Ethereum Slips Below Pivot Point $3,031 – What’s Next?

• The decentralized exchange aggregator, 1inch, has announced that its platform will leverage the Layer 2 solution called optimistic rollout.
• CEO Nigel Green has anticipated that Ethereum will outperform Bitcoin in the long term.
• On the technical front, the ETH/USD pair is trading with a selling bias at the 2,997 level.

Good morning fellas,

The ETH/USD closed at $3,015.62 after reaching a high of $3,123.48 and a low of $2,951.66. ETH/USD dropped for the third consecutive session on Wednesday, extending its losses amid the recent depressed  market sentiment regarding cryptocurrencies and the rising strength of the US dollar.

On Wednesday, the decentralized exchange aggregator, 1inch, announced that its platform would leverage the Layer 2 solution called optimistic rollout. The collaboration with Optimism will provide faster transaction speeds and lower gas fees for the users of 1inch. According to Sergej Kunz, co-founder of 1inch, the Optimistic Ethereum was an up-and-coming L2 solution focused on scalability, and the 1inch launch on Optimistic will facilitate a dramatic increase in transaction speed.

The CEO of deVere, Nigel Green, has anticipated that Ethereum will outperform Bitcoin in the long term. The CEO of one of the world’s largest leading financial institutions, who has always been a crypto advocate, has predicted that ETH has the potential to exceed BTC in the future. Green stated that this year was proof enough that Ethereum has been outpacing the performance of Bitcoin, as ETH rose by 240% this year while BTC rose by less than 38%. Green has high expectations that ETH will soon become the leading cryptocurrency by outperforming Bitcoin, as the higher growth rate of ETH is likely to remain in place throughout the year.

All these positive developments should have pushed the ETH/USD prices higher on Wednesday, but the second-largest cryptocurrency by market cap remained under pressure following the recent negative market sentiment and the strength of the US dollar.

The greenback was high on board after the release of minutes from the FOMC’s July meeting, which revealed that many Fed officials agreed to start tapering monetary support to the economy at the beginning of next year. Some believe that it could begin even earlier than this, given the progress of economic recovery towards employment and inflation goals set by the central bank. This kept the greenback higher against a basket of other major currencies, and the DXY reached the 93.26 level. That put further pressure on the ETH/USD, as the two are negatively correlated.