Blockchain

The past week has been a triumphant one for Lido DAO, with its LDO token surging an impressive 22%, leaving a sluggish broader crypto market in its dust. This notable feat mirrors the 18% ascent of Ethereum, its underlying blockchain, showcasing a deep synergy between the leading liquid staking platform and its technological foundation.

But the good news doesn’t stop there. A staggering 87% of Lido DAO token holders are reaping the rewards of their investment, according to data from IntoTheBlock. This solid figure underscores the strong performance of LDO, attributed largely to its stellar weekly performance, as the crypto trading analytics platform noted.

Lido Holders Get Good Returns From Their Investment

Following a strong price move by $LDO this week, ~87% of LDO addresses are now in profit. pic.twitter.com/3rLodKvK21

— IntoTheBlock (@intotheblock) January 10, 2024

Furthermore, Lido’s Total Value Locked (TVL), a crucial metric reflecting the amount of cryptocurrency deposited in its protocol, has also ballooned a remarkable 19% in tandem with the price hike.

Analysts attribute LDO’s ascent to a potent cocktail of factors. First and foremost, its symbiotic relationship with Ethereum. As the leading smart contract platform enjoys renewed momentum, projects built on its infrastructure – like Lido – relish the rising tide that lifts all boats.

Furthermore, Lido’s recent bounce back from a critical support level at $2.80 appears to have ignited a bullish fervor. Technical indicators whisper of a potential retest of the $3.60 resistance barrier, suggesting further upward potential.

Adding fuel to the fire is the skyrocketing demand for Ethereum staking. Lido’s user-friendly model allows investors to earn rewards on their ETH without locking them up for extended periods, a flexibility that resonates deeply with yield-hungry crypto enthusiasts. This, coupled with Lido’s robust platform and proven track record, is attracting new users at a steady pace.

Strong TVL Numbers Put Lido In Contention

The surging TVL is a testament to this burgeoning trust. As more users deposit their ETH on Lido, the total value locked in the protocol increases, further validating its platform and potentially attracting even more participants. This positive feedback loop could propel Lido towards solidifying its position as the premier Ethereum staking solution.

However, a note of prudent caution remains. Lido’s recent upswing hasn’t been entirely organic. The absence of major platform-specific developments raises questions about the rally’s long-term sustainability. Additionally, a large token sale earlier triggered a temporary dip, highlighting the potential for volatility.

Technical analysis also suggests that breaking the $3.60 resistance is crucial for continued upward momentum. Failure to do so could lead to a pullback, and investors should be prepared for such a scenario.

Ultimately, while Lido DAO is riding a wave of momentum, fueled by its association with Ethereum, its robust platform, and the ever-growing demand for liquid staking solutions, investors should approach with cautious optimism.

Featured image from Freepik

In a report from the educational tool Essential Cardano, the team behind Input Output Global (IOG) showed some of the latest updates to ship in the ecosystem. From performance to scalability, the network continues to implement improvements.

Cardano has been regaining bullish momentum in the crypto market as the news of the spot Bitcoin Exchange Traded (ETF) fund in the US pushed the sector higher. At the time of writing, ADA’s price trades at $0.5 with a 7% profit in the last week.

Big Updates, Big Things In Store? Cardano Picks Up Bullish Momentum

According to the report from Essential Cardano, the network saw the introduction of a new version of its client, v.8.7.3, by its core technology team. The update addresses an issue with the outbound governor function, causing communication problems across specific nodes and impacting network performance.

On the other hand, the networking and consensus teams implemented an update on the decision logic used by a cluster run by IOG and integrated a new ledger database, respectively. These updates will allow the network to mitigate performance issues.

The report noted that the Lace team fixed a bug in the wallet and services sector that affected the singData method, impacting the visualization of stake pool rewards. The team also fixed issues with reading minting transaction data, stake pool visualization, and transaction signatures.

An official post stated the following regarding a new feature that gave users more freedom to synchronize their wallets:

Using multi-address wallets with Lace just got smoother, with a new simple way to discover and sync new addresses. Ready to make your life easier? Go to ‘Wallet Sync’ in your settings to resync your multi-address wallet and discover new addresses. After all, why shouldn’t we have our wallets and use them, simultaneously?

Cardano Funding, Smart Contracts, And More

On the smart contract side, the Cardano platform, Plutus, received an update to enhance its performance. In addition, the team implemented an update that allows the node to index consensus events and ledger states.

