- Summary:
- The daily chart shows that Ethereum price is ripe for a breakout after months of consolidation. What is moving the price today?
Ethereum price (ETHUSD) is under pressure as investors reflect on the US monetary and fiscal policies. The digital currency is trading at $338, which is higher than the intraday low of $332. Other digital currencies are also trading lower, with Bitcoin falling by 1.40% and Litecoin declining by 0.55%.
Ethereum has been under pressure in the past few weeks. In this time, the price has reached its 2017 high of $487 and then crashed to the July low of $313.
There are two main reasons for ETH’s weakness. First, the US dollar rose by 2% in September, which is a negative factor for ETH and other assets like bitcoin and gold. This month, however, the dollar has been struggling to find direction.
Second, there have been no major news event in the digital currencies industry. Finally, there are concerns about the Decentralised Finance (DeFi) industry. DeFi is one of the biggest drivers for ETH prices in the past few months. Indeed, the total value locked in the DeFi has jumped to more than $10 billion, according to data by Defipulse.
The DeFi industry has led to high demand for ETH mining services. Indeed, according to Glassnode, the hash rate, or the power consumed to mine one ETH, has risen to an all-time high of 250 terahashes per second. That was 80% higher than what it was in January.
Ethereum price technical analysis
The daily chart shows that Ethereum price has been in an upward trend since March, when it dropped to $90. It is now trading at $338, which is above the ascending trendline that is shown in green. The line touches the lowest level in March, June, July, and September this year.
Also, the price has formed a small triangle pattern and is also below the 25-day and 15-day exponential moving averages. Therefore, even with the current weakness, I believe that the upward trend will remain so long as the price is above the main trendline. The trend will ease when the price falls below $313, which is the 25th of September low.
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