Ethereum (ETH) is currently in a complex phase, between fall, drop in performance and critical resistance level. Currently, the ETH is negotiated around $ 3,241, a drop of about 33 % compared to its historic summit! But, for Ethereum to find this record level of $ 4,878 reached in November 2021, several significant developments will have to be carried out, at the risk that the crypto will undergo a more pronounced fall.
Crypto: Ethereum faced with disastrous performance
Ethereum, the second largest crypto by market capitalization, is currently negotiated at $ 3,241 after a tumble of almost 2 % in the last 24 hours, and increased resistance to $ 3,400. And not to fix anything, other layer 1 blockchain Ethereum catches up in terms of applications, use cases, costs and amounts brought into play, according to Aurelie Barthere, main analyst at Nansen.
In addition, the supply of Ethereum has also increased by 12,353 ETH, reaching an unprecedented level since February 2023. At the same time, the activity of the Crypto network has decreased, with a 4 % drop in unique addresses and 1 % of daily transactions. These trends could exert additional down pressure on the course of the ETH.
How to reverse this trend?
To reverse this gloomy trend, Ethereum must stimulate fundamental activity on his blockchain. Indeed, increased collaboration with the public and private sectors, especially in the United States, could promote its Crypto adoption. For example :
- The DOGE conducted by Elon Musk, could use Ethereum blockchain for spending and financial management solutions of the American government.
- Joseph Lubin, co -founder of Ethereum, suggested that the Trump family would plan to create a crypto business based on Ethereum, which could strengthen its adoption.
Furthermore, The volume of transactions on the options market exploded in a monthindicating a possible recovery. However, to start a real increase, it is crucial for Ethereum to exceed resistance at $ 3,400. A daily fence above this level could lead to a liquidation of short positions worth more than $ 1.09 billion, thus opening the way to an increase around $ 4,000.
Despite current performances, Ethereum remains a force majeure in the crypto world, but it must overcome significant challenges to reach its ATH. With well -defined strategies and increasing adoption, Ethereum has all the potential to iron the $ 4,878.
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