Ethereum (ETH)News

Ethereum Faces Resistance Since Its Upward Movement

In the past few days, ETH still struggles to record notable gains linked to market bears’ action. The digital asset has some substantial resistance levels ahead around $1500, $1600, and $1700, being the marks with the strongest resistance. The support level holds at $1000, $900, and $800. The digital asset, which recently peaked at $1,439, being its highest reach since two years ago, faces new resistance.

ETH’s performance is astonishing as it exceeds over 60% gain, which records higher than Bitcoin’s. Like most digital assets, ETH met a discouraging correction weeks ago that knocked out some hundreds from its worth before it gradually gained and peaked above the $1400 range. Although things are looking perfect for ETH, experts predict the asset is facing new challenges as its price fluctuates.

Current Ethereum Situation

The breaking of its 9-day moving average helped the asset accumulate some gains amidst the increasing selling pressure. Despite its short-term recovery, ETH shows some signs of struggle overcoming the upper $1,200 level.

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Additionally, some days before its new rally, the digital moved towards the $1000 range, alarming investors who understand that moving below $1000 would introduce another set of resistance to overcome within that range.

Fortunately, the current 9-day moving average signals new bullish momentum forming, which successfully drives the price up, even with the bearish market. The bulls have to move strongly because a bearish recovery could be disastrous for the digital asset and return it to below $1,000.

The technical indicators also show that the price would surge with bull runs, while new resistance will form around within $1500 and beyond. Based on charts, the digital asset would likely move upward if the bulls continue to protect it against bear action.

Unlike ETH, Bitcoin declined significantly from its all-time linked to the continuous bear action that dragged the price to the $28,000 range, before it sharply moved to the $33,000 mark, where it currently stays.

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Ethereum’s movement to the $2,000 mark

The digital asset is definitely on a mission to attaining the $2,000 range, as seen during the first days of January. Some factors might push the asset into actualizing that prediction, the first being the launching of the CME ETH futures next month, already creating anticipation amongst holders. The exchange made pronouncements concerning its ETH addition late last year.

The announcement made experts see ETH action changing based on new volumes. The Chicago Mercantile Exchange explained that its current challenge now is getting approval from the appropriate body, after which the firm would launch the futures.

Another factor that would promote ETH’s use is the change from its previous proof-of-work to the proof-of-stake mechanism. The digital asset firm explained that scalability and other issues necessitated the digital asset’s move to the new platform.

With the new mechanism, the platform would be faster and more efficient, thereby helping customers enjoy a greater user experience as it undergoes around four phases before its full transition. The latest phase, phase 0, launched in early December.

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Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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