- The Ethereum network has witnessed a surge in transaction volumes, reaching a six-month high, processing over $213 billion in transactions in the past week.
- The current price of ETH is around $1,893, and it maintains a positive stance above the $1,780 support level, with resistance levels at $1,900, $1,950, $2,000, and $2,050.
While Bitcoin has been consolidating for a while, Ethereum along with other altcoins has been making strong gains. Over the last weekend, the ETH price rallied all the way to $1,900 amid a bullish momentum setup.
The Ethereum network has experienced a notable surge in transaction volumes, reaching a new six-month high. In the past week, the mainnet alone processed over $213 billion in transactions, highlighting a substantial increase in on-chain activity. Layer 2 solutions like Arbitrum, Optimism, and Base have further boosted this growth, contributing an additional $16 billion to the overall volume. This uptrend reflects growing confidence and utility within the Ethereum ecosystem, signaling a more vibrant blockchain environment.
This surge in transaction volume is accompanied by other significant metrics, including a rise in transaction fees. While higher fees can signify network congestion and heightened demand for block space, they also indicate increased economic activity on the network. It’s important for investors and users to monitor these fees, as they can impact the cost-effectiveness of conducting transactions on the Ethereum network.
In the past week, the network has burned an average of 855,000 ETH per year, a mechanism designed to exert deflationary pressure on the token’s supply over time. This “burn” process counteracts the issuance of new ETH, aiming to strike a balance that can benefit the asset’s long-term valuation.
ETH Price Action, Key Things to Watch
At present, ETH is trading at $1893 and has managed to maintain a positive stance above the $1780 support level. The cryptocurrency has initiated a notable price surge, surpassing the $1850 resistance and even outperforming BTC.
In fact, its price surged above $1900, reaching a fresh multi-week high at $1912. ETH is presently consolidating its gains and hovers around the 23.6 percent retracement level of the upward movement from the $1781 swing low to the $1912 high.
Furthermore, ETH is trading above the 100-hourly Simple Moving Average, with an important bullish trend line forming and offering support near the $1870 mark on the hourly ETH/USD chart. Resistance for ETH is anticipated around the $1900 level, with the primary significant resistance found at $1920.
A successful breach of this resistance could pave the way for a push towards the $1950 resistance. Further gains may lead ETH to test the $2000 resistance, followed by the next major barrier at $2050, and if surpassed, could see ETH rallying towards $2120.
$400 Million ETH Open Interest Wiped Out
While the technical setup for ETH shows bullishness, investors need to warrant caution amid a major wipeout of the Ethereum Open Interest.
“Ethereum has piqued my interest this Sunday. Open Interest (OI) has surged by over $600 million in recent days, indicating imminent volatility,” commented on-chain crypto analyst Maartunn. Traders are hopeful that ETH will reach the $2000 mark, as Bitcoin remains robustly anchored at $35,000.
Maartunn, on November 6, observed that $400 million of OI vanished in a single day, effectively erasing most of the recent OI gains. This development has exerted pressure on the ETH price, potentially leading to a pullback or correction. Despite the overall positive market sentiment, a retracement appears more probable than a correction at this time.
And Ethereum price dipped. That’s already $400m of Open Interest wiped out 🫡 https://t.co/tfjKwuGRz8 pic.twitter.com/8qnkxavWut
— Maartunn (@JA_Maartun) November 6, 2023
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