May 16, 2022

Ethereum Hovering Over a Vulnerable Point; Could Trigger Decline

United States trading stats, and Ethereum prices keep going down as the day goes on. For the past 2 sessions, the price has been stuck under the $3K barrier. Ethereum is now hovering on a weak mark, and a break will send the pair much lower.

Assuming the price drops below the rising mark on the hourly charts, we should expect further declines. The bullish prognosis will be invalidated if the candlestick closes over $3K daily. ETH/USD is currently trading at $2,933.13, down by 0.93% on the day.

ETH is Searching For a Bearish Trigger

ETH/USD daily chart. Source: Trading view

The price of Ethereum has plunged 35% from its intraday highs of $3,548.51 on the hourly charts. Stock prices dropped as soon as a Doji candlestick appeared, followed by a large red candlestick. It is, nevertheless, important for bulls to retain the $2.95K mark, which has been in place since 11th April.

Furthermore, constructing a ‘Symmetrical triangle’ suggests that the price has neared the converging trends. The more people are selling; the more likely the uptrends from the triangle with minds on $2.75K will be lower.

On the other side, if the price can close over the trading session’s highs, bulls will be optimistic about a swift comeback above $3,1K. The 50-day exponential moving average will be pierced, and the symmetry triangle will be broken.

Investors should gather buy-side liquidity as they approach the $3.4K horizontal resistance mark. According to CoinMarketCap, the 2nd greatest cryptocurrency had a 24 hours market cap of $19,789,392,413.

Chainalysis: Cryptocurrency Investors Did Well Last Year

People who work for a company that provides high-quality blockchain data and analysis said this in a report that looked at last year’s cryptocurrency profits country by country. According to the report, Ethereum generated $76.3B in global investment, while Bitcoin generated $74.7B.

The rise, according to Chainalysis, reflects the rising demand for old cryptocurrencies linked to DeFi. The Ethereum blockchain is home to the most decentralized finance platforms. As the Decentralized Finance business grew in popularity last year, the need for Ethereum, the main currency, increased.

Even though BTC made a lot more money, ETH made more money than it did. The total interest income in the world was $76.3B to $74.7B. The Chainalysis group believes this represents a higher need for ETH due to Decentralized Finance’s ascent last year.

Another noteworthy trend identified by the analysis is that the cryptocurrency sector continued to acquire traction last year after gaining pace in 2020. In 2021, investors worldwide made cumulative profits of $162.7B throughout all investments tracked by Chainalysis, far above the $32.5B forecast for 2020.

Furthermore, United States investors reaped the most benefits, with an expected $47B in profits. China ($5.1B), Germany ($5.8B), the United Kingdom ($8.1B), and Japan ($5.5B) follow the United States. On the other hand, Ukraine, Turkey, the Czech Republic, Venezuela, and Vietnam were hailed as having done admirably. The rising countries’ gains ranked higher than their gross domestic product ranks.