Blockchain

MicroStrategy has become one of the top gainers of the recent Bitcoin bullish trend, and the analytics provider has secured billions in gains after disregarding naysayers to make a long-running bet on Bitcoin.

MicroStrategy Massive Bitcoin Bet Hits Gold

Leading provider of enterprise analytics and mobility software, MicroStrategy is riding the early wave of the anticipated Bitcoin bull run. The analytics provider has seen the profit on its billion-dollar BTC bet rise to $2 billion following Bitcoin’s rise from below $38,000 during the weekend to over $41,000 this week. 

According to Simply Bitcoin, an X (formerly Twitter) handle, Michael Saylor, the former CEO and Executive Chairman of MicroStrategy has revealed approximately 174,530 BTC in the company’s BTC portfolio. This makes the business intelligence company presently the largest corporate Bitcoin holder globally. 

Around late November, Saylor announced that the company had purchased another $593.3 million worth of Bitcoin at an average price of $36,785 per BTC. Due to Bitcoin skyrocketing to $41,000 highs this week, the company has made profits of $11,460 per Bitcoin with an average price of $30,252 on its massive Bitcoin stash.

Not only has the company gained massively from its large-scale Bitcoin investment, but MicroStrategy’s stocks (MSTR) went up by 8.2% following its purchase in November. MSTR shares were trading over 4% higher on Monday and its present market cap has hit $8.18 billion. The shares are up by 6.74% at the time of writing and with Bitcoin still maintaining its positive sentiment, there may be additional gains in the future. 

Bitcoin Claims 10th Spot In Global Asset Market Cap

Following its spike to $41,000, Bitcoin’s rank in the top global assets market capitalization went up significantly, surpassing the formidable Berkshire Hathaway, an American multinational conglomerate, led by billionaire investor Warren Buffet. 

According to Companies Market Cap data, Berkshire Hathaway’s market cap at the time of writing is approximately $776.75 billion and down by 0.11%. In contrast, Bitcoin’s market cap is up by 0.43% and has surged to $816.30 billion. 

The cryptocurrency is a few billion away from surpassing Meta Platforms (Facebook), which has a market cap of $822.40 billion and is ranked at the 9th position on the top asset market cap list.

Bitcoin presently ranks as the 10th top asset by market cap in the world. The cryptocurrency has seen its price spike triggered by a myriad of factors including the potential approval of Spot Bitcoin ETFs, the hopeful sentiment surrounding US rate hikes by the Federal Reserve, and the upcoming Bitcoin halving in 2024.

Bitcoin (BTC), the world’s leading cryptocurrency, has recently witnessed a surge in price, reaching a new yearly high of $42,100 on Monday. However, this significant price increase has raised concerns among market participants about the possibility of a potential correction and a subsequent liquidation sweep, which could drive the price down to as low as $25,000.

Second Capitulation And Liquidity Sweep For Bitcoin?

Justin Bennett, a prominent technical analysis expert, acknowledges the remarkable performance of Bitcoin, stating, “It’s been a hell of a run from BTC, and it may very well continue without a significant correction in the short term.” 

However, Bennett highlights that the previous two bear markets concluded with a second capitulation, suggesting the possibility of a similar scenario occurring this time. Bennet cautions against ruling out a liquidity sweep that could drive the price down to $25,000.

To provide further context, liquidity sweep refers to a sudden and drastic move in price that aims to clear out excess leverage and trigger liquidations of overleveraged positions. 

Such a move could lead to a cascading effect, causing the price to drop further as more positions get forcefully closed. The occurrence of a liquidity sweep at the $25,000 level would not only test the resilience of Bitcoin but also serve as a crucial moment for market sentiment.

As seen in the 2-week chart above shared by Bennet, despite the potential correction in BTC, this could be the last difficulty that Bitcoin bulls experience before the continuation of the bull run; this will be further fueled by the potential approval of Bitcoin spot exchange-traded funds (ETFs) applications by the US Securities and Exchange Commission (SEC), which is expected to push prices even higher. 

A boost from the halving of Bitcoin will further add to the bullish momentum and sentiment in the market, which could push the price of BTC to new all-time highs (ATH).

Additionally, historical trends indicate a promising outlook for Bitcoin. Analyst Ali Martinez points out that in the past, strong BTC performance during October and November has been followed by a bullish December. According to Martinez, market participants can anticipate a bullish December ahead if this pattern holds. 

