The price of Ethereum has started a recovery above the $1,780 level against the US Dollar, however it must clear the $1,820 level to see a decent increase in the near term. Ethereum is currently consolidating below the $1,820 resistance zone, trading below this and the 100-hourly Simple Moving Average. A major bearish trend line is forming with resistance near $1,818, which is close to the 50% Fib retracement level of the key decline from the $1,872 swing high to the $1,761 low. If Ethereum fails to clear the $1,820 resistance, it could start another bearish wave.
This article originally appeared on www.newsbtc.com
Ethereum, often referred to as the world’s second-most valuable cryptocurrency next to Bitcoin, has had its fair share of ups and downs. However, recent indicators suggest that the cryptocurrency could experience a significant boost in price if it clears a specific resistance.
The resistance that many analysts are referring to is the 200-day moving average, which is currently resting around the $2,000 mark. If Ethereum manages to surpass this level, it could experience what some are calling “liftoff” as it breaks out of the previous trading range and continues on an upward trend.
One factor that could contribute to this potential price surge is the growing popularity of decentralized finance (DeFi) platforms that operate on the Ethereum network. DeFi has grown exponentially over the past year and shows no signs of slowing down, with more and more protocols being built on the Ethereum blockchain to facilitate various financial products and services.
Another factor to consider is the increased use of Ethereum for non-fungible tokens (NFTs), which are becoming a hot commodity in the digital art and collectibles market. As more people buy and sell NFTs on the Ethereum network, demand for the cryptocurrency could increase, leading to a rise in price.
Of course, there are also factors that could work against Ethereum, such as increased regulatory scrutiny or competition from other cryptocurrencies. However, the overall sentiment among analysts and investors seems to be bullish for Ethereum in the long-term.
In conclusion, Ethereum’s price could potentially see a significant boost if it clears the 200-day moving average resistance. With the growing popularity of DeFi and NFTs, there are several reasons to be optimistic about the future of Ethereum. However, as with any investment, it’s important to do your due diligence and carefully consider all factors before making any decisions.