Ethereum continues to trek the sideway route following the sharp plunge last Friday. The ETHUSD pair fell by 4.94% on August 21, retreating at $387 after reaching an intraday high at $419. It made very little gains the next day and has yet again dropped below the critical resistance at $400. Despite the month-long stale road, will ETHUSD break the $450 mark?
ETHUSD recorded a new high in 2 years at $447 last Monday. However, the reversal prevailed amid the strengthening US dollar. The pair printed an 8.56% loss in a week with the lowest point at $379. It seems that the second-largest crypto by market cap met a tough wall at $450 resistance, before falling back below the $400 level.
On a positive note, some analysts think Ethereum is not backing out but is getting ready for another boost. Chris Burniske, partner at Placeholder Capital, pointed out that Ethereum’s on-chain economies (in reference to DeFi) and its appeal to the public could push its network value to $1 trillion. Another popular crypto analyst and trader named Michaël van de Poppe iterated that Ethereum is getting ready for a new rally as it breaks vital moving averages on higher time frames. But, it will go through a correction first.
In July, Ethereum performed a strong uptrend with a massive 53.77% gain in a month. The rally was fed by the weakening US dollar, the slight strengthening of the overall market, and the anticipation of Ethereum 2.0. The growth momentum of decentralized finance (DeFi) significantly provides enough support for Ethereum and could significantly push prices higher.
ETHUSD is trading at $393 as of writing and is hovering around the breakout threshold at $400. It gained 4.42% on Monday, erasing some of the losses of the previous days. ETHUSD is up by 207% this year to date, outrunning BTCUSD (bitcoin), which gained 68% in the same period.
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