This implementation represents a milestone in the platform’s long-term progress and in its capacity to deploy a queryable node, IOG noted.

As in previous years, the Cardano ecosystem will stay focused on its community and in ways of promoting participation in its governance model. In that sense, the community awaits the release of a “constitution” to be agreed upon and voted by elected delegates.

Furthermore, the fundraising device for the ecosystem, Project Catalyst, will conclude its voter registration. This tool will continue to be a key ecosystem component throughout 2024. The post noted:

Fund11 is progressing through the community review stage, now entering the moderation part where experienced community members help cross-check the output of the reviews. Results of this stage should be known within two weeks.

The improvements have allowed the Cardano ecosystem to grow, deploy new features, and onboard new projects. All of which will be easier to visualize with the new Mithril Explorer.

Meet Mithril Explorer, the gateway to the #Mithril ecosystem.

Identify stake pools pioneers paving the way for the Mithril protocol.

Kudos to our early adopters! @X_StakePool_XSP, @canadastakes1, @sakakibara1JPN, and more.

Explore now: https://t.co/IqFCqpb8qc #Cardano pic.twitter.com/9KsWp6gJly

— Input Output (@InputOutputHK) January 12, 2024

Cover image from Unsplash, chart from Tradingview

Crypto Expert Anthony Sassano has provided a bullish narrative for the Ethereum ecosystem. Based on this, he believes that Ethereum could hit a new all-time high (ATH) this year. The analyst also went as far as predicting what price level ETH could hit in particular. 

ETH Could Rise To As High As $10,000 This Year

Sassano stated that ETH could hit $10,000 if the Ethereum Spot ETF hype were to get “ahead of itself.” These ETFs are believed to be next in line for an approval order by the Securities and Exchange Commission (SEC). That could explain why the crypto expert has handpicked them as the catalyst for this massive increase in ETH’s price. 

Meanwhile, even if the $10,000 price level isn’t attained, Sassano believes that ETH could still rise to as high as $6,000 before the year runs out. Before making these price predictions, he had explained why he was so bullish on the Ethereum ecosystem. According to him, Ethereum is going to gain a lot of interest from institutions because of the yield it affords them. 

Ethereum, being a proof-of-stake network, provides an opportunity for investors to stake their ETH tokens and earn some rewards in return. This institutional interest in Ethereum is going to be further driven by the launch of Ethereum Spot ETFs, Sassano opined. He further suggested these yields will also give Ethereum an edge over Bitcoin. 

Interestingly, crypto analyst Altcoin Daily had before now stated that ETH hitting $10,000 was “programmed.” He alluded to the higher yields on the network as one of the reasons for his assertion. However, unlike Sassano, Altcoin Daily didn’t suggest a timeline for when the crypto token will hit this price level. 

Is The Market’s Attention Turning To Ethereum?

ETH rallied following the SEC’s approval of the Spot Bitcoin ETFs on January 10, while Bitcoin didn’t see much action. That could suggest that the market was already turning its attention to the Ethereum Spot ETFs. It also shows that the Bitcoin market was likely already priced in before the approval came in. 

If that is the case, the second-largest crypto token by market cap could begin to post some major gains ahead of a potential approval of the Ethereum ETFs in May. This would be something similar to what happened with Bitcoin, which resurged on the back of rumors involving the Spot Bitcoin ETFs. 

At the time of writing, ETH is trading at around $2,580, down in the last 24 hours, according to data from CoinMarketCap. 

The long-awaited arrival of a Bitcoin spot ETF in the US has sparked a surge in cryptocurrency prices, with Ethereum Classic leading the charge among altcoins.

After languishing around $20 for months, Ethereum Classic (ETC) has skyrocketed over 50% in the past seven days, currently hovering around $29.45 and just a breath away from reclaiming the $30 mark.

This impressive rally comes amidst a broader market upswing triggered by the Securities and Exchange Commission’s (SEC) historic approval of the Bitcoin Trust ETF on January 10th, 2024.

Ethereum Classic Surge: A Combination Of Factors

ETF-fueled optimism: The approval of the Bitcoin spot ETF signifies increased institutional interest in the crypto market, a development that traditionally benefits the entire ecosystem, including altcoins like ETC.  This optimism is reflected in the strong performance of other major cryptocurrencies, with Ethereum witnessing a 10% climb and briefly hitting a 20-month high above $2,600.

