie ahead.

Overall, the growing tendency to bet against US stocks is a sign of growing uncertainty about the future of the US economy.

By Audy Castaneda

Ethereum staking rewards increase in the first week of May thanks to interest in memecoins, the new trend.

After The Merge update, Ethereum staking has become the most important activity on the network. To guarantee its security and operability, more validators need to be added. However, as more and more add up, the rewards are divided. Regarding this, the month of May has marked a relevant milestone, Ethereum Staking rewards increase in the first week of May.

In just one week, validators on the network raked in $46 million in bounties, up 40% from the previous week. The rewards for the first week of May reached almost 25,000 ETH compared to 18,339 ETH for the last week of April.

The recent trading craze for a new memecoin called Pepe (PEPE) is the reason for the increased rewards for validators. As gas rates rise, end users are paying more than $30 per transaction, which results in increased fee revenue for validators for transaction processing and regular validator rewards.

Ethereum Staking Rewards Rise, Validators Take $46 Million

At least one Bitcoin maximalist will have a headache after reading that the rise in rewards is largely due to the memecoin rush. The increase in network transaction fees has risen sharply thanks to PEPE, the meme coin that is creating a trading craze.

A graph that collects the information from berachoncha.in and ETH.STORE shows the annualized average of the reward and its current level (6.72%). The total rewards of the network reached 8.6% of the transactions, noting that validators enjoy, according to the ETH Store, consensus rewards for proposing and attesting blocks, as well as rewards for processing transactions from the Ethereum network.

Beaconcha.in claims that the current staking rate means the expected annualized return for validators. To participate in the network’s consensus procedure, Ethereum validators must block a minimum of 32 ETH, valued at about $58,000.

The average commissions of the Ethereum network reached 100 gwei, the unit of measurement that marks the transaction cost. This figure marks the highest average cost since May 2022, showing that the increase was a matter of time when network transaction costs reached 16,000 ETH in one day.

The community was quick to complain about Ethereum’s scalability and high transaction fees. An average end user can expect to pay up to $30 per transaction at a time when the network may be congested.

As transactions increase, validators will enjoy more benefits, although this is not an endless cycle. Attracting more validators will leave existing ones with fewer rewards, as these are spread across the network.

The Staking Dilemma and Its Appeal

At times like the present, the entire industry stops questioning whether staking was the correct consensus mechanism for Ethereum. The heart of the matter turns to the need to become a validator. The appeal is increasing and of course, after the Shapella update, the interest in Ethereum has only increased.

With only 32 ETH, approximately $58,600 at the present time, any person or institution can become a validator, either on their own, or using centralized services like Lido, Kraken, or Binance.

However, many tend to think twice, seeing Ethereum staking rewards increase, it is an indication that, very soon, the profits will be divided among more people. This is now not a problem with such a congested network, but at times of low network traffic, validators start to get restless.

By Audy Castaneda