El Salvador’s BTC Investments Prove Profitable

El Salvador’s President Nayib Bukele recently announced that the nation’s investments in Bitcoin have yielded significant profits, refuting previous claims of losses made by critics. 

President Bukele revealed that if El Salvador were to sell its Bitcoin holdings at the current market price, the country would not only fully recover its initial investment but also make a profit of $3,620,277.13.

Addressing the numerous articles and hit pieces that had ridiculed El Salvador’s Bitcoin investment strategy, President Bukele emphasized that these assessments were based on the cryptocurrency’s market price at the time of evaluation. With Bitcoin’s recent surge in value, the country’s investment has turned profitable.

While acknowledging that the price of Bitcoin will continue to fluctuate, President Bukele reaffirmed that El Salvador remains committed to its long-term strategy and has no intention of selling its Bitcoin holdings. President Bukele stated: 

Of course, we have no intention of selling; that has never been our objective. We are fully aware that the price will continue to fluctuate in the future, this doesn’t affect our long-term strategy.

At the time of writing, BTC is trading at $41,200, reflecting a notable price increase of 3.8% over the past 24 hours and 12% over the past seven days.

Featured image from Shutterstock, chart from TradingView.com 

The Shiba Inu community burn initiative may have just set a new record with the number of tokens burned in the last 24 hours. The community will undoubtedly be brimming with optimism as to the promising future of the meme coin and its ecosystem. 

Over 8 Billion Shiba Inu Burned In The Last 24 Hours

According to data from the burn tracking website Shibburn, over 8 billion Shiba Inu tokens have been burned in the last 24 hours. As a result of this record, the burn rate jumped by 7424294.41%. Interestingly, one transaction accounted for the bulk of the tokens burned, with 8,241,856,589 SHIB transferred to a dead wallet.

This development continues a recent trend that has SHIB’s burn rate continuing to spike. Sometime last week, the token’s burn rate rose by 499,416% in a single day, with over 264.2 million SHIB tokens burned. This came after 2.7 million SHIB tokens had just been burned the previous day. 

Related Reading: Bitcoin Cycle Analysis And Macro Factors Reveal When Price Will Reach $125,000

Meanwhile, the single transaction that led to 8.2 billion SHIB tokens being burned was due to the spike in network activity on Shibarium. Shiba Inu’s developer, Kaal Dhairya, noted in an X post that the layer-2 network experienced a continuous rise in gas fees, which led to exponential growth in the burn rate. 

Shibarium’s Role In SHIB’s Burn Rate

Shibarium’s significant role in the Shiba Inu burn rate has become evident. Notably, the Shibarium allocates a portion (70%) of the network’s base fees for SHIB burns. The spike in SHIB’s burn rate is expected to be on the rise even as Shibarium continues to enjoy greater adoption. Shiba Inu’s Marketing Lead, Lucie, had once urged the community to use Shibarium so that more SHIB could be burned. 

SHIB community members seem to be now heeding her advice as the number of transactions on the network has skyrocketed recently. The layer-2 network is reported to have witnessed a transaction count spike of more than 47,000% in less than a week. In that period, Shibarium has surpassed the milestones of 5 million, 10 million, and 20 million in rapid succession.

Shibarium doesn’t seem to be slowing down anytime soon, as the total transaction count currently stands at over 35 million at the time of writing. The SHIB community will be hoping that this run continues as it is undoubtedly bullish for the meme coin’s price. 

In an update posted on the Shib Blog, the correlation between Shibaroum’s transaction volume, gas fees, and Shiba Inu burns was resounded. The author noted that the burn rate would continue to grow exponentially as Shibarium experiences an increase in the number of transactions and a significant increase in gas fees. 

Popular blockchain project Shiba Inu has revealed a new era of token burns for its Ethereum-based layer 2 blockchain solution, Shibarium.

Shiba Inu Unveils Latest Burning Mechanism

On Monday, December 4, Shiba Inu announced a fresh set of burning techniques to increase the ecosystem token’s value. According to the announcement, the team described the new mechanism as a “transformative” move, crucial for the network’s economic model. 

The purpose of this technique is to intentionally reduce the token supply in order to increase the value of SHIB and its ecosystem. The announcement read:

Shibarium is introducing a transformative token burning mechanism, crucial for the network’s economic model. This mechanism is designed to reduce token supply strategically, potentially increasing the token’s value and benefiting its ecosystem.

