Ethereum prices closed at 1683.07 after placing a high of 1784.54 and a low of 1683.07. ETH/USD fell sharply on Monday and extended its losses that dragged the prices to their low since 7th March. Ethereum prices fell below $1700 levels on Monday that was considered to be a strong support level. Analysts had predicted that Ethereum must hold above the $1700 support level to avoid the downside break and regain the $2000 level. The support level was broken, and ETH/USD prices fell to near the $1685 level.

Recently Ethereum has faced fresh declines against the US dollar due to many negative developments. Last week was not so good for Ethereum amid the controversial EIP-1559 upgrade for the network. As this upgrade is expected to burn Ether tokens and decrease the number of Ether in circulation and improve the gas-fees issue, at the same time, it will also cut the revenue of Ether miners who have planned a protest against this upgrade.

Ethereum developers were preparing against the protest that will be a show of force from miners. Simultaneously, a new EIP-3368 proposal also came in that will increase the reward of miners instead of immediately implementing a gas-saving solution. However, the issue is yet to resolve and this has been weighing continuously on the prices of Ethereum.

Furthermore, the NFT craze and the thrust to find alternatives to the Ethereum platform due to its high gas fees have also been weighing on the prices of Ethereum lately. This has even led to the declining number of Ethereum on centralized exchanges to their new lowest levels.

The popularity of its rival Cardano (ADA) this week could also be attributed as a reason for a decline in Ethereum prices. Cardano seems like it is battling Ethereum over platform functionality based on smart contracts these days. Cardano prices rose about 20% last Tuesday in a single day that has weighed heavily on ETH/USD prices.

The main reason behind the big losses on Monday in ETH/USD prices could be the King of cryptocurrency’s declining prices, Bitcoin. BTC/USD fell on Tuesday, although the US Fed Chairman Jerome Powell stated that Bitcoin was a substitute for gold and not for the US dollar. He believed that all cryptocurrencies were a speculative form of investment and they could not replace the dollar, but they have the chance to do so against gold. As Bitcoin is considered a driver of the cryptocurrency market, the decline in its prices can easily manipulate the market trend and drive ETH/USD prices downward. This is what happened in Monday’s trading session.

Daily Technical Levels
Support Resistance
1694.24 1750.71
1615.42 1818.36
1547.77 1852.18
Pivot point: 1716.89

For the moment, the ETH/USD price is showing a bullish recovery and trades at 1,731 level. The second leading crypto pair is likely to find the next resistance around the 1,746 mark and a support level of 1,650. Bullish crossover of 1,746 level can extend buying trend until 1,800 and 1,858 level. The MACD and RSI support buying trends along with the 20 & 50 periods EMA, but the ETH/USD pair may face a solid resistance and selling pressure around 1,750 resistance areas today. Good luck!