Ethereum has been quite on its way, from splitting to establishing its presence in the market within a few years. And now, they’re looking at electricity savings and other concerns that analysts have raised with their latest verification protocol. The cryptocurrency supports many blockchain networks through layer 2 services and validations.
With all these facts put together, ETH could dislodge Bitcoin as the largest cryptocurrency network.
Surprisingly, after all these achievements, one would wonder why Ethereum has been dropping since November 2021 after hitting a new high. The reason is that the price is based on speculation about a protocol that will be launched in the future. Unfortunately, the actual date of the protocol has not yet been announced, so people are selling their ETH in anticipation of the lower price.
With its current market capitalization, ETH is 10 times larger than Solana and close to 45% of the value of BTC. According to technical insights, there are strong supply and demand areas in the market because people want to buy things at a lower price. FOMO (fear of missing out) has been the main driving force behind cryptocurrency prices.
Ethereum price analysis
ETH price trend has repeatedly exceeded expectations, but since it is currently trading below the 200-day moving average (DMA) curve, there is a negative sentiment in the short term.
As the cryptocurrency market remains uncertain, buyers have made various attempts to breach the $3,600 level of Ethereum. But the 200-day moving average is slowly declining. So if Ethereum crosses this average, there could be a significant price movement to new highs.
ETH is in high demand at $2,400 levels, and there is a good chance that demand will increase even more in the coming days. The only resistance preventing it from rising further is $3,200 to $3,600, which prevents further growth.
Since April 2022, Japanese candlestick pattern when ETH 200 DMA failed to break above resistance, profit booked in free fall, stability, more profit bookings. On April 26, 2022, the cryptocurrency market experienced a 6% crash. This appears to be due to concerns about Elon Musk’s impact on the cryptocurrency market.
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ETH price fell by 22% in April. The buying power indicated by the RSI decreased by 66%. Over the past six months, transaction volumes have remained unchanged, with spikes occurring but averaging at similar levels. ETH has a few notable prices that should be crossed in the short term. However, before investing in Ethereum, traders should read more about the future price momentum of ETH and explore the market sentiment.
ETH price trend has been strong for most of this year, but the drop in demand appears to be weakening. Unfortunately, this decline cannot be determined by looking at its historical data. So one must estimate that prices above $4000 will cause Ethereum to rise while values below $2500 will drag it down.
Featured image from Pixabay, chart from Tradingview.com