The burn mechanism has been divided into two distinct phases. These include the Manual phase and the Automated Transition phase.

The Manual phase will see the token burn managed by the official deployer wallet. This makes it possible to observe and adjust closely to ensure alignment with the network’s sustainability and health. 

Several changes will be made during the Automated Transition phase to improve dependability and efficiency. According to the Shiba Inu team, the previous mechanism will transit into an automated system.

The burn process for this phase will function according to predetermined guidelines, making it more transparent and efficient. However, this automated aspect is expected to begin in January next year.

So far, the first-ever token burn performed by the Shiba Inu team saw about 8.2 billion SHIB tokens burned, valued at approximately $76,000. The team will keep burning tokens manually using its deployer wallet to represent user engagement on Shibarium.

Shiba Inu’s latest Shibarium burn mechanism underscores a “major milestone” for the network’s development, according to the official blog post. Shibarium is establishing a standard in blockchain token economics by coordinating token burning with network utilization and constantly improving the procedure through updates.

Shibarium’s Transactions Increases Significantly

Lately, Shibarium has seen a surge in transactions and a sharp increase in gas fees by up to 1,000%. Due to this, the token burning has increased exponentially. This is because an increase in the network’s usage leads to more tokens getting burned.

Shibarium has grown purposefully to surpass its best since its introduction in early August. Several weeks ago, there were only a few thousand transactions each day, but today, there are on average 7 million. 

According to data from Shibarium Explorer, that number is currently at 7.82 million. The total number of transactions has also increased lately, totaling 36,730,230 as of the time of writing.

In crypto trading, history often repeats itself, or at least rhymes. That’s why it can be crucial to spot historically important price signals and patterns. A recent technical analysis by Egrag Crypto has spotlighted such a pattern for XRP, indicating a possible massive price increase.

This analysis hinges on the observation of a bullish crossover between the 21 Exponential Moving Average (21 EMA) and the 55 Moving Average (55 MA) in the 2-week chart of XRP/USD. Egrag states, “XRP Rockets: 21 EMA & 55 MA Signal Explosion: Let’s decode the XRP trajectory – my focus? Just two pivotal weekly candles after the crossover between 21 EMA & 55MA.”

Will The XRP Price Soar To $7?

The chart provided by Egrag Crypto highlights the XRP price movements in the two distinct scenarios when this rare bullish signal occurred. The first bullish crossover of the 21 EMA and 55 MA in the 2-week chart occurred in March 2017 (scenario A). Following this signal, the XRP price saw “two striking 2-week candles. The initial one surged by around 90%, trailed by an electrifying 1100% spike,” Egrag remarked.

For the second time in the history of the XRP price, the signal flashed at the end of December 2020. This time, the XRP rose by 100% in the first candle, succeeded by an 84% surge in the second 2-week candle which marked a collective 200% upswing.

According to the crypto analyst, there’s a high probability that these scenarios will repeat themselves. “Drawing parallels from past bullish runs, my opinion syncs with historical data,” Egrag remarked.

Notably, the chart of Egrag also features an ascending trend line, a bullish indicator, which XRP has tested twice, as shown by the two green circles in mid-2022 and early 2023. These taps on the trend line are critical, as they suggest that each touch is a test of support where the price finds enough buyers to begin a new upward movement.

The analyst speculates that XRP could dip slightly more to tap the ascending trend line a third time, which could be a precursor to a significant price rally. This potential third tap on the trend line is viewed as a buying opportunity that could precede a considerable price surge.

Following this third retest of the trend line, Egrag expects two possible scenarios based on the bullish crossover of the 21 EMA and 55 MA. In scenario A, the crypto analyst envisions a dramatic rise in the XRP price, projecting a target of $7.00, which would represent a staggering increase of 1,139.35% from the current price.

Scenario B suggests a more conservative target of $1.80, which would still be an impressive gain of 218.82%. The “No Return Zone,” marked in red at the $1.80 level, is set just above scenario B’s target. It indicates a critical threshold that could either act as a resistance zone or confirm a strong bullish momentum if the price sustains above it.

