Ethereum price declined sharply on Tuesday, going down by 3.4 percent at the time of writing to trade at $3,260. The decline mirrored that of Bitcoin, which was down by 2.6 percent, tampering with the week-long upbeat market sentiment. Ethereum has gained 36 percent in the last week, outperforming Bitcoin’s 28 percent gain.
Significantly, stability above the $3k mark has provided psychological support for it to stay on the ascending trajectory. Also, while Bitcoin has recorded multiple all-time-highs in the last week, Ethereum is still about 33 percent below its all-time high of $4,878 set three years ago. That is also a potential psychological strength for ETH, as investors will likely be aiming to retest those highs as the crypto market rally gathers pace.
As much as the current crypto rally was triggered by Donald Trump’s election victory, the impact of Bitcoin’s halving event that took place in April is also at play. It has resulted in a reduced supply of BTC coins at a time when demand is rising, and that will likely keep prices soaring. As a result, the upward rally could be in play for a longer time.
Ethereum’s upside is also supported by its DeFi ecosystem. The Ethereum chain DeFi Total Value Locked (TVL) has risen by 3.6 percent in the last 24 hours and stands at $61.41 billion as of this writing. If that trend continues, the demand for ETH will likely stay up, helping prop up the price.
The momentum indicator on Ethereum price favours the downside if resistance remains below the pivot price at 3,239. With the sellers in control, ETH will likely go lower to find the first support at 3,239. However, a stronger downward momentum could break below that level and test 3,220.
Conversely, if the price moves above 3,280, it will put the buyers in control. With that, the first resistance is likely to be at 3,301. However, a stronger momentum could break above that level and render the downside narrative invalid. Also, the price could rise to test the next resistance at 3,320.
This post was last modified on Nov 12, 2024, 13:39 GMT 13:39