– The price of Ethereum’s native token, Ether (ETH), has gained around 35% in 2023 but has struggled to break above the psychological resistance level of $2,000.
– Ethereum’s inability to cross above $2,000 resembles a bearish rejection pattern seen in 2018-2019 near $425, indicating a potential bear cycle fractal.
– The stronger U.S. dollar and the ongoing hype around spot Bitcoin ETFs have dampened demand for Ethereum, leading to underperformance compared to Bitcoin.
– Ethereum network activity has dipped, with a decrease in total value locked (TVL) and a drop in gas fees, indicating reduced availability of funds and lower yields for investors.
– Ethereum’s NFT volumes and unique active wallets have also dropped, suggesting a decline in user activity and engagement with popular apps on the Ethereum network.
– Technical analysis shows a potential rebound toward the 50-day exponential moving average (50-day EMA) near $1,665, but a bearish continuation pattern called an ascending triangle indicates a potential price crash if the lower trendline is broken.
– In the short term, a break above the 50-day EMA could lead to a rise toward the upper trendline of the ascending triangle near $1,730 in October 2023.
