Ethereumย (ETH) has remained stagnant for an extended period of time, leaving the market with uncertainty and full of bearish sentiment. Nonetheless, the price is consolidating inside a tight range, and a breakout could eventuallyย hint at theย following moveโs direction.
Technical Analysis
By Shayan
The Daily Chart
The price faced resistance at the $2K level and followingย that dropped below a short-term upward trendline. It is now undergoing a pullback to test this same trendline.
Inย theย meantime, Ethereumย (ETH) is up against the 100-day moving average, which represents a strong levelย ofย support positioned at $1781. A wholeย lotย of boostย in selling pressure would be necessary toย beย ableย to push the price below this critical price point.
Presently, Ethereumย (ETH) is confined duringย a tight range, approximately betwixt the 100-day moving average at $1781 and the ascending trendline around $1890. A breakout from this range will likely determine the short-term outlook of Ethereum.
The 4-Hour Chart
Zooming in on the 4-hour chart, the dull price action becomes more evident, with small candles indicating a lack of clear direction. During the consolidation phase, Ethereumย (ETH) briefly touched the upper boundary of the descending wedge pattern but was rejected.
On the 4-hour timeframe, 3 important price zones come into play: the lower threshold of the multi- 30ย days ascending channel (indicated by purple lines), the wholeย lotย of level of $1.7K acting as support, along with the upper trendline of the wedge pattern (marked with yellow lines), serving as resistance.
Given theย present price action, it is challenging to anticipate Ethereumโs short-term outlook until a breakout occurs.
On-chain Analysis
The ongoing surge in the โvalid Ethereumย (ETH) balance in the deposit contractโ serves as a wholeย lotย of testament to the active engagement of validators in Ethereumย (ETH) 2.0. This remarkable transition unfolds with the fundamental assumption that the revolutionary โProof of Stakeโ consensus mechanism has already been successfully implemented.
The continuous commitment of validators to stake their Ethereumย (ETH) in the deposit contract carries profound implications for futureย ofย the Ethereumย (ETH). Beyond its immediate significance in facilitating the Ethereumย (ETH) 2.0 upgrade, this growing staking activity is perceived as an encouraging sign that bolsters optimism regarding the future price trajectory of Ethereum.
Inย conclusion, the persistent boost in the โvalid Ethereumย (ETH) balance in the deposit contractโ demonstrates how validators actively take part in Ethereumย (ETH) 2.0. Their ongoing staking activity not only supports the networkโs transition to Proof of Stake but likewise boosts confidence in futureย ofย the Ethereum.
