Ethereum’s price has fallen to around $1,577 after reaching $1,690, raising concerns of a potential drop below $1,000. While Vitalik Buterin prioritises privacy in Ethereum’s development, the network generated significant DApp fee revenues amidst price challenges. Technical analysis suggests bearish momentum, indicating a focus on privacy features and upcoming upgrades to support Ethereum’s ecosystem strength.
Ethereum (ETH) has recently seen a spike to $1,690, before falling below the crucial $1,600 support level, currently trading around $1,577. This reflects a decline of approximately 2.4% in the last 24 hours. The cryptocurrency initially established a solid base above $1,550 before gaining momentum and breaking through resistance levels at $1,600 and $1,620, reaching a peak at $1,690. However, increased selling pressure afterwards led to the breach of the bullish trend line support at $1,625, indicating a shift towards bearish sentiment in the market.
Market analyst Ali Marteniz noted a previous bullish breakout from an ascending triangle pattern signifying strong buyer interest. Despite this, current trading activities indicate a loss of momentum. Ethereum has retraced to a significant 50% level, settling beneath the $1,625 mark and failing to maintain its position above the 100-hour Simple Moving Average, indicating diminishing bullish momentum. Resistance is now positioned at $1,590, a critical technical and psychological barrier, while further resistance levels exist at $1,640 and $1,650. A definitive breakthrough above $1,650 could initiate a resurgence towards $1,690, yet the present technical configuration appears to favour a bearish outcome.
Further, the daily chart exhibits a bearish trend with a Relative Strength Index (RSI) reading of 40, which is below the neutral midpoint of 50. Ethereum’s current trading position indicates it has returned to a multi-year trading range, currently situated at the midpoint of this channel. Amidst these price fluctuations, Ethereum co-founder Vitalik Buterin has shifted focus towards enhancing network privacy in his recent discussions. He emphasised the critical nature of privacy, stating, “Privacy is freedom” and expressed concerns regarding corporate and governmental encroachments on individual privacy.
