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Crypto news: In a notable development for the cryptocurrency landscape, Ethereum (ETH) has experienced a resurgence, reaching prices above $3,000 for the first time since April 2022. This surge coincides with heightened network activity and anticipation of key events like the upcoming Dencun upgrade and the potential approval of an Ethereum exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
As of now, Ethereum is priced at $2,942.38, reflecting a 2.40% change in the last 24 hours. This movement has resulted in a token market capitalization of $356.26B. Ethereum has shown a 28.74% change, indicating a notable performance in 2024.
Ethereum's price recently attempted to break above the $3,000 resistance level but faced selling pressure, leading to a correction. The price dipped below $3,000 and found support near $2,865, close to the 100-hourly Simple Moving Average (SMA) and a key bullish trend line at $2,903.
Currently, Ethereum is trading above $2,933 and the 100-hourly SMA. Immediate resistance lies near $2,980, followed by the major resistance at $3,000. If the price breaks above $3,000, it could test $3,035 and then aim for the $3,080 resistance zone. Further gains might see Ethereum rallying towards $3,200 and potentially $3,250.
Overall, Ethereum's price is currently consolidating above $2,930, with key resistance at $3,000. A successful break above $3,000 could trigger a bullish continuation towards $3,080 and beyond.
Ethereum (ETH) has been making headlines in the cryptocurrency world, with its price recently surpassing $3,000 for the first time since April 2022. Many are optimistic about its future, predicting it could reach new record highs this year, especially with an upcoming major network upgrade called Dencun.
However, not everyone shares this optimism. Investor Fred Krueger has expressed concerns about Ethereum's fundamental trends and potential regulatory challenges. He believes that despite its price rise, Ethereum's network usage has actually been declining. For example, the number of daily active users (DAUs) has dropped from 120,000 in 2021 to 66,000 in the past year.
Krueger also pointed out a decrease in user activity on Uniswap, one of Ethereum's top decentralized exchange protocols. He noted that while Uniswap V3, the top app on the platform, had over 60,000 DAUs in 2020, it now only has around 16,000.
Despite these concerns, Ethereum's market capitalization has reached $361 billion, indicating strong investor interest. However, Krueger warns that Ethereum may be at risk of becoming a meme coin, likening it to Shiba Inu (SHIB), a canine-themed cryptocurrency.
In summary, while Ethereum's price has been rising, some investors are cautious due to concerns about its declining network usage and potential for regulatory challenges.
As of February 20th, Ethereum had risen more than 74% over the previous twelve months, hitting a peak of $3,000.97 on Binance. Analysts attribute this growth to increased confidence in Ethereum's ability to maintain its position as a leading crypto price coin, bolstered by the prospect of an ETF listing and the anticipated benefits of the Dencun upgrade.
The Dencun upgrade, scheduled for March 13, includes improvements such as EIP-4844, which introduces proto-danksharding, making transactions faster and cheaper. Additionally, the upgrade is expected to enhance the usability of Ethereum's decentralized applications (DApps) and attract more developers to the platform
Network activity has also played a role in Ethereum's recent successes. Weekly revenues from transaction fees have exceeded $30 million, signaling a potential tradeable bottom for ETH. However, despite the optimistic outlook, some experts caution that the current price increases might not be sustainable without solid underlying fundamentals. While the derivatives market appears to drive the price, there isn't enough evidence of widespread retail participation or significant technological advancements to support a prolonged rally
