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Ethereum (ETH) has failed to gain momentum above $1,920 and is trading below $1,900 and the 100-hourly Simple Moving Average. The price might continue to decline and could drop below the $1,850 support. A break below the $1,855 support could lead to further losses towards $1,840 and even $1,800. To resume its upward trend, ETH needs to clear the $1,900 and $1,920 resistance levels, with the next resistance at $1,965 and the possibility of reaching $2,000 or even $2,120. The hourly MACD for ETH/USD is gaining momentum in the bearish zone and the RSI is below 50.
This article originally appeared on www.newsbtc.com
Ethereum, the world’s second-largest cryptocurrency after Bitcoin, has been facing a tough time in the market lately. Its price has been declining, and despite several attempts to recover, it has been unable to gain momentum and push higher. In fact, the recent price drops have put Ethereum at clear risk of further losses, and it remains to be seen whether the cryptocurrency will be able to turn things around.
One of the main reasons for Ethereum’s recent decline is the multiple rejections it has faced at key resistance levels. Ethereum has tried to break above $2,400 several times in the past few weeks, but each time it has been met with resistance and has fallen back down. This failure to break above key resistance levels is a clear sign of weakness in the market, and it suggests that Ethereum may struggle to recover in the short term.
Another factor contributing to Ethereum’s decline is the increased competition from other cryptocurrencies. Ethereum was once the top choice for building decentralized applications (dApps) and smart contracts, but now there are several other cryptocurrencies that offer similar capabilities. This means that Ethereum is no longer as unique as it once was, and its value proposition has been diluted.
Moreover, Ethereum’s high gas fees are also a concern for investors and users. Gas fees are the transaction fees paid to miners to process transactions on the Ethereum network. These fees have been steadily increasing, making it more expensive to use Ethereum for transactions and dApps. This has led some users and developers to switch to other cryptocurrencies that offer lower fees.
All these factors have contributed to Ethereum’s recent decline, and the cryptocurrency’s price is now at clear risk of further losses. If Ethereum fails to break above key resistance levels and continues to face competition and high gas fees, investors may lose confidence in the cryptocurrency. This could lead to a continued sell-off, pushing the price even lower.
In conclusion, Ethereum is facing significant challenges in the market right now, and its price is at risk of further losses. The multiple rejections at key resistance levels, competition from other cryptocurrencies, and high gas fees are all concerning factors that need to be addressed. It remains to be seen whether Ethereum will be able to overcome these obstacles and regain its position as a top cryptocurrency.
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