Bears appear to have taken over the crypto market as the majority of coins trade in red at the time of writing. Bitcoin has slipped below the psychological level of $60K and is stooping below to $58K. All the top alts inclusive of ETH, XRP, ADA and SOL are seeing down to 6-9%. However, Shiba Inu is on a rising streak up by 41.7%.
In tandem with the entire market, ETH too has taken a fall. The token is now down by 5.2% and is trading at $3973 according to Coingecko.
As ETH falls below the crucial level of $4000, support on the downside can be found at $3,750. Incase of a further fall the next support levels reside at $3,500 and $3,250. However, if ETH flips the bearish momentum and starts a hike, resistance will be found at $4500. Incase of higher rally, $4750 and $5000 will be next major resistance levels.
Bullish factors for ETH
As bullish optimism led people to move their coins off-exchange for long-term storage, the amount of Ethereum ETH held on cryptocurrency exchanges fell to a two-year low.
According to the Glassnode chart showing the Ethereum balance on cryptocurrency exchanges, crypto exchanges collectively possess 14.7 million ETH (about $59 billion), the lowest number since November 2018. The entire value locked in the Ethereum 2.0 deposit contract has reached a new all-time high of $34.3 billion, demonstrating trust in the coin’s value.
Ethereum’s realised cap – the worth of all ETH at the price when it was last changed — also hit an all-time high of $186.1 billion, according to Glassnode statistics. This adds to the optimistic sentiment by demonstrating that market participants are willing to continue paying ever-higher prices for the coin.
Miners have been encouraged to invest in Ethereum infrastructure as prices have risen above $4,000, as seen by the network’s hashrate reaching a new all-time high.
Market players are also becoming more bullish as they prepare for the Altair network update, which is set to go place today.