Cryptocurrencies resumed the bearish trend at the beginning of April after they tried to make a comeback in March after retreating lower from November until January. The decline resumed pace further in May as Terra LUNA and its stablecoin UST crashed lower toward $0.
Although we haven’t seen new lows since last Thursday, Ethereum has been attempting to reverse higher; but the market seems undecided at the moment. Buyers have been banging heads against the 50 SMA (yellow) on the H4 chart, but the attempt still looks weak and these cryptocurrencies need to push above resistance, but for now, these attempts are a positive thing nonetheless, so let’s see if buyers can make further gains.
Ethereum H4 Chart – The 50 SMA Keeping ETH Buyers in Check
The lower highs pattern remains intact
Ethereum launched the first mainnet shadow fork in preparation for Merge with the layer 2 network last month, which should lower gas fees, so this is positive news, but the sentiment in the crypto market remains mild. The first resistance comes above $3,100 and then at $3,580 above that if buyers are to push higher.
According to recent data shared by IntoTheblock analytics, major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) continue to maintain an extremely high correlation with the stock markets, with the 30-day correlation reaching as high as 0.9 which is almost perfect.
The hashrate of Ethereum has recently increased. It has now reached multiple all-time highs this month alone. However, the question remains whether the digital asset’s price will perform as well as it has in terms of mining hashrate.
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