Ethereum Classic’s unique appeal: Compared to its Ethereum counterpart, Ethereum Classic boasts a smaller market cap and lower transaction fees, potentially making it a more attractive option for traders seeking higher returns and cheaper on-chain activity. Its recent network upgrades have also bolstered confidence in its technological capabilities.

Spillover effect and community hype: The Bitcoin ETF approval has undoubtedly fueled a general sense of bullishness across the crypto landscape, influencing investor sentiment towards altcoins with perceived potential. Additionally, the strong community support and active development around Ethereum Classic further contribute to its upward momentum.

ETC Trading Volume Soars

The surge isn’t just limited to price. Ethereum Classic’s trading volume has also soared by a staggering 276% in the past 24 hours, reaching a volume of $1.8 billion.

This increase in trading activity further validates the market’s interest in Ethereum Classic and potentially indicates continued upward pressure on its price.

However, it’s crucial to remember that the crypto market remains highly volatile. While the Bitcoin spot ETF approval and Ethereum Classic’s recent performance are positive indicators, investors should conduct thorough research and consider both the potential benefits and risks before making any investment decisions.

With its strong community, technological advancements, and now, the tailwinds of the Bitcoin ETF approval, Ethereum Classic has positioned itself as a frontrunner in the current altcoin rally.

Whether it can sustain its momentum and break through the $30 barrier remains to be seen, but its recent performance signals a renewed level of enthusiasm for this resilient blockchain project.

Featured image from Shutterstock

The Shiba Inu burn initiative has been one of the most notable developments this week that has gained the interest of the crypto community, witnessing massive surges in its token burn rate in the past few days.

Shiba Inu Burn Rate On The Rise

Data from Shiba Inu burn tracker Shibburn shows that the SHIB burn rate has increased significantly in the past 24 hours. According to the tracking platform, the burn rate has witnessed a 395.43% uptick today, January 12.

The tracker reveals that over 18 million SHIB tokens have been destroyed in the past 24 hours. The rise in burn rate came in light of Shiba Inu experiencing a price rally which has led to the token erasing another zero.

It is noteworthy that three burn transactions were responsible for the rise in burn rate today. Shibburn revealed that the three transactions incinerated a total of 16.56 million SHIB tokens in less than 8 hours.

The first transaction carried out by the wallet address 0x618ffd1cdabee36…3f21272bd7 saw about 7.77 million SHIB tokens being burned. Additionally, another wallet address 0xab782bc7d4a2b30…f8f63ee1bc sent over 3.33 million SHIB to the burn wallet five hours later.

Meanwhile, the third transaction initiated by the wallet address 0xa9d1e08c7793af6…7fb81d3e43 incinerated about 5.46 million SHIB tokens. 

Over the past few days, the Shiba Inu burn rate has been recording major spikes. The development seems to have caused quite a speculative frenzy within the crypto space.

On Tuesday, January 9, the tracking platform recorded an increase in burn rate of over 28,000%. The surge was caused by a burn transaction carried out by the Shiba Inu team.

The team sent a whopping 9.35 billion SHIB tokens valued at $92,553 to the burn address. This marks the highest burn the team has initiated since it started burning SHIB.

SHIB Erases Another Zero Post ETF Approval

The majority of crypto assets are flashing green, signaling a general upturn in the cryptocurrency market. The recent approval of the Bitcoin Spot Exchange-Traded Funds (ETFs) by the SEC is largely considered to be responsible for the upward trend.

Prior to the approval of Bitcoin ETFs, Shiba Inu was trading at a comparatively low value of $0.0000095. However, after the approval, SHIB has witnessed a price increase, allowing the token to shed another zero.

The increase in SHIB price post-ETF has garnered interest from investors and generated speculations over the coin’s potential for long-term growth.

Currently, SHIB is trading at $0.000010, indicating a 0.60% decrease in the past 24 hours. However, the token’s trading volumes appear to be down in the past day by over 12%, according to CoinMarketCap.

Despite a groundbreaking day in the US with the largest Exchange-Traded Fund (ETF) launch for a single asset, the Bitcoin price remained stagnant, hovering around the $46,000 mark. This development has raised questions within the community, particularly in light of the extraordinary trading volume and participation seen in the ETF market.