Broader Market Forces

The crypto analyst is also aware that the Bitcoin price traditionally plays a major role for altcoins such as XRP. He therefore notes on the current market conditions, “eyes fixed on BTC as the majority anticipates a $48K-$50K peak, potentially followed by a pullback, igniting a widespread alt season. Yet, what’s intriguing? A scenario where BTC skyrockets to ATH, retraces, and unleashes a truly wild alt season.”

The analyst’s perspective leans towards an initial spike to between $7 to $10, followed by a significant retracement, and then an even more substantial rise to the levels of $20 to $30. On being queried about the extent of the expected retracement from the $7-$10 range, Egrag Crypto answered an “aggressive $1.3-1.5” drawdown.

At press time, XRP traded at $0.61095.

Crypto investment products have experienced another week of inflows, bringing the run to 10 consecutive weeks. According to CoinShares’ latest report on digital asset investment funds, inflows into crypto products totaled $176 million last week, bringing the total inflow in 10 weeks to $1.76 billion. The timing is not a coincidence, as most cryptocurrencies turned green again last week in terms of price action.

Total Crypto Inflows Hit $1.76 Billion In 10 Weeks

After a lackluster action for most of the year and some weeks of net outflows, the most recent data shows smart money investors are betting big on crypto again. Investments in digital asset funds have been on the rise for the past two months, ignited by the crypto market bull run which started in the middle of October. As a result, the inflows have ballooned every week, breaking levels not seen since 2021’s crypto market bull run. 

Digital asset investment funds ended November with an inflow of $176 million, although down from the $346 million registered in the week before. Most of the money last week went into Bitcoin, with the cryptocurrency seeing $133 million in inflows. 

Bitcoin remains the most popular digital asset for institutions, and interest has really piqued with the applications of spot Bitcoin ETFs in the US waiting for approval from regulators. As a result, the crypto has strengthened since October, breaking various price levels and resistances, the latest being the $42,000 price level.

The sentiment has also flowed into the altcoin market. Ethereum saw inflows of $31 million last week, bringing its 5-week inflow run to a total of $134 million. Multi-asset investment products that provide exposure to a basket of crypto assets saw $2.3 million in new investment. 

Solana and XRP saw inflows of $4.3 million and $0.5 million respectively. On the other hand, Litecoin saw outflows of $0.2 million, and Short Bitcoin products saw $3.6 million inflows after three consecutive weeks of outflows. 

Most of the inflows came in from Canada, Germany, and the US, which saw inflows of $79 million, $57 million, and $54 million respectively. Australia and Sweden also saw outflows of $0.5 million and $0.2 million respectively. However, the overall trend shows institutions are still bullish on crypto in the long run.

It’s exciting to see such numbers again, as they are reminiscent of past bullish sentiment in the crypto industry. According to CoinShares, this run of inflows is now the largest since October 2021, which saw the launch of the futures-based ETF in the US. 

Assets under management have also risen by 107% this year and are now at $46.2 billion, but still below the $86.6 billion seen in 2021. However, this record is ready to be overtaken in the coming year, as the latest data provides further evidence that institutional interest in the crypto market will continue for a while.

Several on-chain metrtics demonstrate the growing optimism about Cardano (ADA). Concurrently, the cryptocurrency has managed to break through a significant resistance level against the backdrop of a bullish market attitude.

Not only is Cardano seeing a boost in momentum, but top altcoins are also feeling the effects. Strong positions held by Bitcoin and Ethereum above $40,000 and $2,200, respectively, add to the overall favorable market dynamics.

Cardano Network Transactions Rise

Cardano has been steadily rising, and expert cryptocurrency trader Ali Martinez pointed out that the cryptocurrency’s consolidation in the middle of November resembled that of the 2018–2022 phase. This suggests that Cardano may overcome the $0.45 resistance and reach $0.75 by the end of December.

Cardano has had a pivotal three months, and what’s to come could be even more so. This is due to the fact that the network has seen numerous transactions totaling more over $100,000. Martinez claims that the spike in transactions indicates a rise in institutional interest in ADA.

#Cardano | In the last three months, there’s been a significant increase in $ADA transactions over $100,000, reaching new highs consistently.

This surge points to growing interest in #ADA from institutional players and whales, which is usually a precursor to price spikes. pic.twitter.com/APczM2PGxM

— Ali (@ali_charts) December 4, 2023

Meanwhile, there’s another interesting development happening of late. According to the most recent data, once Bitcoin broke above the $41,000 mark, there was a bullish rebound that saw the percentage of lucrative Cardano addresses rise to a two-year high of 42%, or roughly 1.76 million addresses.

