Ethereum - ETH/USD Chart

Ethereum Retests Trendline Resistance 2,400 – Brace for a Breakout!

Posted Tuesday, July 6, 2021 by
Arslan Butt • 3 min read

The ETH/USD closed at $2,195.73 after placing a high of $2,321.43, and a low of $2,195.73. The ETH/USD reversed its course on Monday, dropping as it followed the trend set by BTC/USD. Despite the good developments surrounding its space, ETH faced pressure in the market and remained depressed on Monday. In the history of crypto space, it was reported that Ethereum addresses overtook Bitcoin addresses for the first time on Monday. This suggests that the altcoin is becoming far more popular and prominent than the leading cryptocurrency.

According to market capitalization, Ethereum is the second-largest cryptocurrency in the world, followed by Bitcoin. But according to data from Bitinfocharts, ETH-based wallet addresses are moving ahead of Bitcoin. The current active addresses of Ethereum amount to 757,859, whereas the addresses of Bitcoin are approximately 50,000. Meanwhile, Ether holders have reportedly staked more than $13 billion worth of the cryptocurrency on the Ethereum 2.0 network, as interest grows. A month earlier, the figure was 5.3 million, and within 30 days, the network users had staked more than 6.1 million in ether. On Monday, the total value of staked ether reached around $13,2 billion.

The Ethereum blockchain, collectively known as Ethereum 2.0, is going through some major changes. The biggest change the upgrade will bring will be a shift from a proof-of-work consensus to a proof-of-stake mechanism. JPMorgan said last week that crypto staking could become a $40 billion industry by 2025, thanks in large part to the changes to the Ethereum network, which will expand the market massively.

Furthermore, Ernest & Young’s attempts to promote secure and private transactions over public blockchains at cheaper costs ended in the release of Nightfall 3. The company announced the news and stated that Nightfall 3 combines zero-knowledge proofs with optimistic rollups to improve transaction efficiency on Ethereum. The zk-rollups are considered one of the layer-two scaling solutions to attain scalability for networks like Ethereum. The announcement also revealed that Nightfall 3’s zk-Optimistic Rollups solution could bring almost 90% in terms of gas fee reductions associated with public ERC-20 token transfers.

Furthermore, a 77-year-old woman in Indiana has reportedly become the latest victim of a cryptocurrency scam. She has lost approximately $12,000 to digital scammers who called her explaining that $500 had been removed from her account through a cyberattack. The woman was provided with a number to call. She was instructed to buy $3500 in Bbitcoin from Coinbase. The man on the other side offered the woman help through the buying process and got access to her smartphone and checking account. After that, a total of $12,300 was removed from her checking account. This news also put added pressure on the BTC/USD on Monday.

On the other hand, the Bitcoin mining company, Marathon Digital Holdings, recently revealed that the company mined about 265.6 Bitcoin in June alone. The total amount for the whole second quarter is 654.3 Bitcoins, out of which 265.6 were mined in a single month only. June’s mining was 17% higher than the mining done in May. Furthermore, a Dubai-based investment company named IBC Group has reportedly announced that it will end its Bitcoin and Ether mining operations in China. The decision came in after China banned the mining of cryptocurrencies in different provinces across the country. IBC Group has major mining facilities in China, and it has plans to distribute its operations to the UAE, Canada, the USA, Kazakhstan, Iceland and various South American countries. Recently, the group relocated its headquarters to Toronto, Canada.

Moreover, Pham Minh Chinh, the Prime Minister of Vietnam, has asked the State Bank of Vietnam to start working on a pilot project for a cryptocurrency. The blockchain-based project is expected to be completed between 2021 and 2023. The PM has taken the initiative as a development strategy towards a digital economy. The Prime Minister has reiterated that digital currency is “an inevitable trend.”

Ethereum - ETH/USD Chart

ETH/USD – Daily Technical Levels

Support             Resistance
2,153.83            2,279.53
2,111.93             2,363.33
2,028.13           2,405.23
Pivot Point:     2,237.63The ETH/USD coin is trading at 2,327, having soared from the 2,283 double bottom level. Ethereum has recently closed a bullish engulfing candle, which supports a strong buying reversal in the ETH/USD. On the lower side, the upward trendline will extend support to the ETH/USD price at the 1,892 level, where a breakout of the 1,892 level could extend the selling trend until levels around 1,695 and 1,433. Let’s keep an eye on 2,415 for a sell. Good luck!

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