Record-Breaking ETF Launch

On its first trading day, Bitcoin ETFs saw unprecedented activity. The total volume reached $4.6 billion, distributed among major players such as Grayscale ($2.3 billion), BlackRock ($1 billion), Fidelity ($700 million), ARK 21Shares ($288 million), and Bitwise ($125 million). This event marked over 700,000 individual trades.

Nate Geraci, President of the ETF Store and co-founder of the ETF Institute, remarked, “GBTC had the largest ETF launch by trading volume ever with $2.3 billion… iShares Bitcoin ETF (IBIT) had the 5th largest launch with $1 billion. GBTC obviously had built-in liquidity, but it’s still a record. IBIT’s performance is impressive given it launched the same day as 10 other competitors.”

Bloomberg’s ETF expert Eric Balchunas added, “All told, there were 700,000 individual trades today in and out of the 11 spot ETFs. For context, that is double the number of trades for QQQ (although it sees much bigger $ volume because bigger fish use it). So, there was a lot more grassroots action (versus big seed buys) than I expected, which is good.”

Bitcoin Price Cannot Maintain Its Gains

Despite these impressive figures, the Bitcoin price struggled to surpass the $50,000 threshold. Although BTC briefly touched $49,000, it failed to maintain these gains, dipping to as low as $45,700. At press time, the price settled around $46,000.

Dan Ripoll, managing director at Swan Bitcoin, argued almost everyone expected Bitcoin to either rip, or to sell off on the ETF news, but neither happened. So what’s behind the muted price response?

Ripoll argues that compliance departments at brokerage firms often take “weeks to several months to add new products to their internal ‘approved products list’ for advisors to sell.” Moreover, the expert explained that several large broker-dealers like Vanguard, UBS, Citi and Merrill Lynch have either restricted or disallowed their retail clients to buy any spot Bitcoin ETFs.

A significant point of discussion was Vanguard’s decision to block its customers from buying into the new BTC Spot ETFs, citing that these products “don’t fit with Vanguard’s investment philosophy.” This move by the world’s second-largest asset manager, behind BlackRock, further complicates the landscape for Bitcoin ETF adoption.

“There may be other brokers who blocked these sales as well for ideological reasons. They don’t believe in Bitcoin. I didn’t expect this at all. They’ll lose customers quickly with this strategy,” Ripoll stated.

Matt Dines, Chief Investment Officer at Build Asset Management LLC, added another very important fact that is probably not widely known:

The dollars behind today’s spot ETF volume haven’t even hit the fund portfolio managers’ desks yet. Most create orders behind today’s flows will get cash settled tomorrow morning T+1 … i.e. the capital behind today’s wave hasn’t even started lifting offers in the UTXO market.

Rotation Plays And GBTC Selling

Besides that there are reports of investors rotating out of Bitcoin ETF proxies, like BITO and mining stocks, to redeploy capital into better proxies, such as the new spot ETFs. This shift might have mildly suppressed ETF inflows and could take months to fully materialize.

It is also interesting to note that Grayscale accounted for half of yesterday’s trading volume, much of which could have been sell orders. In the run-up to the spot ETF approval, GBTC was a popular bet among speculators who had taken advantage of the discount of over 40% at times in the hope that this would close with the ETF launch. This is exactly what happened, with GBTC only trading at around -1% yesterday.

Thus, most of the GBTC trading was probably selling. This is supported by the fact that there is probably no point for investors to hold the GBTC with its enormous 1.5% yearly fee when other spot Bitcoin ETF issuers offer 0.25%.

Fred Krueger, a crypto expert, stated, “GBTC volume must be 90% sales. Some of that went into IBIT.” BitMEX Research commented, “The GBTC volume could be mostly selling and outflow. It has been trading at a discount for almost all the trading day, so not likely to be buying.”

In summary, the lack of a significant Bitcoin price surge, despite the record ETF day, can be attributed to a combination of factors including GBTC selling, compliance delays, brokerage restrictions, fund rotations, and ideological stances by major financial institutions.

At press time, BTC traded at $45,893.

Crypto aficionados should have more reasons now to be upbeat. Samson Mow, prominent figurehead and former CSO at Blockstream, has ignited the Bitcoin landscape with a new, audacious prediction for the king of digital currencies.

