Ethereum Breaking Above $3,000 – Uptrend Continues to Dominate
The ETH/USD ended the day at $3056.40, with a high of $3073.18 and a low of $2957.03.For the fourth consecutive session, ETH/USD maintained its slow upward momentum, reaching its highest level since January 20. The co-founder of Ethereum, Vitalik Buterin, and the developer, Tim Beiko, have discussed a proposed solution to the data transfer gas problem and current scaling issues. Buterin has talked about adding a feature of blob-carrying transactions in a near-future hard fork.
During the past two weeks, Ethereum has been moving to the upside, and it has now reached its highest level since January 20, above the $3000 level. The rising prices of Ethereum can be attributed to the latest proposals given by Vitalik Buterin and Tim Beiko for a new transaction format.
According to new proposals, the blob-carrying transactions in the upcoming hard fork will be added, which will bring higher scalability to rollups. They will contain a large amount of data that cannot be accessed by EVM execution but whose commitment can be accessed. The format is intended to be fully compatible with the future Danksharding spec. The markets are guessing that this new blob-carrying transaction feature will be implemented in the Shanghai hard fork.
On the other hand, crypto analyst Benjamin Cowen has outlined that the second largest cryptocurrency has been moving in a range of $2000 to $4000 for almost a year. He said that he believes Ethereum is currently following its 2016 price action when ETH also traded sideways for about a year before exploding to new highs. He further said that if ETH continued following the 2016–2017 market structure, it would likely record new all-time highs at the mid-point of 2022. This bullish forecast also had an impact on ETH/USD prices over the weekend.
Meanwhile, the surge in ETH/USD remained limited for the day due to the rising U.S. dollar. The greenback was high after remaining on the lower side for four consecutive sessions. The U.S. Dollar Index, which measures the value of the greenback against a basket of six major currencies, rose to 95.7 level on Friday amid the strong jobs report.
The number of jobs created in the United States in January was higher than expected, raising the prospect of a Federal Reserve rate hike. It ultimately supported the rising prices of the dollar and weighed on ETH/USD, as both have a negative correlation. The U.S. dollar was also high because of the prevailing safe-haven demand in the market. The escalated tensions between Ukraine and Russia kept uncertainty high in the market and added strength to the dollar due to its safe-haven status.3028.87 is the pivot point.
Ethereum (ETH/USD) – Technical Outlook
Ethereum has laid the groundwork for a new surge above the $2,800 resistance level. ETH was able to overcome numerous obstacles near the $2,880 and $3,000 levels. A high has formed near $3,089, and the price may rise further. Ether is trading well above the 23.6 percent Fib retracement level of the upward move from the swing low of $2,952 to the high of $3,089.
On the upside, immediate resistance is near $3,120. A clear break above the $3,120 resistance level could send ETH/USD towards the $3,200 major resistance level. The bears may take a position near $3,200. If they fail, the price of Ether could rise to $3,420 in the near future.
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