One of the biggest cryptocurrencies in the world, Ethereum, could gain further momentum if it can get past the $1800 resistance level. Several basic and technological elements that influence the price of ETH support this. If this resistance barrier is passed, Ethereum could go on a rally.
Ethereum Could Go on a Raly According to Price Analysis
With a 24-hour trading volume of $9,996,057,345 and a price fall of 2.58%, ETH is currently trading at $1,717.92. Its value has declined by 1.47% during the last week.
The trading volume of Ethereum has increased by 16.90% in the most recent day, according to recent market activity. The current price of Ethereum is 64.83% lower than its all-time high of $4,878.26, which was reached on November 10, 2021, more than a year ago. On the other hand, the current value has increased by an astounding 396,186.20% from the all-time low of $0.432979, which was reached seven years ago on October 20, 2015.
The projected $206,944,200,797 fully diluted valuation (FDV) of Ethereum represents the total market cap if all 120 million ETH tokens were issued. With a price reduction of just 1.30% over the past week compared to the market’s 4.60% drop, Ethereum has outperformed the whole cryptocurrency market.
ETH Price Prediction: ETH/USD Daily Chart Analysis
Ethereum’s price is determined to surpass the $1855 barrier level. As a result of multiple tests, the resistance level is now more robust. Yet at $1700, the cost of ETH already respects psychological support. That demonstrates that there is a strong likelihood that the price of ETH will increase soon.
Moreover, ETH is moving strongly in the direction of the bull as it is trading above both the 50-day and 200-day moving averages. Also, the relative strength index (RSI), which is currently trading above the 50-level level, is positive. According to the study above, ETH’s price might hit $2054 if it rises above the resistance level. If the resistance zone gets too powerful, the price may reverse course and move back to the support level.
Ethereum Could Go on a Rally, Suggests These Fundamental Factors
Here are some of the fundamental factors that support Ethereum’s potential price increase:
1. DeFi Growth
One of the most popular uses of blockchain technology is DeFi (Decentralized Finance). Ethereum is quickly taking over as the preferred platform for DeFi development, and several notable DeFi projects, such as Uniswap and Compound, have collected significant sums of money through token sales. DeFi’s quick expansion increased interest in Ethereum, pushing up the price of ETH significantly in the process.
2. Transaction Needs
Some blockchain apps, such as DeFi, NFT (Non-Fungible Token), and others, use Ethereum as a platform for transaction processing. Ethereum is becoming more and more necessary as a form of payment due to the growing use of the blockchain, which will raise demand and drive up the price.
3. Changes in the Economic Model
Ethereum is getting ready to switch from Proof of Work (PoW) to Proof of Stake (PoS), a significant change to its economic architecture. This modification is anticipated to increase network security and efficiency while lowering transaction costs. A stronger Ethereum price may result from more investor interest in the cryptocurrency as a result of this change in the economic paradigm.
Ethereum’s Daily Chart Analysis
The price of Ethereum recently broke through the symmetrical triangle pattern on the daily time frame and the 50-day moving average line (approximately $1600). But, ETH is currently trading in a very narrow range above the broken triangle and has not yet confidently broken over $1800.
A retracement towards the 50-day and even the 200-day moving averages, which are placed around the $1600 and $1400 levels, respectively, could be anticipated if the market fails. On the other hand, a valid break above the $1800 level would trigger a new short-term rally with the $2K level as a first-time goal in 2023 and the $2300 area as a secondary target.
Given that the price has been bouncing around the $1800 resistance level on the 4-hour chart, the consolidation is more noticeable and indicates that Ethereum could go on a rally. For some time now, the RSI indicator has been displaying a clear bearish divergence signal, which may be an indication that a drop is imminent. In this situation, the $1650 level and the $1500 level might both be retested as supports. Nonetheless, it is still too early to say if the bullish trend will continue or turn around because the market has not yet made up its mind in the face of the $1800 resistance.