ETH/USD closed at 2079.92 after placing a high of 2084.08 and a low of 1951.83. Ethereum has already tested our previously forecast level and triggered a fresh increase in its prices on Thursday and headed for $2100 that suggested that the coin could try to breach its previous all-time high of $2130 in the coming days. Ether’s recent price action has shaken the crypto market and suggests an official start of the season of altcoins. There is no doubt that Ethereum has been leading the charge in crypto for the past couple of weeks on the back of its nature of being home to popular Defi and NFTs. However, this move-in ETH prices came at a time when the network was facing some significant controversies.
The competition of Ethereum is rising day by day due to its scalability and congestion issues. Some analysts believe that if no solution for effective scalability became available soon, Ethereum might lose its ground to rival smart contract platforms. Still, Ethereum is the undeniable king of altcoins, however second to BITCOIN in market capitalization. The recent Ethereum dominance could be attributed to the increased hype in the NFTs. The rising volumes for NFT sales and auction, especially in the art world and gaming, have enabled digital artists to capitalize on the trend and explore the technology.
Major celebrities like Snoop Dogg, Logan Paul, and sports celebrities from Formula One and the NBA, along with the famous movies studios Warner Bros, almost all sorts of people and companies are exploring NFTs and using them to promote themselves for generating alternative revenue streams. The underlying platform is Ethereum, and that is why Ether prices are rising due to the increased use of NFTs. However, NFTs are not alone in driving the prices of Ethereum higher as their craze seems to be slowing down, and still, Ethereum is moving towards its new ATH.
The craze of DeFi is also playing an essential role in driving Ether prices higher. Just like Bitcoin is serving as a gateway for institutional investors to enter the crypto market, Ethereum allows them to experiment with DeFi. Many venture capitalist firms have already made investments in the DeFi space. The number is expected to grow further, which will help bring liquidity, decline volatility, and rise credibility within the industry. Ethereum is likely to cross its all-time high of $2130 in the coming days due to smart contracts’ increased popularity.
On Friday, ETH/USD is trading choppy around 2,075 level, facing immediate resistance at 2,078 level. Continuation of further upward trend can extend buying trend until 2,150 level. The 20 and 50 periods EMA are supporting bullish trend, and the MACD and RSI are also suggesting buying. However, ETH/USD needs to violate the 2,078 resistance level to exhibit a bullish trend. On the higher side, the next resistance can be found around 2,150 levels. In contrast, the pair may find support at 1,994 and 1,935. Good luck!
// Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst.
Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D.
Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.