Ethereum Price Analysis
The ETH/USD ended the day at $4535.53, having reached a high of $4604.898 and a low of $4421.72.After falling from its new all-time high on Wednesday, ETH/USD maintained its bearish momentum and fell for another day on Thursday. Ethereum failed to stay for long at its new all-time high level above $4600 and dropped the next day as investors started booking profits. The selling pressure increased around the second-largest cryptocurrency in the world and dragged its prices to the downside. However, the decline was not massive as there were more positive developments surrounding the Ethereum ecosystem.
The record-breaking highs touched by Ethereum over this past week were in part due to the rising popularity of non-fungible tokens (NFTs) and Decentralized Finance (DeFi) projects. Over the last year, ether has outperformed the leading cryptocurrency, bitcoin, by more than 1025%.
Ethereum has the most dominant position in the space of DeFi as the total value locked in Ethereum accounts for about 67% of the total DeFi TVL, with $172.75 billion. The leading percentage makes the Ethereum network a top smart contract platform in the crypto space as most users start their DeFi journey through this platform.
The growing speculation on the value of Ethereum for its role in the so-called metaverse after Facebook rebranded itself in an aggressive push to lean into the next phase of digital development has also helped Ethereum grow in value. Meanwhile, the Ethereum-powered virtual world "The Sandbox" has announced that it managed to raise $93 million in its recent funding round, accompanied by SoftBank Group's second venture capital fund, Vision Fund 2.
Furthermore, the transition from the Proof-of-Work to Proof-of-Stake mechanism and the shift to Ethereum 2.0 prospects have kept ETH prices higher in the market. The first phase of the shift from PoW to PoS was the launch of Ethereum's Beacon Chain, and the next thing will be to combine this Beacon Chain into the Ethereum mainnet. After that, sometime in 2022, Shard Chains will split the network to allow for greater storage of data and processing transactions. The upcoming upgrades have also been keeping ETH/USD prices higher this year.
ETH/USD Intraday Technical Levels
Pivot Point: 4520.74
ETH/USD - Technical Outlook
The ETH/USD is trading in a choppy session, maintaining a narrow trading range of 4,416 – 4,611 level. Recently, it has crossed above an intraday pivot point level of 4,516. However, the market may not show us a continuation of an upward trend unless the 4,611 level gets violated.
On the 4-hour timeframe, the ETH/USD coin has formed an upward channel that’s supporting a buying trend in the ETH/USD pair. On the higher side, the major resistance stays at the 4,611 level and a bullish breakout of this level exposes the pair towards the 4,710 and 4,805 levels.
On the support side, the immediate support holds around the 4,416 level and a breakout of this level exposes the coin towards the 4,321 and 4,221 levels. Let’s keep an eye on the 4,416 level as bullish bias dominates this and vice versa. All the best!
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