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Ethereum Is At a Pivotal Resistance, and a Rejection Could Send ETH to $300

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  • Ethereum has seen a strong performance in the past 24 hours.
  • The coin has reached its highest price in days as it moves to $360.
  • While this is bullish price action, Ethereum printed a number of wicks above the current price.
  • This important as above ETH’s current price is an important horizontal resistance.
  • Ethereum failing to surmount this level and flip it into support exposes the coin to a drawdown, analysts say.
  • Bitcoin may end up dictating ETH’s price action at the end of the day.
  • Analysts should watch Bitcoin and Ethereum in the coming days to determine the direction the rest of the crypto market will move.

Ethereum Is Primed to Drop as It Fails to Pass a Key Resistance

Ethereum failing to move past the resistances in the $365-375 region could result in a strong correction according to top analysts.

Michael Van De Poppe, a crypto analyst and a trader at the Amsterdam Stock Exchange, says that should the cryptocurrency fail to move past this resistance, it could drop towards $300, then slightly lower. This region is important as it’s where a number of ETH corrections bottomed in the past two months.

“All right, this one is moving upwards and that’s good. However, the crucial hurdle is around $366-375 to break. If that breaks, $ETH is ready for $415. If not, I assume $280 as a likely possibility for further corrective movements in Q4.”

Chart of ETH's price action over the past few months with analysis by crypto analyst Michael Van De Poppe. Chart from TradingView.com

All Eyes on Bitcoin

While Ethereum may be in no man’s land in and of itself, Bitcoin’s price action will dictate that of altcoins moving forward.

Analysts are optimistic about BTC after the coin surged towards $11,000 on Sunday evening. The surge convinced many that the prevailing short-term trend is bullish as opposed to bearish.

As reported by Bitcoinist previously, one analyst shared the chart below. It shows that Bitcoin’s recent price action has been pivotal in that the cryptocurrency bounced off a historical support.

Image

Chart of BTC's macro price action since the start of 2017 with analysis by crypto analyst MacroCRG (@MacroCRG on Twitter). Chart from TradingView.com

Further gains in the price of Bitcoin will drive Ethereum higher as the two markets are somewhat correlated with one another.

What may happen, though, is that the exact price performances of BTC and ETH diverge as fundamental trends drive the magnitude of moves in different directions. As seen over recent months, Ethereum has largely outperformed Bitcoin due to trends in decentralized finance.

Featured image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Ethereum Is At a Pivotal Resistance, and a Rejection Could Send ETH to $300





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Ethereum

‘Ethereum Improvement Proposal 3675’ for the Eth2 merge launches on Github

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A formal Ethereum Improvement Proposal has been created for the network’s forthcoming chain merge, bringing Ethereum one step closer to realizing its highly anticipated Proof-of-Stake (PoS) transition.

On July 22, ConsenSys researcher Mikhail Kalinin created a pull-request for EIP-3675 on Github, formalizing the chain merge as an improvement proposal for the first time. The EIP has also been slated for discussion during the July 23 Ethereum Core Devs Meeting by developer Tim Beiko.

The proposal would merge the Ethereum and Eth2 chains, transitioning the network’s consensus mechanism away from Proof-of-Work and empowering stakers to validate transactions.

The EIP notes that no “safety nor liveness failures were detected” since the launch of Eth2’s beacon chain in December 2020, adding:

“The long period of running without failures demonstrates the sustainability of the beacon chain system and witnesses its readiness to start driving and become a security provider for the Ethereum Mainnet.”

Despite the EIP, many leading figures in the Ethereum community, including lead developer Vitalik Buterin, believe it is very unlikely the chain merge will occur during 2021.

The EIP comes amid bidding for the EIP-1559 Supporter NFT series which was launched via Mirror on July 21. The nonfungible tokens demonstrate support for the introduction of a burn mechanism to Ethereum’s fee market as part of the network’s coming London upgrades. All proceeds will be shared among 1559’s contributors, and the tokens were designed by artist “Kitteh.

Since the launch of the beacon chain in December, Eth2 has emerged as the second-largest PoS network by staked capitalization in USD terms, with $12.7 billion worth of Ether locked in staking despite less than 6% of its circulating supply having been deposited.

According to Staking Rewards, Cardano has the largest staked capitalization with $24.2 billion and 62% of supply locked. Solana ranks third with $10.2 billion from 74%, followed by Polkadot with $9 billion from 63%.