Ethereum Price Up by 1.90% – Time to Buy ETH Coin?
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- Cons like SUSHI gained 67%, NEAR gained 57.8%, FTM rose by 49.6%, and ROSE increased by 48% over the same time frame.
- Ethereum has bounced off the support level of $3,600 and is heading north to complete a 23.6% Fibonacci retracement at $3,720.
- Unfortunately, Ethereum could not maintain its price above the $3,880 and $3,850 support levels.
On Thursday, Ethereum bounced off above the $3,600 support zone. It’s now heading north to complete a 23.6% Fibonacci retracement at $3,720 levels. The day before, the ETH/USD pair closed at $3,627.17 after reaching a high of $3,826.10 and a low of $3,607.76.
The ETH/USD continued its bearish momentum and declined to its lowest since mid-October for the fourth consecutive session. Ethereum has been continuously falling for 4-days, and in the past seven days, ETH has dropped by 6.2%. While the leading cryptocurrencies were declining in value, other alternative crypto assets were gaining.
With growing interest in blockchain and crypto as a whole, this might be a good opportunity to buy Ethereum and rise with the market.
Ethereum is on a downtrend despite a surge in altcoins.
According to a recent study, last week was not good for BTC and ETH. However, other alternative coins, mainly 18 coins, gained significant strength in the same period. Cons like SUSHI gained 67%, NEAR gained 57.8%, FTM rose by 49.6%, and ROSE increased by 48% over the same time frame. Furthermore, Convex Finance, AAVE, THETA, Uniswap, osmosis, Kadena, Iota, and the Sandbox also posted two-digit gains in the course of last week, while the leading cryptos were declining in value. The rising competition and adoption of alternative coins could also be a reason behind the weakness of BTC and ETH lately.
Ethereum vs. Solana and Cardano
Despite the rising prices of all these alternative coins, the two primary competitors of Ethereum are Solana and Cardano, which are taking over its position anytime soon. Solana’s value has increased by more than 17,500% in 2021 alone, and it has outperformed many other cryptocurrencies, posing the most serious competition to Ethereum in terms of smart contract capabilities by being faster and more efficient than competitors.the other hand, Cardano is also one of the direct competitors of Ethereum, which developers are adopting due to its grand vision for the future. The rising competition and the increasing number of Ethereum killers have been driving ETH/USD prices to the downside in recent days without any positive fundamentals.
On the flip side, Ethereum users who have paid more than $1559 in Ether gas fees before December 26 are set to receive Gas DAO airdrop tokens. People who have not spent $1559 in ETH fees will be informed by the application that they are ineligible for a GAS token claim. However, on Wednesday, the news could not prompt any return to ETH/USD prices.
Daily Technical Levels
Support Resistance
3547.92 3766.26
3468.67 3905.35
3329.58 3984.60
Pivot Point: 3687.01
Ethereum technical outlook – Buckle up for retracement until $3,800
Unfortunately, Ethereum could not maintain its price above the $3,880 and $3,850 support levels. ETH continued to fall and traded below the critical $3,750 support level. The price fell sharply below $3,700 and settled below the 100 hourly simple moving average. It has fallen as low as $3,602 and is now consolidating losses. On the upside, the $3,655 level represents an immediate resistance. Its price is close to the 23.6 percent Fib retracement level of the recent drop from the $3,827 swing high to the $3,602 low. The next significant resistance level is around $3,715 USD.
On the hourly chart of ETH/USD, a major downward trend line with resistance near $3,715 has also been formed. The trend line is at the 50% Fib retracement level of the recent slide from the $3,827 swing high to the $3,602 low. The price needs to break through the $3,715 barrier level to begin a decent recovery. The price could move towards $3,850 or the 100 hourly simple moving average in the aforementioned scenario. Any additional gains might push the ETH price up to the $4,000 mark.
More ETH downturns?
If Ethereum fails to break through the $3,715 resistance mark, it may continue to fall. On the downside, an initial support level is near $3,600, or the current low. The first significant support is currently building at $3,550 and $3,500. A breach below the $3,550 and $3,500 levels might put the bulls under a lot of pressure. In the aforementioned scenario, the price could fall towards the $3,200 support zone in the near term.
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