December 1, 2023
Ethereum (ETH) ,000 price pivot: the asset challenges the key range again

Arman Shirinyan

Ethereum is still battling the infamous resistance level, but there is still a lot to conquer

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As Ethereum (ETH) approaches the pivotal $2,000 level, investors are closely watching its ability to maintain or reverse the current momentum. The significance of the $2,000 level lies not only in its psychological impact but also as a technical indicator that has historically served as both support and resistance.

In the current context, Ethereum’s price resilience can be partially attributed to the network’s decreasing supply. With the implementation of EIP-1559, a portion of transaction fees are “burned”, effectively removing ETH from circulation. Recent data shows that a large amount of ETH is being burned, with an annual estimated rate of 1,273K ETH. This deflationary mechanism is compared with supply growth of 0.35% per year, which presents a compelling narrative for scarcity-driven price appreciation.

Ethereum’s supply dynamics are complemented by its ever-growing ecosystem, in which DeFi and NFTs continue to generate demand for ETH. However, it is important to consider that, while supply metrics are encouraging, demand must maintain momentum to sustain positive price action. The overall positioning of the asset is strong, with fundamentals supported by continued growth and the anticipation of a full transition to Ethereum 2.0.

Investors should consider Ethereum’s broader role in the blockchain ecosystem, its technological progress, and macroeconomic factors affecting the crypto market as a whole. As ETH retests the $2,000 range, its ability to hold above this level could be a bullish signal, yet any failure to do so could see the asset seek support at lower levels. Therefore, investors would do well to keep a keen eye on market trends, on-chain metrics, and global economic indicators that could impact Ethereum’s trajectory.

Shiba Inu hits major resistance

Meme coin Shiba Inu (SHIB) has been making headlines in the cryptocurrency market not only for its community-driven initiatives but also for its price action, which has shown bullish signs recently. Technical analysis of SHIB/USDT on the daily chart indicates that SHIB is currently testing an important resistance level, which if broken could indicate a bullish trend.

At the moment, SHIB is hovering around 0.00000850 points. For SHIB to confirm a bullish breakout, it would need to consistently close above this level and maintain upward momentum. The coin is making higher lows, which is a positive sign for investors looking for potential uptrend continuation. Conversely, if SHIB fails to break this resistance, it may see a return to lower support levels.

Broad sentiment in the crypto market, especially around meme coins, can be volatile, heavily influenced by social media and market trends. Shiba Inu’s strong community support and the recent increase in burn rates have added a deflationary aspect to the economics of the token, but the overall impact on the price remains to be seen.

Investors are advised to keep a close eye on volume changes and market sentiment indicators to assess the potential for SHIB price fluctuations. Shiba Inu’s transformation from a meme-based asset to an asset with real utility is underway, as evidenced by a partnership with The Manny Pacquiao Foundation, which aims to use the Shibarium blockchain for charity initiatives.

These developments paint a bullish picture for SHIB, suggesting that its current market value may provide an attractive opportunity for investors eyeing the next bullish move, with an ambitious target price of $0.01 a focal point for the community. Is.

While the direct impact of burn rate on price remains a subject of debate, these concerted efforts by the SHIB community reflect a strategic approach to boosting both demand and long-term value for the token.

About the Author

Arman Shirinyan

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.

Arman strongly believes that cryptocurrencies and blockchain will continue to be in use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.


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