Despite the recent price decline, Ethereum (ETH) remains the most valuable altcoin and a pioneer in smart contract technology. ETH is a developer hub that hosts NFT technology and interacts with most other public ledgers through the ERC-20 standard.
Today, ETH has lost some of its hard-earned gains and is trading below $1.7k. The price decline has been attributed to a 20% drop in trading volume. However, this decline has not affected ETH’s position as the second-most valuable altcoin.
ETH has significantly contributed to crypto by enabling developers to create decentralized applications (dApps) and NFTs on the blockchain. In addition, the ERC-20 standard has become the most widely used token on the Ethereum network to communicate with other blockchains.
What is Affecting ETH’s Price?
There are several factors currently affecting the price of ETH. One of the main factors is the recent drop in trading volume, which has contributed to the decline in price. Additionally, there is uncertainty around the upcoming Shangai Upgrade and how it will impact the staking process.
Coinbase has announced that they will resolve unstaking requests within 24 hours after the upgrade, but the exact time it will take to stake the token still needs to be determined. Furthermore, there are concerns about the scalability of the ETH network and the high gas fees associated with transactions, which may contribute to a shift towards other blockchains. Despite these challenges, ETH remains a leader in the smart contract space.
ETH Grants are Opening
The ETH foundation is staying committed to the developers in the community and will favor financial incentives. The foundation recently announced that the launch would support the development of account abstraction concerning infrastructure.
This move would free up the space for designers, which should move in the right direction towards enabling a smoother experience. The focus will be on building a standard for the UX without losing the ethos of decentralized ledgers, which should help combat censorship resistance.
ETH Technical Analysis
The price of ETH retraced during the day, losing gains from the last few days. It consolidated around the $1.7k price on March 14 before sellers prevailed to push it to the $1.6k level. However, it is trading above the 50 and 200-day SMA, which is a bullish cycle sentiment, especially in long dates.
The price is finding support at the 61.8% Fibonacci retracement level and is seeing a minor swing toward an upward trajectory. The 61.8% level has been ETH’s consolidative price in the last few days, acting as a psychological support level. The RSI is currently at 56.4, which shows a level of price neutrality and reflects the hesitation among investors.
The support levels for ETH are consolidating at $1,503-$1,606, and the resistance levels are strongly holding at the $1,709-$1,812 level. The altcoin is facing some pressure from the bears, and if it can stay above the 61.8% Fibonacci level, a rally could form and rocket the price above $1.8k.
Crypto analysts’ predictions for ETH in 2023 are numerous and include Changelly predicting that ETH will hit a maximum price of $4,616 in the next two years. However, if regulations affect the coin, we could see slightly lower figures at $3,966. On the other hand, Bitnation is optimistic and says that the price could rocket to $6,333 in 2025 and hopes the average stays below the $5,000 round figure.