He envisions a colossal price surge, aptly named the “Omega Candle,” culminating in a staggering $1 million per coin milestone. This prophecy arrives alongside the recent approval of spot Bitcoin exchange-traded funds (ETFs) in the US, sending ripples of excitement through the market.

OMEGA IS COMING. #Bitcoin pic.twitter.com/CrJRkmFCym

— Samson Mow (@Excellion) January 11, 2024

Crypto: The ‘Perfect Storm’ To $1 Million

Mow paints a picture of a “perfect storm” brewing, one fueled by a potent cocktail of bullish catalysts. The approval of spot ETFs by the SEC stands as the centerpiece, paving the way for institutional investors to finally enter the Bitcoin arena with ease.

This, Mow believes, could trigger a wave of advertising campaigns targeting traditional financial markets, drawing even more capital towards the digital gold.

Beyond the immediate impact of ETFs, Mow anticipates a ripple effect across the wider Bitcoin ecosystem. He cites potential nation-state adoption, similar to El Salvador’s pioneering move, as another potential engine for growth.

#Bitcoin ETFs are approved & trading begins soon in the perfect storm.

ETF ad campaigns
Nation-state adoption
The Halving
Veblen Effect
118x Multiplier
Supply Shock
Recursive Demand Shock
Low $BTC supply on exchanges
Max Pain Theory
Renewed QE
FASB

Omega Candles await pic.twitter.com/8YsuW1OtS7

— Samson Mow (@Excellion) January 11, 2024

Additionally, the upcoming fourth Bitcoin halving in April, which reduces the block reward for miners by half, is expected to further tighten supply and exacerbate any pre-existing demand surge.

This confluence of forces, Mow argues, could culminate in the legendary Omega Candle – a dramatic vertical surge represented by a single, elongated green candlestick on price charts. While the term lacks a precise technical definition, it vividly portrays the magnitude of the predicted rise.

Adding fuel to the fire is prominent Bitcoin supporter Max Keiser. He predicts a mass exodus from traditional gold ETFs towards Bitcoin ETFs, lured by the digital asset’s superior performance and faster growth potential.

On Fast Horses & Omega Candles

“Bitcoin is the fastest horse in the race,” Keiser proclaims, echoing billionaire Paul Tudor Jones’s sentiment that Bitcoin offers a more compelling investment proposition than gold.

However, amidst the hype, skepticism remains. Mow’s $1 million target appears fantastical to many, considering Bitcoin’s current price of around $46,000.

The “Omega Candle” itself, lacking any technical basis, is more akin to a metaphor than a concrete indicator.

Additionally, some experts caution against over-exuberance, highlighting the unpredictable nature of the cryptocurrency market and the potential for unforeseen obstacles, such as regulatory roadblocks or market downturns, to derail the projected trajectory.

Ultimately, while Mow’s vision ignites the imagination of Bitcoin enthusiasts, approaching it with a healthy dose of skepticism is crucial.

The “Perfect Storm” may become a legend etched in Bitcoin’s lore, but only time will tell if it illuminates a path to $1 million or merely flickers briefly before fading into the annals of market speculation.

Featured image from Shutterstock

BNB price is holding gains above the $300 pivot level. It is showing positive signs and might rally toward the $350 resistance zone.

BNB price is moving higher above the $300 resistance.
The price is now trading near $310 and the 100 simple moving average (4 hours).
There is a key declining channel or a bullish flag pattern forming with resistance near $325 on the 4-hour chart of the BNB/USD pair (data source from Binance).
The pair might continue to move up if there is a clear move above $315 and $325

BNB Price Aims Higher

After a major increase, BNB price faced resistance near the $340 zone. The price started a downside correction and recently tested the $290 zone. A low was formed near $289, and the price is now attempting a fresh increase, like Bitcoin and Ethereum.

There was a move above the $295 and $300 levels. The bulls pushed the price above the 50% Fib retracement level of the downward move from the $332 swing high to the $289 low. BNB is now trading near $310 and the 100 simple moving average (4 hours).

The current price action is positive and signals more upsides. Immediate resistance is near the $315 level. It is close to the 61.8% Fib retracement level of the downward move from the $332 swing high to the $289 low.

The next resistance sits near the $322 level. There is also a key declining channel or a bullish flag pattern forming with resistance near $325 on the 4-hour chart of the BNB/USD pair. A clear move above the $225 zone could send the price further higher.

