- ETH price holds above $1,200 as bulls don’t want to let go of a price below key support
- Price continues to trade below 50 and 200 Exponential Moving Average (EMA) on the daily timeframe.
- ETH price bounced on the four-hourly chart after a bullish divergence appeared.
The price of Ethereum (ETH) has shown less bullish sentiment after its much anticipated “Ethereum Merge.” Ethereum saw its price plummet against tether (USDT) following the Federal Open Market Committee news (FOMC). The Federal Reserve raised its target interest rate by 75 bps, negatively affecting the price of ETH. (Data from Binance)
Ethereum (ETH) Price Analysis On The Weekly Chart
The price of ETH continues to struggle to keep its head afloat after seeing the weekly candle closing bearish, with the new week looking more bearish ahead of the expected FOMC meeting.
ETH price tried showing some relief bounce ahead of the new week as price moved to a region of $1,370, but this bounce was cut short as the news of an increased rate hike harmed the price seeing the price of ETH to a weekly low of $1,250 before bouncing off that region as price reclaimed $1,300.
The price of ETH needs to move to a high of $1,500 to remain safe from falling lower to its crucial support. If the price of ETH continues with this structure, we could see the price of ETH breaking the support of $1,200 and going lower to a region of $1,024, where there is more demand for ETH price.
The price of ETH is currently faced with resistance to breaking above $1,324; If ETH fails to break and hold above this support zone, we could see the price going lower to its $1,200 key support and lower if this support fails to hold off sell orders.
Weekly resistance for the price of ETH – $1,324.
Weekly support for the price of ETH – $1,200.
Price Analysis Of ETH On The Four-Hourly (4H) Chart
The 4H timeframe for ETH prices continues to move in range as price retested a low of $1,250; the price of ETH bounced from this region after forming a bullish divergence as price rallied to a high of $1,320 before facing resistance to breaking higher.
The price of ETH needs to reclaim $1,400 for a chance to trend higher.
On the 4H timeframe, the price of ETH is currently trading at $1,310, just below the 50 and 200 Exponential Moving Average (EMA), acting as resistance for ETH price. The price of $1,400 and $1,540 corresponds to the resistance at 50 and 200 EMA for the price of ETH. The price of ETH needs to reclaim 50 EMA for a chance to trend to $1,500.
The Relative Strength Index of ETH is below 50, indicating fewer buy orders.
Four-hourly resistance for the ETH price – $1,400.
Four-hourly support for the ETH price – $1,200.
Featured Image From Istock, Charts From Tradingview
Regulatory Scrutiny Threatens Ethereum’s Rise, Will It Succumb Under Pressure?
Ethereum has been seeing increased regulatory scrutiny in recent months. This comes following the network’s move to a proof of stake mechanism and the introduction of staking to the others. As sanctions have been levied against protocols such as Tornado Cash, it is becoming increasingly possible that regulatory bodies may turn their focus to Ethereum. Now, it seems the parameters for determining whose purview ETH falls under are being hashed out.
Ethereum Might Be A Security
Previously, the Securities and Exchanges Commission boss Gary Gensler had said that the top two cryptocurrencies, Bitcoin and Ethereum, did not qualify as securities. But this was when both of these networks were still firmly operating under a proof of work mechanism.
With Ethereum’s move to proof of stake, the SEC is beginning to backtrack on the previous comments that Ethereum did not qualify as a security. It reasons that since there is now the availability of staking on the network, investors are currently “anticipating profits based on the efforts of others.” This gives it pause to say that the digital asset might now qualify as a security. It also follows the SEC boss’ view that most cryptocurrencies are currently operating as securities.
Meanwhile, the impact of Ethereum being classified as a security by the regulatory body has a lot of implications. The most prominent of these is that there are more ETH nodes running in the United States than in any other country, which would mean that a large majority of transactions would fall under the SEC’s purview.
Ethereum struggles to hold above $1,300 | Source: ETHUSD on TradingView.com
However, since these assets are yet to be classified as securities, there have been other speculations of what they could be classified as. The CFTC has previously been called to regulate the crypto industry, and Chairman Rostin Behnam has said that digital tokens are commodities and that the CFTC should be able to regulate them.
Will ETH Survive The Scrutiny?
Ethereum being regulated by either of these watchdogs can go a number of ways. Presently, it is expected that regulators will soon come out with a final classification for the digital asset and then put measures in place to regulate it as such. However, the price is likely to suffer for this.
The sanctions against the crypto mixer Tornado Cash already have ETH investors at the edge of their seats. Adding more regulation for ETH could tank the price of the cryptocurrency. ETH is already struggling to hold above $1,000, and any regulatory action will likely send its price to sub-$1,000.
Such a move against Ethereum would also greatly impact the rest of the decentralized finance (DeFi) and NFT market, triggering rapid declines in values across the space. In the end, the winner would be assets like Bitcoin, which are truly decentralized and would serve as a safe haven for crypto investors.
