Fundamentally, Ethereum has never been in a better state. However, the price trend of ETH does not reflect this. It has been 100 days since the merger of Ethereum, and the network has become more environmentally sustainable and resilient. The workload proof mining is replaced by the equity proof consensus model. This reduces the network energy consumption by more than 99%. In addition, Ethereum consolidated below the resistance level of US $1230 against the US dollar. If the resistance levels of $1230 and $1250 are removed, ETH may start to rise steadily.
Ethereum leads NFT activities
It is reported that there are 15.7 million ETH pledges, accounting for about 13% of the total supply. At today's prices, it is worth about $19.2 billion. In addition, there are more than 490000 active verifiers on the Ethereum network. Due to the bad weather conditions and the pressure of the US power grid, the hash rate of Bitcoin has dropped significantly. Ethereum no longer has this problem.
Staking is not the only bullish fundamental aspect of Ethereum. It is also the world's top NFT ecosystem. According to Nansen, the total amount of NFT forged and traded on Ethereum in 2022 is 23.7 billion US dollars.
In addition, it is far ahead of Solana, the second largest NFT ecosystem. Other touted "Ethereum killers", such as Cardano and Polkadot, are even inferior in NFT activities. According to the Ultrasound. Money tracker, the circulation of Ethereum is close to zero. The supply has only increased by 0.012% per year, and has shrunk slightly from the peak of 121.3K ETH.
At present, the largest fuel consumption is CoinTool XEN batch coin machine, which has consumed 164 ETH in the past 24 hours. XEN is a token that anyone can cast. It has a pyramid of token economics, but it still seems to be very popular.
ETH's pessimistic price forecast
The positive fundamentals of networks and ecosystems are not reflected in price action. At the time of writing, Ethereum's current trading price was flat at $1220. The price barely changed over the weekend, as the asset has been fluctuating at the level of $1200. However, analysts predict that ETH will face more price pain in the future. In addition, technical indicators indicate that the current level of support may soon be broken. In addition, there is a bearish triangle. This led an analyst to predict that the ETH price would fall to $1080.
Ethereum Price Breakthrough
Ethereum remains a good bid above $1180 and $1190. ETH formed a bottom above $1190 and began to rise. There is significant movement above the $1200 resistance area and the 100 hour simple moving average. The price of the Ether climbed above the 50% Fiboracci retracement level, from the high point of the US $1237 swing to the low point of the US $1193 swing.
In addition, the key bearish trend line was broken through on the hourly chart of ETH/USD, and the resistance level was near $1215. The currency pair is currently consolidating near the 61.8% Fiboracci pullback of the downward trend from the high point of the US $1237 swing to the low point of the US $1193 swing.
The direct resistance level is around $1230. The next major resistance level is around $1250. It is clear that the upward breakthrough of the resistance level of $1250 may start to rise steadily. Under the above circumstances, the price may rise to the resistance level of $1300.
The next major resistance may be $1350. If the resistance level of $1350 is broken upwards, the price may rise to $1400. Any more gains could push the price into the $1500 resistance zone.
If Ethereum fails to break through the resistance level of US $1230, it may start another decline. The initial support level for the downtrend is around $1215 and the 100 hour simple moving average. The next major support is around $1200. The first major support is around $1190. A fall below $1190 may trigger a move towards $1150 support. Any further losses could lead to prices rising to the $1100 area.