Ethereum
Ethereum (ETH) exceeds $3,000: are we saved?
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Ethereum has managed a breakthrough above $3,000, but the current state of affairs suggests that the second-largest cryptocurrency on the market could still face problems. The price has started an immediate reversal and Ether could face additional selling pressure if it falls below $3,000.
Currently, Ethereum is trading around $3,005, with resistance levels at $3,200 and $3,400. If ETH manages to break through these levels, it could signal a stronger uptrend than today. However, if Ethereum falls below $3,000, the support levels to watch are $2,900 and $2,800. A decline below these levels could indicate a worsening of the downtrend.
Recent price developments show that Ethereum struggling to maintain its upward momentum. The 50-day EMA around $3,067 and the 200-day EMA near $2,800 are critical levels to watch. Crossing the 50 EMA mark would be a positive sign, while a fall below the 200 EMA mark could trigger increased selling pressure.
On-chain data provides additional information. The number of active addresses on the Ethereum network fluctuates, indicating different levels of user activity. Currently, the number of active addresses is around 450,000, down from recent highs. Transactions on the network have also shown some variability, with daily transactions hovering around a million.
The Internet ETH issuance after EIP-1559 was slightly negative, suggesting more ETH is being burned than minted. For now, the situation has changed as activity on Ethereum’s L1 has decreased significantly.
Ethereum’s recent breakout above $3,000 is a promising development, but the asset still faces some issues. Key levels to watch are $3,200 and $3,400 on the upside, and $2,900 and $2,800 on the downside.