The price of Ethereum’s native token, Ether (ETH), has seen a 35% increase in 2023. However, it has struggled to break above the $2,000 level, facing strong resistance multiple times. This failure to surpass $2,000 can be attributed to three main factors.
Firstly, Ethereum’s price pattern in 2023 resembles a bearish rejection that occurred near $425 in 2018-2019. Just like back then, Ether is in a recovery phase, but it is being hindered by the selling pressure at the 0.236 Fib line, which is currently near $2,000.
Secondly, the strength of the U.S. dollar and Bitcoin has impacted Ethereum’s performance. The increasing value of the U.S. dollar has dampened demand for Ethereum, making it difficult for the price to surpass $2,000. Additionally, Ethereum has underperformed Bitcoin this year due to the hype surrounding the launch of spot Bitcoin ETFs.
Lastly, there has been a decrease in Ethereum network activity, with a drop in the total-value-locked (TVL) across the Ethereum ecosystem and a decline in NFT volumes and unique active wallets. This reduced availability of funds and lower yields have affected Ethereum’s price.
From a technical analysis perspective, Ethereum’s price has formed an ascending triangle pattern, indicating a potential bearish continuation. Breaking below the lower trendline of the triangle could lead to a significant price drop. However, a break above the 50-day exponential moving average (EMA) could result in a price rise towards the triangle’s upper trendline and the 200-day EMA.
In conclusion, Ethereum’s attempts to break above $2,000 have been hindered by its resemblance to a previous bearish rejection, the strength of the U.S. dollar and Bitcoin, and a decline in network activity. Technical analysis suggests the possibility of a bearish continuation, but a break above the 50-day EMA could lead to a price increase. Investors should conduct their own research and consider the risks involved before making any decisions.
(Note: This summary retains the original context and expands on the article’s key points to create three paragraphs.)
