Ethereum remains trapped in a tight range during a period of extremely low volatility. Short term support continues to prop price just below the $2,000 mark, while $2,050 has become a bitter point of resistance on the lower time frames.
Higher time frames paint a more dreary macro picture for Ethereum, with the weekly 21 exponential moving average becoming a stubborn point of resitance to the upside at $2,175.
It’s worth noting that anticipation around Ethereum’s upcoming London fork is gathering momentum. An event like this will typically see the price of the underlying asset rally into the event, before selling off rapidly afterwards.
However, it’s almost impossible to ignore the glaring similarities of this year’s price action with the bubble pop and subsequent bear market in 2018, particularly as Ethereum is now trading 54% lower than just two months ago when it achieved an all-time high of $4,400.
In 2018, Ethereum succumbed to intense sell pressure with an eventual draw down of more than 94%. A plunge of that magnitude this time around will take Ethereum to around the $250 mark, which incidentally was a firm level of resistance throughout 2019 and 2020.
In order for Ethereum, as well as the wider cryptocurrency market, to regain a bullish posture, it needs Bitcoin to prove its naysayers wrong with a convincing rally above the $50,000 level on convincing volume, which will likely only happen if a major South American country adopts Bitcoin as legal tender.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy in to his proposal.
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