Ethereum’s price rallies lost their momentum in this past week. From a peak of $3387 reached on 13 January, to its current level at $3288 due to concerns over the Market Structure Bill.
The following is a summary of the information that you will find on this page.
- The price of ETH has dropped in recent days due to a decline in demand for cryptocurrency.
- Ethereum’s fundamentals are encouraging, and include a higher level of network activity.
- On the daily chart, the token formed a wedge pattern.
EthereumETH( token) has fallen by 33 percent from the highest point in August, last year. Its performance is similar to that of the entire crypto market.
The token’s value has declined despite the fact that its fundamentals are strong. SoSoValue’s data shows, for instance, that spot Ethereum-based ETFs received over $584 inflows in this year. This brings the net cumulative inflows of over $12.9 Billion. The total assets for all these funds exceed $20 billion. BlackRock ETHA has over $11.7billion in assets.
Ethereum’s network also continues to grow, as the number of users and transactions continue their upward trend. The number of transactions increased 30% in the past month to more than 58 millions, and active addresses increased 64% from 13.1 to 13.1.
The stablecoins transactions on Ethereum have been soaring in this year. In the past 30 days, the volume of the transactions has risen to $977 Billion and the token supply to $170 Billion. Stablecoin transactions on the network have risen to 50.4 millions.
Further data indicates that Ethereum investors have moved to staking pools where they can earn 2.85% annually. Data show that the market for staking has increased by over $118 Billion, an increase of $1 billion within the past 30 days. BitMine is continuing to stake their huge Ethereum hoard.
Ethereum Price Technical AnalysisÂ
Charts on the daily timeframe show that Ethereum’s price has fallen from the August 2018 high of $4946 to its current level $3,290. The price has not moved above the Exponential Moving average of 200 days, which is a sign that bulls have lost momentum.
A rising wedge is formed by the token, and it’s characterized as two converging ascending trendlines. One of the commonest bearish patterns is a wedge.
There is also a pennant that looks like a bear. bearish divergence patterns. The coin is likely to have a bearish breakout and could potentially reach the support level of $2,623, which was its lowest point on 21 November. The target price is around 20% lower than the current value.
A move above $3,500, the major resistance level, will negate the bullish view and indicate further upside.
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Source: crypto.news
