ETH/USD Price Analysis – June 21, 2023

Daily Price Outlook

Ethereum is currently priced at US$1,732.08, with a 24-hour trading volume of $5.22 billion. Over the past day, ETH has experienced a slight decline of 0.43%.

The seven-day high of $1,760.91 remains 1.64% away, while the seven-day low of $1,628.66 is 6.35% away. The current supply of Ethereum stands at 120.21 million ETH.

Optimism Emerges as Leading Ethereum Layer 2 Solution

The SEC’s crackdown on Ethereum Layer 2 scaling solutions has intensified competition in the market. Previously, MATIC from Polygon Network held the title of the largest Layer 2 scaling solution.

However, Optimism (OP) has gained significant traction, witnessing a surge in active addresses. Crypto intelligence trackers highlight a decline in everyday user activity on the MATIC network, indicating potential dominance of OP in terms of usage and user approval.

Ethereum Price at a Crucial Juncture

Ethereum’s price has surpassed the $1,703 support level, but it remains uncertain if this marks the start of a recovery rally. If ETH fails to maintain support, a retest of the daily inefficiency range between $1,478 and $1,563 is anticipated.

Such a change could result in a 9.30% decrease in the price of Ethereum. However, if Ethereum maintains its position above $1,703, bullish sentiment may prevail, with resistance levels at $1,817 and $1,853 becoming potential targets.

Cardano Unveils Version 8.1.1, Boosting ADA Price Recovery

Cardano (ADA), known as an Ethereum competitor, recently faced SEC classification as a “security.” This led to a sharp decline in ADA’s price, and the altcoin has been striving to recover since June 5.

The creators of Cardano’s blockchain have now allowed Staking Pool Operators (SPOs) to update to the latest Node 8.1.1 on the mainnet. This development is expected to catalyze ADA price growth and support its recovery efforts.

ETH/USD Price Chart – Source: Tradingview

ETH/USD – Technical Analysis

Taking a look at Ethereum’s technical indicators, we see a strong bullish bias as it bounces off the critical support level of $1,700, represented by the exponential moving average.

Ethereum recently broke through the triple top pattern at $1,775, indicating a bullish surge towards the next resistance level at $1,841. The presence of a descending trend line on the four-hourly timeframe adds weight to this resistance level.

However, a bearish correction may be triggered if candles close below $1,840, potentially leading ETH/USDT to find support at $1,800 or even lower at $1,775.

On the flip side, a bullish breakout above $1,840 could propel Ethereum’s price towards the next target level of $1,916.

It’s worth noting that the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have entered the overbought zone, suggesting a potential slowdown in bullish momentum and a possible opportunity to short ETH below the $1,840 level.

In summary, $1,840 holds great significance as today’s pivotal point, warranting close monitoring. Traders should consider a sell position below this level and anticipate a buy position above it.