With the continuous development of the cryptocurrency market, Ethereum (ETH), as one of the most important blockchain platforms, has received much attention. However, in the past period of time, the price of ETH has been declining, and the market has raised concerns about its prospects
With the continuous development of the cryptocurrency market, Ethereum (ETH), as one of the most important blockchain platforms, has received much attention. However, in the past period of time, the price of ETH has been declining, and the market has raised concerns about its prospects.
However, we believe that Ethereum still has great potential for recovery. Firstly, Ethereum is currently the most popular smart contract platform, occupying a dominant position in decentralized applications (DApps) and primary currency issuance. This makes Ethereum the preferred platform for many blockchain projects.
Secondly, Ethereum is undergoing significant upgrades, with the most notable being Ethereum 2.0. This upgrade will improve Ethereum's scalability and security, and introduce a Proof of Stake mechanism to reduce energy consumption. This will further enhance Ethereum's competitiveness and attract more developers and users.
In addition, Ethereum is continuously promoting the development of DeFi (Decentralized Finance). DeFi has become a hot field in the cryptocurrency industry, with Ethereum as the main platform carrying many important DeFi projects. As DeFi continues to grow, Ethereum will continue to benefit from this trend.
Since the beginning of 2023, the US dollar price of Ethereum (ETH) has increased by 36%. However, considering that ETH's current trading price is 66% lower than its peak of $4870 in November 2021, this recovery may be a small increase.
ETH and BTC integration!
On September 20th, Ethereum/Bitcoin (BTC) hit its lowest level in the past 14 months, breaking through the key support of 0.06BTC. This situation has raised questions among Ethereum investors about the factors behind the price decline and what measures need to be taken to reverse this trend. ETH buyers attribute their greatest hope to protocol upgrades, which can significantly reduce the demand for new tokens when transitioning to a proof of equity consensus mechanism.
The hopeful rise occurred in mid September 2022, with an annual issuance rate of only 0.25% of the total supply. In addition, the Shapella upgrade on April 12th allowed investors to withdraw from the original pledge agreement, addressing a major concern for investors. Previously, rewards for recharging 32ETH and participating in online consensus were both indefinitely locked in.
As these major obstacles are overcome with minimal problems, the confidence of Ethereum investors has increased. They predicted that the price of Ethereum would exceed $2000, which became a reality on April 14th. However, this positive outlook is short-lived, and just a week later, the price of ETH quickly dropped to the level of $1850. Despite Ethereum's net withdrawal of pledges, within 30 days after the Shaappela upgrade, Ethereum had a net inflow of 3.1 million ETHs, even exceeding the most optimistic expectations.
The Development of Ethereum Network!
Considering that the planned development of the Ethereum network, although often delayed, is still in progress overall, investors may need to explore other potential catalysts to reverse the current downward trend of ETH prices relative to BTC. One of the catalysts may be the ongoing legal struggle between Ripple and the US Securities and Exchange Commission (SEC), which could seriously affect the price momentum of Ethereum.
The SEC claims that selling XRP to individual investors constitutes a securities issuance. However, in July, Judge Analisa Torres ruled that XRP (especially when distributed through exchanges) is usually not classified as a security under SEC rules.
Ethereum finds itself at a critical moment. The current trading price is approximately $1576, only $26 higher than the important support level of $1552. This specific price point has always attracted the accumulation of whales, making it a key level worth paying attention to.
The trading volume of Ethereum has been declining, which is usually a precursor to increased volatility. The decrease in trading volume, coupled with the asset approaching a critical support level, creates a tense atmosphere. Market participants are closely monitoring whether the support will continue or lead to further price depreciation.
More complex is the death crossing that occurred a long time ago, which is a bearish indicator where the 50 day moving average crosses below the 200 day moving average. This technological event usually indicates the continuation of downward pressure, and in the case of Ethereum, it has not been proven that this is not the case.
The Ethereum network has always been a hotbed of innovation, especially in the field of DeFi. However, despite technological advancements, this asset is not immune to market forces. The current technological settings indicate that unless significant catalysts change its development direction, Ethereum may face more downside risks.
Essentially, Ethereum is at a crossroads. The combination of declining trading volume, key support levels, and lingering death intersections has formed complex factors that traders and investors must deal with. The next trend of this asset is likely to set the tone for its short-term trajectory.
Caldano Encounters a Triangle
ADA found himself in a dangerous position and sailed through the narrow strait of the descending triangle. As ADA approaches the apex of the triangle, market participants are preparing for an outbreak of volatility. According to the latest data, the current price of ADA is approximately $0.2447.
The descending triangle is a pattern that typically indicates the continuation of bearish sentiment. However, it is worth noting that this pattern may break through upwards or downwards. The key is to observe the decisive trend of trading volume. When it comes to trading volume, ADA's trading activity is relatively low, which usually precedes sharp fluctuations.
The Cardano Network is highly praised for its focus on rigorous academic research and peer-reviewed blockchain development methods. However, despite Caldano's lofty ideals, it was not immune to the impact of the market downturn.
The convergence of the moving average further confirms the concept of impending fluctuations. When the moving average converges, it usually indicates that the market is in a period of indecision, which is the struggle between long and short positions. Once one party gains the upper hand, the asset typically fluctuates significantly in that direction.
Unexpected Dynamics of Chaigou
Careful observation of the Chaigou data reveals a surprising turning point: SHIB is actually in an upward trajectory. Although long-term price trends may indicate that this is not the case, the asset has been subtly climbing despite some fluctuations.
The current price trend of Chaigou implies the formation of a "bearish flag". A bearish flag is usually a sustained pattern indicating a potential downward breakthrough. However, it must be noted that these patterns are not static and may sometimes exceed expectations. This is the best performing cryptocurrency in September. When Chaigou faced strong price rejection from the commonly used technical indicator 21 Index Moving Average (EMA), it ushered in a critical moment. This refusal led to a 3% price reversal for SHIB, adding another layer of conspiracy to its price trend. Although a 3% change may not sound groundbreaking, even a small percentage change can have a significant impact in the high-risk world of cryptocurrency trading.
What does this mean for a firewood dog? The asset found itself in a complex situation. On the one hand, the formation of a bearish flag and the rejection of the 21 day moving average indicate a potential downward trend. On the other hand, the asset has been quietly rising, ignoring broader bearish sentiment.
Finally, Ethereum also has a strong community support and developer ecosystem. This vast community provides continuous innovation and improvement for Ethereum, and is driving its development globally. This community strength is one of the key factors in Ethereum's recovery.
In summary, although Ethereum has experienced price declines in the past period of time, we believe it still has great potential for recovery. Its leading position as a smart contract platform, major upgrade plans, growth in the DeFi market, and strong community support are all the foundations for Ethereum's future thriving development. Investors and users can continue to closely monitor Ethereum and look for opportunities and potential within it.
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