Cryptocurrency continues to spend the weekend peacefully. BTC found buyers at a level of $28000
Cryptocurrency continues to spend the weekend peacefully. BTC found buyers at a level of $28000. Although it is not possible to break through the critical level of $28300, the fact that BTC prices are hovering near this limit brings hope to investors. However, the release of US inflation data in the coming days may bring losses to investors.
Why did Ethereum (ETH) not reach $2000?
ETH coins in 2023The price of has increased by 35%, but despite multiple attempts, the psychological resistance level of $2000 has not been permanently surpassed. In addition, a large portion of counterfeit coins have achieved greater profits this year.
So, what exactly is causing EthereumDespite multiple attempts, the price cannot break through this psychological resistance level?
ETH bear market fractal
The trend of the king of counterfeit coins this year is similar to the trend of around $425 from 2018 to 2019. In both cases, it is difficult for the Ethereum to close above the Fibonacci retraction line at 0.236. From 2018 to 2019, the 0.236Fib line approached $425, limiting Ethereum's recovery attempts. In 2023, the same line is located in the $2000 area.
The strengthening of the US dollar
DXYThe rise in prices has affected the entire market and also reduced demand for ETH. In 2023, the weekly correlation coefficient between Ethereum and the US dollar index (DXY) continued to suppress prices.
According to CoinShares' weekly report, the net capital held by Ethereum related investment funds has decreased by $114 million so far in 2023 due to investors turning to safer havens.
In addition, the daily trading volume of ETHETF, which opened on Monday, was only $2 million, indicating weak risk appetite.
Ethereum Network Activity
Since 2023, TVL has decreased from 18.41 million ETH to 12.79 million ETH. Online activities are decreasing, and ETH transaction fees reached their lowest level in the year on October 5th. The decrease in transaction costs will also have a negative impact on the combustion rate. Although inflation has turned negative with the transition to PoS, it has returned to a positive value within 30 days.
If online activity remains weak, the supply of Ethereum will decrease and demand will have to increase. This means that prices also need to combat inflation.
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