Ethereum price is still consolidating mode as the recent spectacular rally fades. The ETH token is trading at $3,175, which is slightly below this week’s high of $3,355, bringing its total market capitalization to more than $372 billion. On the other hand, the Polygon price is currently at $1.4925, which is about 14% below the highest level this week.
Ethereum has a relatively close relationship with Polygon. For starters, Ethereum is a blockchain project that is the foundation of most cryptocurrencies and DeFi projects that you know. Examples of projects built on Ethereum are Aave, Curve Finance, and Maker.
However, Ethereum has its challenges, including its higher transaction costs and low interoperability. This is where Polygon comes in. Polygon, formerly known as MATIC, is a blockchain project that enables Ethereum developers to optimize their projects. Already, almost 400 projects have been launched in the platform. Some of the most popular projects in the ecosystem are Aave and Curve Finance.
The Polygon price has been in a strong bullish trend in the past few days. The coin rose by more than 140% from the lowest level since July. On the four-hour chart, the coin has moved above the 25-day and 15-day exponential moving averages (EMA).
The price is slightly above the lower side of the ascending channel pattern while the two lines of the MACD have moved below the neutral level.
Therefore, at this point, the outlook of the MATIC price is neutral. A drop below the lower side of this channel will be a sign that bears have prevailed. As a result, it will point to more weakness, with the initial reference point being at $1.2650. The alternative scenario is where the price bounces back to the upper side of the channel at around $1.700.
The four-hour chart shows that the ETH price has been in an upward trend recently. However, like Polygon, the coin has made a small ascending channel. It is slightly above the 23.6% Fibonacci retracement level. Also, the price is slightly below the 25-day and 15-day moving averages while the MACD indicator gas also formed a bearish divergence pattern. Therefore, the outlook is neutral with a bullish bias. The key levels to watch will be $3,000 and $3,355.