Ethereum has been stagnant for an extended period, leaving the market uncertain and full of bearish sentiment. However, the price is consolidating within a tight range and a break could finally signal the direction of the next move.
Technical analysis
By Shayan
the daily chart
The price faced resistance at the $2K level and subsequently dipped below a short-term uptrend line. It is now experiencing a pullback to test this same trend line.
Meanwhile, ETH is facing the 100-day moving average, which represents a strong support level positioned at $1,781. A significant increase in selling pressure would be required to push the price below this vital price point.
ETH is currently confined within a tight range, roughly between the 100-day moving average at $1,781 and the uptrend line around $1,890. A breakout of this range will likely determine the near-term outlook for Ethereum.
The 4 hour chart
Approaching the 4-hour chart, the dull price action becomes more apparent, with small candlesticks indicating a lack of clear direction. During the consolidation phase, Ethereum briefly touched the upper limit of the falling wedge pattern but was rejected.
On the 4-hour time frame, three important price zones come into play: the lower threshold of the multi-month rising channel (indicated by purple lines), the significant $1.7K level acting as support, along with the $1.7K line. wedge top trending. pattern (marked with yellow lines), serving as resistance.
Given the current price action, it is challenging to anticipate the near-term outlook for Ethereum until a breakout occurs.
chain analysis
The continued increase in the ‘valid ETH balance in the deposit contract’ serves as a significant testament to the active engagement of validators in Ethereum 2.0. This remarkable transition is built on the fundamental assumption that the revolutionary ‘Proof-of-Stake’ consensus mechanism has already been successfully implemented.
The continued commitment of validators to stake their ETH in the deposit contract has profound implications for the future of Ethereum. Beyond its immediate importance in facilitating the Ethereum 2.0 upgrade, this growing participation activity is seen as an encouraging sign reinforcing optimism regarding the future trajectory of Ethereum prices.
In summary, the persistent increase in the ‘valid ETH balance in the deposit contract’ demonstrates how the validators actively participate in Ethereum 2.0. Their ongoing staking activity not only supports the network’s transition to Proof of Stake, but also increases confidence in the future of Ethereum.
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off your first month’s fees for Binance Futures (terms).
PrimeXBT Special Offer: Use this link to sign up and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposits.
Disclaimer: The information found on CryptoPotato is that of the writers cited. It does not represent the views of CryptoPotato on whether to buy, sell or hold investments. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. Consult the Legal Notice for more information.
cryptocurrency charts by TradingView.
