In the crypto panorama, Ethereum doesn’t cease to defy odds. On a 24-hour scale, the price has nudged up by 0.5% to touch $1,866 amidst a fairly vibrating market. While a 2% dip in a week could raise a brow, a glance at the 14% increase in a couple of weeks and the impressive 56% surge since the inception of 2021 adds a tint of optimism.
What’s intriguing, indeed, is the Ethereum’s 24-hour trading volume surpassing $6 billion. A high trading volume coupled with noticed big whale transfers stir up prospects for further gains. However, remember to factor in the inherent unpredictability of crypto markets.
Returning to the technical indicators, a jump from just under 40 yesterday to just over 50 today in the relative strength index signifies growing buying pressure. Furthermore, the 30-day moving average seems to have steadied after a while, a sign that could herald further gains.
Mark the rise in Ethereum’s support level in the last couple of weeks, which forms an interesting pennant with its resistance level—a sign that a break may occur leading to significant price movement. However, associating the fundamentals, market factors, and general position with Ethereum, an upward movement seems more plausible than a downward fall.
Factoring in the patterns witnessed in big whale trades shows a substantial amount of Ethereum being sold, suggesting that now might be the time whales might start accumulating again. One must not forget that Ethereum dominates the DeFi market share, and every unit staked means less of it in the market—roughly 20% of Ethereum’s supply is already locked up. This, together with transaction fees reduction, suggests a future of scarcity and thereby, increased demand.
However, no matter how fundamentally sound Ethereum is, the possibility of huge growth spurts in the immediate future should be taken with a pinch of salt. The price appreciation of Ethereum is likely to be more towards the gradual and long-term side.
Whereas, traders focused on immediate returns might be more inclined towards newer, untested altcoins. One in particular is the Thug Life Token (THUG)—a meme token just a few days into presale, boasting more than $100,000 already raised. About 70% of the total supply is allocated for the presale, making it appealing in terms of community management.
Remember, cryptocurrencies pose significant financial risk, exercise caution before investing and always do your own research.
Source: Cryptonews
