The announcement of ETH rested on significant levels of resistance according to on-chain and technical information, but the problem below seems to be minimal based on the activity of the network.
Ether called Ether
throw it down
$1,605 in cash
it fell under a technical crisis based on technical analysis and on the chain, indicating that the strength below the $ 2,000 high price could continue in the period. At the same time, the lack of customers and a strong foundation will keep Ether from collapsing.
Ether faces long-term resistance levels
ETH/USD is up 42.80% from the start of 2023 thanks to a short-term decline in the altcoin market, positive investment sentiment and low levels. Based on the chain and technical conditions, the association stands at a very important pivot.
Glassnode’s Relative Unrealized Loss metric measures the loss rate on Ita books. The orange line represents the bull-bear pivot line, where a combination above this level indicates bear trending and vice versa. . . . . Often, the market starts a pattern after seeing from an all-time high or a long-term consolidation, indicated by a large drop in the Unrealized Loss metric.
Similarly, from a technical point of view, Ita bulls failed to overcome the resistance at 0.082 Bitcoin
BTC called BTC
throw it down
, bringing the price back to the same trading range between 0.053 BTC and 0.082 BTC.
Will this time be any different?
Based on historical standards, Ether missed previous lows by a wide margin; the low percentage of supply to profit increased to 42.1% compared to 20%-30% purchased in previous bear markets. This suggests that more pain may be ahead for patients with ETH. However, trends in the chain indicate strong activity and sales, reducing downside risk.
The evolution of Ether’s trading position shows a big difference between the current market and the previous market. Between 2018 and 2020, the flow of Ether in transactions was higher than the flow out, indicating that more people holding their coins on exchanges are selling. However, in the negative term for 2022, despite the decline in prices, exports remained strong, indicating weak sales in the current market. now.
The percentage of supply of Ether locked into smart contracts tells a similar story, there is no significant decrease in Ether locked into smart contracts. The uptrend that started at the end of 2020 strengthened in the fall of 2022, suggesting that it cannot be reversed in the near future.
Ether has a lot going on as the network continues to evolve to support continued use and scalability for Ether owners. Ethereum’s transition from proof-of-work to proof-of-stake in September 2022 is very significant for the network, as it became more environmentally friendly and, more importantly, less expensive.
Additionally, the proposal for the Ethereum Improvement Proposal 1559 originally implemented in 2022 indicates a burning of Etherum fees, which, together with a decrease in supply after the Merger, contributed to asset reduction. The amount of Ether has decreased by 0.015% since the Merger.
However, data from CoinShares, which specializes in digital asset investment products, suggests that more professional investors are uncomfortable with Ether, sticking primarily to Bitcoin. The fiscal year spent on Ether in 2023 is just $8 million, compared to $158 million in Bitcoin and $23 million in Bitcoin shortage.
The lack of regulation and the expansion of Ethereum’s challenges seem to be the main reasons behind the reluctance among institutional investors. Kraken was recently fined $30 million by the United States Securities and Exchange Commission for issuing ETH stakes, which the organization considered a security measure.
Since third-party providers like Kraken and possibly Coinbase are banned from offering these services, organizations may be reluctant to try it. try water pools, like Lido and Rocket Pool.
The high gas charges on Ethereum remain a long-term challenge limiting its widespread use. The average transfer price for ERC-20 assets on Ethereum is between $2 and $5, with simple fluctuations around $5-$20.
These prices are quite high compared to other chains with centralized payments. Though