ETH/USD closed at $2386.68 after placing a high of $2429.09 and a low of $2279.18. After declining for three consecutive sessions, it surged on Sunday and recovered minor losses from the previous session. The decline in Ethereum prices over the weekend came from many factors, including the shift of PumaPay from Ethereum to Binance Smart Chain (BSC). The DeFi payment protocol company announced its upcoming V3.0 launch and said it would shift to Binance Smart Chain to expand existing protocols and boost payment flexibility. This will be done by introducing a bridge between the two networks, which will enable the utilization of tokens and crypto payments while opening new liquidity pools with automatic swaps.
Meanwhile, the renowned investor Stanley Druckenmiller shared his thoughts on Ethereum and said he was skeptical of whether ETH could hold its position. He said that Ethereum reminds him of Myspace before Facebook and Yahoo before Google. According to him, Bitcoin was a brand as it has been around for 13-14 years and has a finite supply. He thinks that no other currency can beat Bitcoin over the value chain as it has maintained its ground, and it would be very tough to unseat BTC . These comments also added further pressure on ETH/USD over the weekend.
However, on Sunday, ETH/USD recovered some of its losses by reversing its movement after Vitalik Buterin argued that Ethereum’s upcoming transition to a proof-of-stake consensus mechanism would solve the blockchain’s uncontrolled energy consumption that has been incensing critics lately. He added that the shift would reduce the chain’s energy consumption by upwards of 10,000x. Meanwhile, the president of Bianco Research, Jim Bianco, said that since 2017 he owned a basket of cryptocurrencies, including Ethereum, but he does not hold bitcoin. Bianco thinks that Ethereum has a long road ahead, and it will move a lot higher despite the current market slump. These comments also gave some support to the rising prices of ETH/USD on Sunday.The decline in prices over the weekend could also be attributed to the rising prices of the U.S. dollar. The greenback was strong across the board on Friday as the DXY reached 90.44 and dragged the ETH/USD prices towards the downside.
ETH/USD Daily Technical Levels
Support Resistance
2300.87 2450.78
2215.07 2514.89
2150.96 2600.69
Pivot Point: 2364.98
ETH/USD is trading choppy at the 2,371 level, facing resistance at the 2,498 level. On the 4-hour chart, the pair has formed a sideways trading range in between 2,498 – 2,191 level. On the lower side, the support continues to hold around 2,191 level. Bearish crossover of 2,191 level opens up additional room for selling until the next support area of 2,150 and 1,753. The RSI and MACD indicators support the bullish trend in Ethereum. The idea is to stay bullish over 2264.98 areas today to target the 2,498 and 2,898 level. Good luck!