Ethereum’s Price Reaches an Important Resistance Level
Ethereum and Bitcoin saw a bounce on Monday, May 30th, and Tuesday, May 31st, as investors continued to take advantage of their buying opportunities. The rally was in line with the performance of European equities and U.S. futures. In Europe, the CAC 40, DAX and FTSE 100 indices rose by more than 0.50%. Now the Ethereum price is falling as American futures point to a lower opening.
The price of Ethereum has rallied sharply in recent days as investors worry about the crypto industry and falling transaction numbers. ETH is trading at $1,963, down a few points from this week’s high of $2,036.
If you want to find out more about the price of Ethereum and to read the latest market updates, download for free our companion app. Born2Invest business news mobile app makes it easy for you to keep informed, to intuitively move from story to story, and from section to section. Our clean design lets you read articles without clutter, and use the app with no limits on how many articles you can view.
ETH recovery fades
Ethereum and Bitcoin saw a bounce on Monday, May 30th, and Tuesday, May 31st, as investors continued to take advantage of their buying opportunities. The rally was in line with the performance of European equities and U.S. futures. In Europe, the CAC 40, DAX, and FTSE 100 indices rose by more than 0.50%.
Now the Ethereum price is falling as American futures point to a lower opening. Futures tied to the Dow Jones are down more than 300 points, while the Nasdaq 100 index is down more than 180 points. In recent months, Ethereum and Bitcoin prices have been closely correlated with the Nasdaq 100. A closer look at internal data shows that the number of transactions in the Ethereum ecosystem has been declining after reaching an all-time high in May 2021.
The reason for the decline in Ethereum transactions is clear to see. For example, the performance of DeFi platforms has weakened. According to DeFi Llama, the total value of locked tokens (Total Value Locked) has decreased from more than $150 billion to about $70 billion.
Performance in the NFT industry has also been somewhat weak recently. Recent data shows that trading volume in NFTs on platforms such as OpenSea and Rarible has dropped by more than 50% this year. There is a likelihood that the trend will continue if interest rates continue to rise.
The same trend can be seen in the Metaverse and play-to-earn projects like Decentraland and Axie Infinity.
Ethereum Price Forecast
On the four-hour chart, it can be seen that the ETH price tried to make a comeback. It rose to $2,015, which is the highest level since May 24th. This price was running on the descending trend line, which is shown in brown.
Ethereum price has crossed the overbought zone and is slightly above the important support at $1,895. Therefore, there is a probability that the coin will retest the important support at $1,895 and then resume the uptrend. A bullish recovery will be confirmed if the price moves above the resistance at $2,000.
(Featured image by WorldSpectrum via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
New Real Estate Equity Crowdfunding Portal Yeldo Crowd Was Launched
The first campaign launched on Yeldo Crowd, which complements the bank financing already provided by a leading Italian institution has...
ESG Funds Reach 11.7 Billion Under Management
ESG funds in Western Europe accounted for 18.2% of all bond funds in February, up from 18.1% at the end...
Credimi Digital Assets and 30 Employees Move to Bank CF+
Credimi continued to lend to SMEs in the first half of the year, albeit only for a little more than...
Novartis Invests €32 Million to Expand Torre Annunziata Campus
Thanks to this investment plan, Novartis Italia, which already achieved a turnover of €1.72 billion in 2022, €78 million of...
Kenya Airways Announces Record Losses of $290.5 Million in 2022
Established in 1977 after the demise of East African Airways, Kenia Airways is 48.9 percent owned by the Kenyan government...
Crypto1 week ago
Crypto Fear and Greed Index Indicates Bullish Sentiment
Featured2 weeks ago
China Is an Ineffective Market When it Comes to ESG Leaders
Business6 days ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 12]
Biotech2 weeks ago
GenomeUp Closes 1.5 Million Round Led by Scientifica and Lazio Innova