Featured image from BeInCrypto, chart from TradingView.com
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Ethereum Marks Three Consecutive Red Weekly Closes, Will Uptober Change Its Trajectory?
Ethereum has been one of the cryptocurrencies that have received major support from the crypto community regardless of how the price performs in the market. Since the Ethereum Merge was completed, though, the digital asset has not performed as well as expected. ETH’s price has continuously bled out, which has led to its price relegating to the low $1,000s. As the new month begins, speculations abound on whether the cryptocurrency has what it takes to recover.
Three Red Weekly Closes
Along with the rest of the crypto market, Ethereum’s price has suffered bitterly at the hands of the bulls. Once again, the curse of September reared its ugly head, and digital assets across the space saw more red than green during this time period. Ethereum itself had closed out the month with three consecutive red weekly closes, which has greatly impacted its performance in the market.
Over the last few weeks, the resistance to the digital asset has been mounting, and the bears have made a solid stand just above the $1,400 level. This is evidenced by ETH’s inability to beat this point, even with some rise in momentum.
ETH sees three consecutive red weekly closes | Source: ETHUSD on TradingView.com
Interestingly, Ethereum’s chart looks eerily similar to the same trend that was recorded back in September of 2021. This had been in the middle of the bull market right before ETH had hit its all-time high above $4,900. The digital asset had recorded three consecutive red closes, followed by a green close. What followed would be two months of weekly green closes that saw the cryptocurrency surge by more than 48%.
If this trend holds and Ethereum is able to successfully break through the $1,400 resistance point this week, then ETH’s price could rally to $1,800 over the next two months before eventually losing steam.
Can Ethereum Hold Up?
The weakness of ETH following the Merge has done a number on not only the digital asset but on investor sentiment. The majority of investors still opt to hold their coins for the long term. However, the sell-offs continue to wax stronger at this time.
Mainly, all eyes are on the Ethereum staking contract, where more and more of the supply are being sent each day. The contract currently sits at more than 14.1 million ETH are already staked, accounting for about 12% of the total supply. And since there is presently no way to withdraw these ETH, they are temporarily taken out of circulation, causing a significant drop in supply.
Nevertheless, the majority of ETH investors are still in profit despite the current low prices. This 53% of investors who have mostly held their coins for longer than a year remains in the green. However, profit-taking continues with exchange inflows reaching $4.49 billion for the last 7 days compared to outflows of $4.44 billion.
Featured image from El Cronista, chart from TradingView.com
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Ethereum Sees Surge In Number Of New Addresses – Will ETH Shine This October?
The Ethereum Merge upgrade is expected to haul in more new users on the network which happens to be true with the surge of new active wallet addresses on the platform.
- Ethereum’s new active wallet addresses climb to a new ATH of 3,001.804
- ETH seen to spike in terms of social media engagements and mentions
- ETH price up by 0.46% as of press time
According to a Twitter post by Glassnode shared on October 2, the number of new active wallet addresses on the Ethereum network recently climbed to a new ATH of 3,001.804.
While it’s true that this screams a boost in investor interest in the alt, the recent plunge in market volume and sentiment seems to be in contrast to everyone’s expectations to date.
The number of new active wallet addresses on the Ethereum platform is seen to have dropped in August and recovered since September.
Spike In Number Of ETH Addresses Trigger Increase In Social Metrics
The increase in the number of wallet addresses also triggered a spike in social media engagement of the altcoin. Ethereum has shown a significant improvement of 4.63% surge in terms of social mentions and also 27.6% in social engagements.
The Merge has created a lot of buzz on social media especially in the past month but the overall sentiment wasn’t purely positive. In fact, Ethereum is down in terms of weighted sentiment as seen in the last few days.
In addition, ETH value has also been moving downwards as seen in the past couple of days. The altcoin volume has retreated from 13.45 billion on September 30 to only 6.03 billion on October 2.
On the brighter side, even with the negative public sentiment, Ethereum still managed to attract more whale investors in the altcoin. Evidently, the top 500 ETH whales have gained interest in investing and buying the crypto.
The momentum of Ethereum has shown some growth as seen in the past three days indicating an increase in wallet transactions involving Ether.
Ethereum Development Activity Decreasing
More so, the altcoin also gained the approval of Deutsche Telekom following their announcement of planning to roll out an Ethereum validator.
On the other hand, the development activity on Ethereum has been spiraling down too which implies the decrease in activity on the GitHub.
The current market state has however negatively impacted Ethereum as even the Merge failed to meet expectations in terms of capital outflow.
Consequently, despite the growth in terms of wallet transactions and the rise in social media engagements, the price of ETH wasn’t able to keep up with the positive sentiment.
The coin is seen to recover a bit and is in the green lane as of publication. According to CoinMarketCap, ETH price has soared by 0.46% or trading at $1,304.30 as of this writing.
The ETHUSD pair is trying to break past the $1,317 level on the daily chart | Source: TradingView.com Featured image from Top Trend Coins, chart from TradingView.com
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