Ethereum’s price is still in the same range as last month due to its deteriorating ecosystem and growing competition.
EthereumETHOn January 22, the price of, the second largest cryptocurrency, had fallen to $3,310, or roughly 20% from its highs in November. Bitcoin’s (BTC), Solana (SOLRippleXRPRecently, they have tested their highest levels.
Ethereum also continues to experience a decline in market share. As an example, Jito has overtaken Ethereum Ethereum has generated only $112 million in fees this year.
Ethereum’s decentralized exchange The volume of Solana protocols has fallen significantly. Solana’s protocols, such as Raydium or Orca, handled over $123 billion In volume, Bitcoin has grown by more than ten times over the last seven days compared to Ethereum. The popularity of Official Trump and Melania Coins was the main reason for this surge.
Ethereum’s price has been affected by ongoing token sales and increasing exchange balances. CoinGlass reports that these exchange balances have increased from 15,3 million ETH on January 1 to 15.8 millions ETH.
There are still positive indicators that point to an Ethereum price recovery. Inflows into spot Ethereum ETFs are consistent, indicating some Wall Street demand. The cumulative amount of inflows over the last 5 days has reached $2.74 billion.
Data also shows that Ethereum’s leverage has risen in the last few months. It is now at 0.6, compared with 0.24 back in September 2023. Interesting, Ethereum’s leverage ratio is now higher than its price. This could mean that Ethereum will continue to rise.
Ethereum’s open interest in futures has also remained high over the past few weeks. On January 22, the open interest for Ethereum futures was $30.3 billion. That’s a huge increase compared to December’s $20 billion low.
Ethereum technical analysis
Ethereum’s daily chart shows that it encountered a strong resistance level of $4,000 at which the price was unable to rise. This is the upper borderline for a cup pattern. Currently, the cryptocurrency forms the handle portion of this pattern.
The handle is similar to a falling wedge. It’s defined by two trendlines that are descending and convergent. The patterns of falling wedges are usually bullish, and they indicate possible gains. ETH also remained higher than the 200-day exponential moving average.
Ethereum may experience a significant bullish break, and the next potential target could be $4,000, which represents a 21% rise from its present level.
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Source: crypto.news
