Ethereum Trading in Red as Market Sentiment Remains Uncertain
On Wednesday, Ethereum, the second-largest cryptocurrency, experienced a decline in price amid a volatile and uncertain market sentiment ahead of the FOMC Meeting. The price of ETH dropped to $2300, attempting to stay above the 50-day EMA slope. Despite the uncertain technical outlook, Ethereum’s fundamental developments are progressing, particularly with its anticipated 2024 hard fork called Dencun.
Dencun Upgrade Successfully Launched on Sepolia Test Network
The latest milestone for Ethereum is the successful launch of the Dencun upgrade on the Sepolia test network, marking a significant step forward. This leaves only one more testnet deployment before introducing the “proto-danksharding” feature.
Proto-Danksharding: A Key Enhancement for Transaction Costs
Proto-danksharding is a crucial enhancement aimed at reducing transaction costs on layer-2 blockchains and decreasing data availability expenses. This will be achieved by introducing a new type of data storage known as “blobs.”
Bear Trap Sets Stage for ETH Price Rally Above $2700
- A recent breakdown below the support trendline suggests a prolonged correction trend.
- A healthy retracement in ETH price maintains an overall bullish trend.
- The intraday trading volume in Ether indicates a 45% gain.
Amidst the post-ETF correction in the crypto market, Ethereum’s price initially dropped to $2171 from $2714, representing a 20% decrease. However, the price found support around $2200 and experienced a 6% increase within a week, reclaiming the breached support level. This failed breakdown could lead to increased buying activity and a new recovery trend in the market.
This failed breakdown could lead to an uptick in buying activity and foster a new recovery trend in the market.
According to crypto analytics firm Santiment, Ethereum’s network is showing significant growth and vitality. With over 101,000 new Ethereum addresses created daily and 484,000 unique addresses actively engaging with the network, the Ethereum ecosystem is expanding rapidly. The daily network expansion has also increased by 28% compared to three months ago.
If the channel pattern remains intact, the ETH price is expected to rally and retest the overhead trendline at $3000. There may be resistance levels at $2430 and $2700 along the way.
- Exponential Moving Average (EMA): The price trading above the 100-day and 200-day EMA indicates a bullish long-term outlook.
- Moving Average Convergence Divergence: The MACD and signal line nearing a bullish crossover suggest a potential recovery sentiment for this asset.
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Hot Take: Ethereum’s Recovery Trend Amidst Market Uncertainty
Ethereum’s price has experienced a decline amidst a volatile market sentiment. However, with its fundamental developments progressing and the successful launch of the Dencun upgrade, there is potential for a recovery trend. The recent support around $2200 indicates renewed buying interest, and if the channel pattern holds, a rally towards $3000 is possible. Ethereum’s network is also displaying significant growth and vitality, with daily network expansion increasing by 28% in the past three months. With these positive factors, Ethereum’s recovery and expansion in the crypto market remain promising.
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