Source: BNBUSD on TradingView.com

In the stated case, BNB price could test $340. A close above the $340 resistance might set the pace for a larger increase toward the $350 resistance. Any more gains might call for a test of the $375 level.

Downside Correction?

If BNB fails to clear the $322 resistance, it could start a downside correction. Initial support on the downside is near the $300 level.

The next major support is near the $292 level. The main support sits at $288. If there is a downside break below the $288 support, the price could drop toward the $262 support. Any more losses could initiate a larger decline toward the $250 level.

Technical Indicators

4-Hours MACD – The MACD for BNB/USD is gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for BNB/USD is currently above the 50 level.

Major Support Levels – $300, $292, and $288.

Major Resistance Levels – $315, $322, and $325.

Bitcoin price started another increase above the $46,500 resistance. BTC cleared the $47,800 resistance and spiked toward $48,000 before the bears appeared.

Bitcoin topped near the $49,000 level and corrected gains.
The price is trading above $45,500 and the 100 hourly Simple moving average.
There is a key bullish trend line forming with support near $45,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh decline if there is a move below the $45,600 support zone.

Bitcoin Price Faces Rejection

Bitcoin price attempted a fresh increase above the $46,800 and $47,200 levels. BTC even cleared the $48,000 resistance and spiked toward $49,000. A new multi-week high was formed near $49,000 before the price trimmed all gains.

There was a sharp move below the $47,500 and $47,000 levels. The price even retested the $45,500 support zone. A low was formed near $45,619 and the price is now consolidating losses.

Bitcoin is trading above $45,500 and the 100 hourly Simple moving average. There is also a key bullish trend line forming with support near $45,900 on the hourly chart of the BTC/USD pair. On the upside, immediate resistance is near the $46,400 level and the 23.6% Fib retracement level of the downward move from the $49,000 swing high to the $45,619 low.

The first major resistance is $47,300 or the 50% Fib retracement level of the downward move from the $49,000 swing high to the $45,619 low. A clear move above the $47,300 resistance could send the price toward the $48,200 resistance.

Source: BTCUSD on TradingView.com

The next resistance is now forming near the $49,000 level. A close above the $49,000 level could send the price further higher. The next major resistance sits at $50,000.

More Losses In BTC?

If Bitcoin fails to rise above the $47,300 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $45,900 level and the trend line.

The next major support is $45,500. If there is a move below $45,500, the price could gain bearish momentum. In the stated case, the price could drop toward the $44,450 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $45,900, followed by $45,500.

Major Resistance Levels – $47,300, $48,200, and $49,000.

Ethereum price climbed higher above the $2,600 resistance. ETH outpaced Bitcoin and is holding gains above the $2,580 support zone.

Ethereum extended its increase above the $2,650 resistance zone.
The price is trading above $2,550 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support at $2,590 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a downside correction if there is a move below the $2,580 support.

Ethereum Price Eyes More Upsides

Ethereum price remained in a positive zone above the $2,500 resistance. ETH even outpaced BTC and climbed above the $2,650 resistance zone. A new multi-week high was formed near $2,683 before the price corrected gains.

There was a move below the $2,620 and $2,600 levels. The price tested the 23.6% Fib retracement level of the upward move from the $2,245 swing low to the $2,683 high. There is also a key bullish trend line forming with support at $2,590 on the hourly chart of ETH/USD.

Ethereum is now trading above $2,550 and the 100-hourly Simple Moving Average. If there is a fresh increase, the price might face resistance near the $2,640 level. The next major resistance is now near $2,680. A clear move above the $2,680 level might send ETH toward $2,720. A close above the $2,720 resistance could push the price further into a bullish zone.

Source: ETHUSD on TradingView.com

The next key resistance is near $2,780. If the bulls push Ethereum above $2,780, there could be a rally toward $2,880. Any more gains might send the price toward the $3,000 zone.

Downside Correction in ETH?

If Ethereum fails to clear the $2,680 resistance, it could start a downside correction. Initial support on the downside is near the $2,590 level and the trend line.

The first key support could be the $2,465 zone or the 50% Fib retracement level of the upward move from the $2,245 swing low to the $2,683 high. A downside break below the $2,465 support might send the price further lower. In the stated case, Ether could test the $2,350 support. Any more losses might send the price toward the $2,220 level.

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 – $2,465

Major Resistance Level – $2,680