Ethereum’s journey has been long, starting with its split and ending up in a market place within just a few years. With their new validation protocol, they now focus on reducing electricity consumption and other issues raised by analysts. It supports multiple blockchain networks via layers-2 services as well as validations.
These facts are all combined to make ETH more popular than Bitcoin.
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Surprisingly Ethereum’s price has dropped since November 2021. This is despite Ethereum having reached a new record. The reason for the falling price is speculation over a new protocol. The protocol’s exact date has yet to be announced, and people have been selling their ETH in anticipation.
With its current market capitalization, ETH is 10 times larger than Solana and close to 45% of BTC’s value. Technical insights indicate that the market has strong supply-demand zones because consumers want to get things cheaper. FOMO (fear and obsession with missing out) is a key driver behind the cryptocurrency price rises.
Analysis on Ethereum Price
ETH’s price trend has repeatedly beaten expectations, but because it is currently trading below the 200-day moving average (DMA) curve, there is a negative sentiment in the short term.
With the crypto market still uncertain, buyers have made various attempts to breach Ethereum’s $3,600 level. The 200-day moving mean is gradually falling. If Ethereum exceeds the average, it could lead to a substantial price move towards new highs.
ETH is highly in demand at $2400 levels and there are good chances that it will rise even further in the future. It is currently at $3,200-3,600. This will prevent further growth.
The candlestick pattern in which ETH 200 DMA has failed to cross resistance since April 2022 has resulted in a profit booking, free fall and stability as well as more profitability bookings. The crypto market suffered a collapse of 6% on April 26th, 2022. The crypto market’s collapse is likely due to worries about Elon Musk’s influence.
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April saw a 22% decrease in the price for ETH. The RSI indicator shows a 66% decrease in purchasing strength. Transaction volumes over the last six month have not changed. Although there has been some spikes in transaction volumes, they are still at the same level. ETH will soon surpass some landmark prices. However, before investing in Ethereum, traders should read more about the ETH’s future price momentum and explore market sentiments.
The price trend in ETH seems to have been positive for the majority of this year. However, declining demand is evident. This decline can’t be seen in historical data. It is clear that Ethereum will rise if prices exceed $4,000, while Ethereum’s value below $2,500 would cause it to fall further.
Featured image taken from Pixabay. Chart from Tradingview.com