- Ethereum’s fate hinges on its ability to break free from the prevailing momentum.
- ETH stands at $1,840, reflecting a marginal 0.36% decline, at the time of writing.
Ethereum, the second-largest cryptocurrency by market capitalization, finds itself ensnared in a tug-of-war between bullish and bearish forces, leading to a struggle in breaking through the $2000 mark. ETH had a 4.36% decline over the span of a month. Moreover, it is further echoed by a 3.04% drop in trading volume within the last 24 hours and a 0.30% reduction in market cap over the same period.
Despite some recent positive developments, such as the launch of PayPal’s Ethereum-based stablecoin and rising interest in Ether-based exchange-traded funds (ETFs) by financial giants, the network is grappling with a notable challenge – exorbitant gas fees. These fees, incurred for transactions including those involving smart contracts, have been averaging over $4 for the past two months. This has taken a toll on the demand for Ethereum’s decentralized applications (DApps), dampening the ecosystem’s growth.
One critical metric to monitor in assessing Ethereum’s user engagement is the utilization of DApps. The number of active addresses using DApps has notably decreased, with a 25% drop in active users over the last 30 days.
Bulls vs Bears
Moreover, the ETH daily price chart reveals a bearish sentiment. The price has been consolidating with bears having an edge. However, the daily Relative Strength Index (RSI) paints a mixed picture, with ETH hovering just below the neutral zone, marked by an RSI value of 45. As of now, according to CoinMarketCap, Ethereum stands at $1,840, reflecting a marginal 0.36% decline.
Looking ahead, Ethereum’s fate hinges on its ability to break free from the prevailing momentum. Should the current pattern continue, the potential for a trend breakthrough remains uncertain. In a bullish scenario, the ETH/USDT pair might witness a surge to $1,917, and possibly even reach $2,018. On the other hand, a downward trend could potentially drag the price even further, with experts cautioning of potential declines to $1,600 or even $1,458. Finally, the battle between bears and bulls remains an ever-evolving narrative.
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