Outside Source
Ethereum has remained stagnant for an extended period of time, leaving the market with uncertainty and full of bearish sentiment. However, the price is consolidating inside a tight range, and a breakout could finally hint at the next move’s direction.
Technical Analysis
By Shayan
The Daily Chart
The price faced resistance at the $2K level and subsequently dropped below a short-term upward trendline. It is now undergoing a pullback to test this same trendline.
Meanwhile, ETH is up against the 100-day moving average, which represents a strong support level positioned at $1781. A significant increase in selling pressure would be necessary in order to push the price below this vital price point.
Presently, ETH is confined within a tight range, roughly between the 100-day moving average at $1781 and the ascending trendline around $1890. A breakout from this range will likely determine the short-term outlook of Ethereum.
The 4-Hour Chart
Zooming in on the 4-hour chart, the dull price action becomes more evident, with small candles indicating a lack of clear direction. During the consolidation phase, Ethereum briefly touched the upper boundary of the descending wedge pattern but was rejected.
On the 4-hour timeframe, three important price zones come into play: the lower threshold of the multi-month ascending channel (indicated by purple lines), the significant level of $1.7K acting as support, along with the upper trendline of the wedge pattern (marked with yellow lines), serving as resistance.
Given the current price action, it is challenging to anticipate Ethereum’s short-term outlook until a breakout occurs.
On-chain Analysis
The ongoing surge in the ‘valid ETH balance in the deposit contract’ serves as a significant testament to the active engagement of validators in Ethereum 2.0. This remarkable transition unfolds with the fundamental assumption that the revolutionary ‘Proof of Stake’ consensus mechanism has already been successfully implemented.
The continuous commitment of validators to stake their ETH in the deposit contract carries profound implications for the future of Ethereum. Beyond its immediate significance in facilitating the Ethereum 2.0 upgrade, this growing staking activity is perceived as an encouraging sign that bolsters optimism regarding the future price trajectory of Ethereum.
In summary, the persistent rise in the ‘valid ETH balance in the deposit contract’ demonstrates how validators actively participate in Ethereum 2.0. Their ongoing staking activity not only supports the network’s transition to Proof of Stake but also boosts confidence in the future of Ethereum.
This article first appeared at CryptoPotato
