- Ethereum price has had a rough start to the year and is nearly 50% down. We discuss this coin's origins, its performance and prospects.
Price Prediction
Ethereum price return to the $1,500 support has helped it build traction that could help propel it retest the $2k psychological level. The coin gained 7.22% in the last week, which has helped it build positive sentiment. However, it is down by 49% year-to-date and its DeFi TVL dropped by 0.28% in the last 24 hours.
In addition, it has registered net negative outflows in the ETH spot ETF market for the last six successive sessions, signaling declining institutional confidence in its upside potential. Its latest trading session saw it record $14.2 million worth of outflows, up from $6 million previously.
ETH price is currently at $1,576, below the Volume Weighted Moving Average (VWMA) level of $1,672 on the daily chart. In addition its RSI reading is at 39, adding credence to the likelihood of bearish control in the near-term.
Technical Analysis
The momentum on Ethereum price favours the sellers to stay in control below the pivot mark at $1,590. Primary support will likely be at $1,565, but a stronger momentum will break below that mark and send the price lower to test $1,550.
On the upside, moving above $1,590 will shift the momentum towards bullish control. That will likely see the gains encounter the first resistance at $1,610. Breaking above that level will invalidate the downside narrative. Also, it could result in extended gains to test $1,620.
Ethereum (or Ether) is a decentralised layer 1 blockchain with smart contract functionality. Its ecosystem supports building and deployment of decentralised applications (dApps) as well as Decentralised Finance (DeFi).
Its native coin is Ether, or ETH and it is the one that powers the ecosystem and used to pay for transaction. The Ethereum blockchain ecosystem is compatible with not only ETH, but also ERC-20 tokens minted on that blockchain
Conclusion
Ethereum price has recently built traction by reclaiming the $1,500 support. However, it trades below its VWMA on the daily chart and a weak RSI adds to the prospect of continued decline in the near-term. Conversely, reclaiming the VWMA as its support and moving its RSI to levels above 50 will be among the most important steps in initiating a reversal. That could also help improve investor sentiment and see it register gains in the ETF market.
