Ethereum continues to travel the lateral route after last Friday’s sharp drop. The ETHUSD fell 4.94% on August 21, dropping to $387 after reaching an intraday high of $419. It made very little gains the next day and again fell below the critical resistance of $400.
ETHUSD recorded a new 2-year high at $447 last Monday. However, the reversal prevailed amid the strengthening of the U.S. dollar. The pair showed an 8.56% loss in one week with the lowest point at $379. It seems that the second largest cryptomone currency by market capitalization met a hard wall with a resistance of $450, before falling below the $400 level.
Bitcoin was not deterred by the $1,500 drop, it continues to point to 12k
Analysis of the Ethereum situation
In a more positive stance, some analysts believe that ETHUSD is not stopping, but is preparing for another push. Chris Burniske, a partner at Placeholder Capital, noted that the economies in the Ethereum chain (referring to the DeFi) and its attractiveness to the public, could boost the value of its network to $1 trillion.
Another popular analyst and crypto dealer named, Michaël van de Poppe, reiterated that Ethereum is preparing for a new rally, as it breaks vital moving averages in higher time frames. But first he will go through a correction.
In July, Ethereum recorded a strong upward trend with a massive 53.77% gain in one month. The rally was fueled by the weakening of the US dollar, the slight strengthening of the overall market and the anticipation of Ethereum 2.0.
In addition, the growth momentum of decentralized finance (DeFi) significantly provides sufficient support for Ethereum and could significantly raise prices.
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Current status of ETHUSD
ETHUSD stops at about $393 at the time of writing and is moving around the $400 break-even threshold. It earned 4.42% on Monday, erasing some of the losses from the previous days. ETHUSD has risen 207% this year to date, outperforming BTCUSD, which gained 68% in the same period.
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