Ethereum (ETH) has registered a staggering recovery in its daily chart over the past couple of weeks and could rally once again.
Monday also saw a total of 4751 ETH, worth around $8,551,772, burned from Ethereum transactions. Burning is when a token is sent to an unusable wallet and removed from circulation.
4751 ETH Worth $8,551,772 Burned
On Monday, the Ethereum ecosystem saw a total of 4751 ETH worth around $8,551,772 burned from Ethereum transactions. When Ethereum implemented the EIP-1159 upgrade, it changed the fee model drastically. Following the upgrade, each Ethereum transaction includes a variable base fee that adjusts according to the prevailing demand for block space. This base fee is burned, permanently removing it from circulation and lowering the supply of ETH permanently.
Ethereum is currently seeing ETH issued at a rate of 4% per year. However, this is expected to decrease to around 0.5% to 1%. When this occurs, it is speculated that the burn rate of ETH will be greater than the speed at which new tokens are being issued. This will make ETH a deflationary currency.
Ethereum Price Analysis
Ethereum (ETH) is trading around the $1808 mark, down by just over 0.4%. The current price sees the asset trade above the $1785 mark and the 100-hourly Simple Moving Average. ETH had started a slow and steady increase from the $1740 area and was able to reclaim the $1800 resistance zone. It was also able to avoid any significant downside correction, like Bitcoin (BTC).
Bullish sentiment pushed the ETH price above the 50% Fib retracement level of the downside correction from the $1865 swing high to the $1740 low. Additionally, there is also a major rising channel that is forming with support building near the $1800 level on the hourly ETH/USD chart.
The Ethereum price now faces a formidable hurdle at the $1850 mark, which coincides with the upper trendline of a bullish flag pattern. With uncertainty surrounding the Bitcoin price consolidation, ETH has also been trading sideways for over a week.
“Although sellers have attempted to exploit this market flux, the buyers have been steadfast in maintaining a floor at $1,750. Consequently, the coin price oscillates between this support level and the overhead trendline.”
A decisive breakout from this price level can offer a clearer outlook for the near-term price action of ETH. Should market supply pressure increase, any drop below the $1750 level could see a significant correction and retain ETH within its current flag pattern. In such a situation, ETH could slip to its lower trendline, below the $1500 level.
Is There Bearish Sentiment Around ETH?
If ETH fails to move past its $1850 resistance zone, it could embark on another decline, with initial support at the $1800 level, the 100-hourly Simple Moving Average, and the trend line. The next support for ETH is around the $1770 mark, with the main support forming at the $1750 and $1740 levels. A drop below these levels could spark a bearish wave, which could push ETH towards $1650.
Could ETH Head to $3000?
While market sentiments are currently uncertain, ETH price is following the flag pattern formation. Multiple rebounds within its trendline evidence this. Theoretically, such a pattern is a bullish continuation pattern and could push buyers to break above the overhead trendline. A potential breakout could accelerate ETH to a potential level of $2292.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