Based on IntoTheBlock’s examination, this increase in profitability not only represents a transient spike but also highlights ADA’s long-term potential. This encouraging development contributes to the general sentiment among investors by fostering a sense of assurance and faith in cryptocurrencies.

Whales’ Influence On ADA’s Price And Sentiment

And speaking of sentiment, Martinez emphasized the possible influence on the price of ADA while pointing out that whales have also been participating in the recent large-scale transactions on the Cardano network. The expert noted that actions such as these might be essential to a significant rise in the price of ADA.

The recent announcement of 150 initiatives and the ongoing development of 1,304 projects demonstrate a thriving ecosystem. Another explanation for Cardano’s high transaction growth could be this.

The remarkable production of 9.1 million native tokens demonstrates the wide range of customization possibilities on Cardano. A further demonstration of the versatile utility of Cardano’s asset generation capabilities is the establishment of 81,447 token policies.

At the time of writing, ADA was trading at $0.399, up 2.3% in the last 24 hours, and down 7.1% in the last seven weeks, data by Coingecko shows.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

North Rock Digital, a player in the digital assets hedge fund arena, recently made a bold prediction regarding the altcoin Stacks (STX). In a statement released on X, the fund highlighted its investment strategy and reasoning for STX being the best altcoin to long at the moment.

“When looking for long ideas, we target those with strong fundamentals, supportive tokenomics, and significant upcoming catalysts. STX stands out with the most compelling catalyst path over the next few months and the greatest chance to rerate,” the fund stated.

In-Depth Analysis Of Stacks’ Prospects

North Rock Digital’s full thesis, published on Medium, delves into the details underpinning their positive outlook on STX. The thesis asserts, “Key developments have brought our initial STX thesis into further focus […] demand for Bitcoin block-space has solidified, increasing the demand for the product STX is building.”

Significant is the Nakamoto upgrade, scheduled before the Bitcoin halving in April. This upgrade is seen as a pivotal moment for STX, promising dramatic improvements in speed and efficiency, including 5-second block times and support for sBTC, a secure version of wrapped Bitcoin. This development, according to North Rock Digital, positions STX closer to being a true Bitcoin L2.

The hedge fund also points out the broader context within the Bitcoin ecosystem that favors STX. The rising demand for Bitcoin’s block space, notably with a 50x spike in network average gas fees this year, alongside the development of Ordinals, indicates a growing interest in utilizing Bitcoin beyond just a store of value. These developments, coupled with the anticipated US spot Bitcoin ETF approval, are expected to boost the demand for STX’s offerings.

Furthermore, STX has been somewhat overlooked recently, providing what North Rock Digital sees as a unique investment opportunity. “Despite these positive developments, attention on STX has declined […] leaving us with a unique opportunity,” the thesis elaborates. Notably, the Stacks developer team’s progress towards the Nakamoto upgrade is on track, with the Mockamoto milestone already completed.

The fund also emphasizes Stacks’ international partnerships and upcoming initiatives. These include the launch of a marketing campaign in Asia and the roll-out of the second Nakamoto testnet by January. “Stacks is expanding their footprint globally… They will run a marketing campaign to raise awareness for Bitcoin L2s in the first quarter of ’24 with a focus in South Korea, Singapore, Hong Kong and Dubai,” the fund explains.

“Stacks is expanding their footprint globally… They will run a marketing campaign to raise awareness for Bitcoin L2s in the first quarter of ’24 with a focus in South Korea, Singapore, Hong Kong and Dubai,” the hedge fund explained. Moreover, the introduction of new Bitcoin L1 tools like BitVM is also seen as a significant step towards realizing a true Bitcoin L2 vision without needing changes to Bitcoin L1.

STX Valuation

In terms of valuation, STX is currently seen as undervalued, especially when compared to other L1/L2 ecosystems. With the Nakamoto upgrade and the proximity to the next BTC halving, STX is expected to narrow its valuation discount relative to other assets, North Rock Digital claims.

Post-Nakamoto, STX is anticipated to enable a range of applications, including a performant BTC-denominated NFT marketplace and traditional DeFi applications. The potential for these applications, combined with the strong BTC-centric community of STX, presents a compelling case for its future growth.

