Ethereum Price Slips by 0.37% – Time to Buy ETH Coin?
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- The worldwide crypto market capitalization fell 1.38 percent to $2.33 trillion.
- Transaction fees on the Ethereum network have been cut by more than half the rate.
- Ethereum attempted but failed to break above the $4,150 barrier zone.
On Monday, Ethereum is trading sideways between a narrow trading range of 4,140 – 4,020 level. The day before, the ETH/USD was closed at $4061.17 after placing a high of $4103.98 and a low of $4005.01. ETH/USD turned red on Sunday and lost most of its previous session’s gains mainly because of the rising level of competition. Over the last 24 hours, the worldwide crypto market capitalization fell 1.38 percent to $2.33 trillion, while the market trading volume fell 10.77 percent to $74.90 billion.
A layer-two network designed for scaling and application infrastructure development on Ethereum named Polygon has been gaining attention lately. The network’s momentum is growing strong with various developments, including a $1 billion investment into zero-knowledge technology to co-launch a $200 million Web 3.0 social media initiative to integrate with Opera’s web browser to make its decentralized apps accessible to 80 million Android mobile users.
With growing interest in blockchain and crypto as a whole, this might be a good opportunity to buy Ethereum and rise with the market.
Sandeep Nailwal remarks pressures on Ethereum
According to Polygon co-founder Sandeep Nailwal, apart from partnerships and business expansion, the network was attracting much attention from blockchain developers because of its technical capabilities compared to Ethereum. He explained that the average block time at Polygon lies at 2.3 seconds whereas, at Ethereum, it takes 15 seconds. The difference in gas fees is also very high as Polygon charges only a fraction of a penny, and Ethereum is famous for its relatively high gas fees among all cryptocurrencies.
He further stated that many big guys and companies were coming to Polygon network for making their NFTs, including Dolce and Gabbana, Jack Dorsey, Elon Musk, and Mark Cuban. The total NFT sale on the polygon network in 2020 was $340 Million, but in 2021, the total NFT sale reached $9 billion and counting. The rising popularity of Ethereum killers and blockchain developers showing more interest in moving their projects to its competitors have been causing a decline in ETH/USD prices as of late.
Cut in Ethereum’s fee underpins ETH/USD
On the other hand, data suggested that since 46 days, or November 9th, the transaction fees on the Ethereum network have been cut by more than half the rate they were on that day. At that time, the average fee for moving ETH was $62.84 per transaction, and now it has reached $23.34 per transaction. This significant drop in Ethereum gas fees is still very high compared to its competitors, contributing to its decline.
Meanwhile, the Ethereum co-founder Vitalik Buterin is working on a staking mechanism with the Dogecoin Foundation, a non-profit organization behind the meme-based cryptocurrency Dogecoin. The collaboration built a uniquely Doge proposal for a community staking version of Proof of stake.
Daily Technical Levels
Support Resistance
4009.46 4108.43
3957.75 4155.69
3910.49 4207.40
Pivot Point: 4056.72
Ethereum technical outlook – Choppy session in play
Ethereum attempted but failed to break above the $4,150 barrier zone. ETH has begun a downward correction and is currently trading below $4,100. There was a break below the 23.6 percent Fib retracement level of the upward run from the swing low of $3,895 to the high of $4,155. The price fell below $4,050 and the 100 hourly simple moving average. On the other hand, the bulls remained active near the $4,000 level. The 50 percent Fib retracement level of the upward advance from the swing low of $3,895 to the high of $4,155 also served as support. It is now trading above the 100 hourly simple moving average.
On the upside, immediate resistance is near $4,100. On the hourly chart of ETH/USD, a key negative trend line is forming with resistance near $4,100. The next significant resistance is located near $4,155. A clear break over $4,155 would signal the commencement of another significant uptrend in the near term. In the scenario above, the price may jump to $4,250. Any further rises might push the price up to $4,350.
What’s on the bearish side?
If Ethereum fails to start a new uptrend over $4,100, it may fall even deeper. On the downside, the $4,040 level and the 100 hourly SMA provide first support. Near the $4,000 level, the first important support is emerging. A breach below the $4,040 and $4,000 levels on the downside might put much pressure on the bulls. In the scenario above, the price could fall towards the $3,920 support zone in the near term.
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