Ethereum brings the idea of change and the change-making potential of its progressive blockchain. The movement for its blockchain cryptocurrency ETH might have taken a back seat in 2022, but the outlook compared to its competitors, such as SOL, ADA, and others, is pure gold.
Transition validation and the decision to shift to Proof of Stake would save essential resources and allow a lesser transaction volume in the coming years. The positive impact of this change wouldn’t be seen instantaneously.
ETH remains the number 2 position holder, but market capitalization has slipped further below $148 billion. The marginal gains witnessed yesterday were a buying attempt to take advantage of this dipping value. It shouldn’t be considered an actual buying spree.
Of its features, ETH is capable of handling DeFi, dApps, and Smart contract-based applications along with other modern transaction needs. The merge of its mainnet, beacon, and POS chain has finally been executed.
But this act adds another new dynamic of a much slower ETH issuance process; stakers are earning a marginal return on the staked Ethereum holdings. This number could be lesser than the gradual inflation, but with a total of 490,000 validators, the rewards are expected to be thin.
Trendline drawing resistance from the moving average has created new hurdles for buying sprees. The selling activity ramps up upon reaching these levels. The immediate resistance can be witnessed at $1334, synonymous with the 100 EMA levels. Find more details about whether or not the Ethereum token can reach the resistance!
Crypto leaders have been moving in a consolidative pattern as news has stopped impacting these tokens. At the same time, Christmas for ETH buyers will probably be unsurprising as trading volumes have a major hit during the weekend and festivities.
Furthermore, the resistive price action keeps buyers from buying as they have a strong probability of testing new lows before the year ends. While 2021 was full of volatility and movement, 2022 has been moving in a negative direction.
Ethereum has managed to wipe out the gains made in the last two years, as similar values were witnessed in January 2021. The only difference was the buying sentiment, as RSI indicated an overbought zone back then compared to the oversold levels at the present value.
ETH could continue to struggle till $1650 before making a strong breakout. Hence the next movement would be full of volatility and shocks. On long-term charts, Ethereum showcases a rejection at $1350 levels to have pushed off buyers towards retesting the $1150 value.