At press time, STX stood near its yearly high and was trading at $1.15.

The value of ORDI has increased significantly during the last week, more than tripling, following an astonishing climb. This noteworthy increase aligns with the upward trend of Bitcoin’s value, adding to the cryptocurrency’s recent surge in popularity.

A remarkable occurrence was the overnight rise of ORDI to an unprecedented all-time high, which injected excitement into its recent performance.

Based on the Ordinals protocol of Bitcoin, the token is by far the largest BRC-20 asset. It reached a new peak price of $49.05 today, according to CoinGecko data, after rising 16.3% over the previous day and an astounding 148% over the previous seven days. The fact that ORDI has increased by more than 500% during the past 30 days is similarly astounding.

ORDI Surges: Technicals Mirror Bitcoin’s Bull Market

The market value of ORDI has increased by more than 380% in the past year. These performance gains have demonstrated a significant relationship with the characteristics of the Bitcoin market, raising the prospect that ORDI may follow Bitcoin’s lead during the bull market.

Furthermore, one important technical indication is to support the optimistic viewpoint. The 4-hour chart’s Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) both show positive movements.

Interestingly, the RSI reached 90.24, indicating an overbought state that can indicate a possible decline in price. On the other hand, the MACD’s bullish momentum suggests that there is still buyer interest and that the price will probably continue to rise.

ORDI has had tremendous growth since its founding as a technical experiment on Bitcoin in early 2023. With a $903 million market capitalization, ORDI is the most valuable cryptocurrency by market valuation, ranking it 63rd overall and first within the BRC-20.

Regarding social dominance, Santiment data indicates that ORDI has had an upward trend.

ORDI Doubles In A Week Alongside Bitcoin’s 20-Month Highs

ORDI’s recent surge, fueled by adoption from major exchanges like Binance and OKX, saw its largest increase in the past week, doubling in price. This coincided with Bitcoin reaching its highest point in 20 months, exceeding $42,000.

Bitcoin’s 20% rise over the past month, currently at around $41,800, further emphasizes the synchronized momentum of both cryptocurrencies since ORDI’s launch.

Thanks in part to increased activity on the Ordinals protocol, market analysts continue to have a positive outlook for ORDI. With a varied content library and over $46 million in total inscriptions as of writing, ORDI’s popularity inside the Bitcoin network has increased in tandem with the rise in transaction fees. It is a crucial component of the network.

Meanwhile, Coincodex predicts a 104% increase to $55.74 during the course of the following year. ORDI would have reached a new all-time high following its most recent breakout, which coincided with price discovery.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

Ethereum price is gaining pace above the $2,200 resistance. ETH is up over 8% and might continue to rise toward the $2,500 resistance in the coming days.

Ethereum is gaining pace and recently surpassed the $2,250 resistance.
The price is trading above $2,200 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support near $2,225 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its rally if it clears the $2,275 resistance zone.

Ethereum Price Follows Bitcoin

Ethereum price started a strong increase above $2,000, like Bitcoin. ETH cleared many hurdles near $2,120 to enter a positive zone. The price even surged above the $2,200 level to set the tone for a larger increase.

A new multi-month high was formed near $2,275 and the price is now consolidating gains. There was a minor move below the 23.6% Fib retracement level of the upward move from the $2,148 swing low to the $2,275 high. However, Ethereum is still trading above $2,200 and the 100-hourly Simple Moving Average.

There is also a key bullish trend line forming with support near $2,225 on the hourly chart of ETH/USD. On the upside, the price is facing resistance near the $2,250 zone.

Source: ETHUSD on TradingView.com

The next key resistance is near the $2,275 level. A clear move above the $2,275 zone could send the price toward the $2,320 level. The next resistance sits at $2,350. Any more gains could start a wave toward the $2,500 level.

Are Dips Limited in ETH?

If Ethereum fails to clear the $2,250 resistance, it could start a downside correction. Initial support on the downside is near the $2,220 level and the trend line.

The next key support is $2,175 or the 76.4% Fib retracement level of the upward move from the $2,148 swing low to the $2,275 high. The main support is now near $2,150 or the 100-hourly Simple Moving Average. A downside break below $2,150 might start a steady decline. The key support is now at $2,080, below which there is a risk of a move toward the $2,020 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $2,175

Major Resistance Level – $2,250