Ethereum failed to settle above $1,650 and started a fresh decline against the US Dollar. ETH price is now trading in a bearish zone, with a risk of a drop below $1,400.
- Ethereum started a strong decline after it struggle to surpass the $1,700 zone.
- The price is now trading well below $1,550 and the 100 hourly simple moving average.
- There was a break below a major contracting triangle with support near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down if it fails to stay above $1,450 and $1,400 in the near term.
Ethereum Price is Showing Bearish Signs
Ethereum climbed above $1,650, but it failed to extend gains above the $1,700 level. A high was formed near $1,672 before ETH price started a fresh decline.
It seems like the price failed to surpass the 100 hourly simple moving average, currently at $1,650. There was a sharp decline below the $1,600 and $1,550 support levels. There was also a break below a major contracting triangle with support near $1,620 on the hourly chart of ETH/USD.
Ether price is now trading well below $1,550 and the 100 hourly simple moving average. It traded as low as $1,459 and it is currently consolidating losses. On the upside, an initial resistance is near the $1,565 level. It is close to the 50% Fib retracement level of the downward move from the $1,672 high to $1,459 low.
Source: ETHUSD on TradingView.com
The first major resistance is near the $1,600 level. The 61.8% Fib retracement level of the downward move from the $1,672 high to $1,459 low is also near $1,590. The main resistance is now near $1,650 and the 100 hourly simple moving average, above which there are chances of a strong break above $1,700.
Fresh Dip in ETH?
If Ethereum fails to continue higher above the $1,565 and $1,590 resistance levels, it could extend its decline. An initial support on the downside is near the $1,450 level.
The main support is near the $1,400 zone. If there is a downside break below the $1,400 support zone, there is a real risk of a sharp decline below the $1,350 and $1,320 levels. The next key support is near the $1,240 level.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $1,450
Major Resistance Level – $1,600
Ethereum competitor Near launches $800M developer fund as DeFi competition heats up
Smart contract ecosystem Near Protocol has earmarked $800 million for new funding initiatives aimed at growing its decentralized finance capabilities, offering the latest evidence that the highly lucrative DeFi market is still in its infancy.
The new funding, which includes the $350 million grants program announced by Proximity Labs last week, gives ecosystem developers added incentive to create new product offerings on Near, the company announced Monday.
Roughly $250 million will be allocated to existing ecosystem developers; another $100 million is earmarked for startup grants, with Near planning to fund more than 20 startups at a rate of $5 million each. The remaining $100 million will be spent on so-called regional funds across Asia, Europe and the United States.
Value locked in DeFi protocols has surged 936% over the past year, with Ethereum competitors such as Binance Smart Chain, Solana and Avalanche seeing considerable uptake, according to data from DappRadar. Ethereum projects account for roughly 66% of the total value locked across DeFi, according to industry sources.
Despite Ethereum’s overwhelming dominance, the DeFi market is growing at a torrid pace and is currently valued at over $247 billion — leaving plenty of room for competing platforms to capitalize. One year ago, the total value locked in DeFi projects was less than $13 billion.
Near accounts for a tiny sliver of the total DeFi market, but that could soon change as more developers tap into the new funding campaigns and users continue to search for alternatives to Ethereum-based protocols. As Cointelegraph recently reported, Ethereum’s competitors have seen an influx of users fleeing the high fees on the ETH network.
$2 Billion Worth of Ethereum Burned Since August
$2 billion worth of Ethereum could have been dumped on the market, but thanks to EIP-1559 it has been burned
Due to the rapid growth of the cryptocurrency market and the popularity of the NFT and DeFi industries, the Ethereum network reaches another milestone: more than $2 billion worth of Ethereum has been burned recently. The significant USD value of the burned tokens is also followed by a recent 15% price increase.
Ethereum burn rate
With the implementation of the EIP-1559 update, the fee-burning mechanism has been introduced to the network. Since then, Ethereum mining rewards are getting burned instead of going directly to miners’ pockets.
With network load increasing due to the popularity of the DeFi and NFT industries, the burning rate is moving up gradually with 616,000 Ethereum burned while a little bit over one million ETH have been minted.
At the current pace, the Ethereum burn rate remains at 0.58 with more Ethereum burned than earned by miners. If the network remains in the same condition until around the year 2023, Ethereum will become a deflationary coin, which means that the circulating supply will start to decrease progressively.
Effect on the price
While deflationary blocks are not something new, various fund managers and wealthy investors have expressed their feelings about the future of the coin by predicting that it will remain growing due to the constant reduction of the supply.
At press time, Ethereum is trading at $4,145, after reaching the previous ATH of $4,380 on Oct. 21. Cryptocurrency traders and investors have not yet moved Ether past the previous high, leaving it hanging close to the local peak.
Ethereum Price Analysis: ETH still holds below $4,200, swift breakout to follow today?
- Ethereum price analysis is bullish today.
- ETH/USD set a higher low at $4,000 yesterday.
- Ethereum looking to break $4,200 today.
Ethereum price analysis is bullish today as another higher low was set yesterday, leading to a move higher overnight. Therefore, we expect ETH/USD to continue higher and break the $4,200 mark later today.
The cryptocurrency market traded in the green over the last 24 hours, with Bitcoin up by 3.36 percent. Meanwhile, Ethereum gained 1.32 percent, while Solana (SOL) is the top performer with an 8 percent gain.
Ethereum price movement in the last 24 hours: Ethereum sets higher low at $4,000, returns below $4,200 resistance
ETH/USD traded in a range of $3,967.12 – $4,175.12, indicating substantial volatility over the last 24 hours. Trading volume has increased by 13.58 percent and totals $16.559 billion, while the total market cap trades around $488.65 billion, resulting in market dominance of 18.82 percent.
ETH/USD 4-hour chart: ETH ready to break $4,200?
On the 4-hour chart, we can see bullish momentum strong today as the $4,200 mark gets tested again.
Ethereum price action has seen a strong performance so far in October. After breaking out of a more than week-long consolidation on the 1st of October, a strong advance followed until the first resistance at $3,650.
Over th next weeks, two further waves higher were set. The first one took ETH/USD to just under $4,000, while the second one all-the-way to the previous all-time high at $4,400.
Since then, the Ethereum price has retraced again. Previous swing highs were retested over the weekend, with support found at $3,900. Yesterday, ETH/USD moved to $4,200, with no further upside seen, leading to another retracement.
Another higher low was set, pushing ETH back to $4,200 earlier today, which will likely lead to more upside over the next 24 hours.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bullish as a new high thigh was set yesterday, leading ETH back to the $4,200 local resistance. Therefore, we expect ETH/USD to break higher over the next 24 hours.
While waiting for Ethereum to move further, read our guides on LTC wallets, Gero wallets, and DeFi wallets.