Ethereum’s fate depends on its ability to break free from its current momentum.
As of writing, ETH is trading at $1,840, a slight drop of 0.36%.
Ethereum, the second largest cryptocurrency by market capitalization, is caught in a tug-of-war between bullish and bearish forces, struggling to break through the $2,000 mark. ETH has fallen 4.36% in a month. This is further confirmed by the 3.04% drop in trading volume in the past 24 hours and the 0.30% drop in market capitalization over the same period.
Despite some recent positive developments, such as PayPal’s launch of an Ethereum-based stablecoin and growing interest from financial giants in Ethereum-based exchange-traded funds (ETFs), the network is struggling with a notable challenge – high gas fees. These fees, including those involving smart contracts, have averaged more than $4 over the past two months. This has taken a toll on demand for Ethereum decentralized applications (DApps), stifling the growth of the ecosystem.
One key metric to monitor when assessing Ethereum user engagement is DApp utilization. The number of active addresses using DApps has decreased significantly, with active users down 25% in the past 30 days.
Bulls vs Bears
Moreover, the ETH daily price chart shows a bearish sentiment. The price has been consolidating with bears having the upper hand. However, the daily relative strength index (RSI) paints a mixed picture with ETH hovering just below the neutral zone with an RSI value of 45. As of now, according to CoinMarketCap, Ethereum is trading at $1,840 with a slight increase of 0.36%.
Going forward, Ethereum’s fate depends on whether it can break free of its current momentum. If the current pattern continues, the likelihood of a trend breakout remains uncertain. In a bullish scenario, the ETH/USDT pair could surge to $1,917 and possibly $2,018. On the other hand, the downtrend could drag the price down further, with experts warning that a drop to $1,600 or even $1,458 is possible. Lastly, the battle between the bears and the bulls remains an evolving story.