Ethereum Price Analysis: ETH Consolidates Below the $1,800 Level
Daily Ethereum ETH Price Forecast
- The RSI for Ethereum price is floating at the edge of the overbought zone.
- The MACD in the 4-hour chart shows sustained bearish momentum.
On January 22, the Ethereum price jumped from $1,100 to $1,770 as of writing. ETH gained around $670 in valuation in the process, flipping the 20-day SMA from resistance to support. The 20-day SMA has acted as reliable support for ETH.
Ethereum Price Sits On Top Of Healthy Support Levels
As things stand, the Ethereum price is consolidating below the $1,800 level. The relative strength index (RSI) is trending horizontally at the edge of the overbought zone. As such, any sudden price jumps could overvalue the asset and trigger a bearish correction.
Image: ETH/USD daily
The Ethereum price is currently sitting on top of two healthy support levels at $1,650 and $1,750. At the former level, 254,000 addresses had previously purchased 8M ETH tokens. On the upside, there is a lack of strong resistance barriers.
When we see the 4-hour Ethereum price chart, two negative signs tell us that ETH may soon go through a bearish correction. Firstly, the parabolic SAR has reversed from bullish to bearish. Secondly, the MACD shows increasing bearish momentum. The 20-bar SMA has temporarily stopped Ethereum’s downflow.
Image: ETH/USD 4-hour
Ethereum Mining Difficulty Reaches ATH
As per Glassnode, Ethereum’s mining difficulty just reached an all-time high of 4,971,429,558,914,110. Previous ATH of 4,966,689,335,224,330 was observed on 07 February 2021. As such mining Ethereum is now tougher than ever before.
Binance Smart Chain Daily Transactions Overtakes Ethereum
The Binance Smart Chain (BSC) has recently surpassed the Ethereum network in terms of daily transactions. This comes at a time when users are actively looking for alternatives as they are forced to pay incredibly high gas fees on Ethereum.
Binance CEO Changpeng Zhao took to Twitter to say that this occurrence is proof that the platform’s low transaction fees have attracted users. Zhao highlighted that the platform will continue to commit more resources to sustain low transaction fees for the community.
Although Binance Smart Chain is barely six months old, it has witnessed a significant increase in daily transaction volume. The number of daily transactions moved past 1.6 million just a few days back. The number of new addresses created on BSC has also maintained steady growth.
According to Binance’s tweet, the average transaction cost on Ethereum is around $5.53. However, this seems like a modest number as analytics platforms like BitInfoCharts have reported average transaction costs of around $23.
Responding to Changpeng Zhao, some crypto community members have expressed concerns about the highly centralized nature of BSC.
Ethereum Price Is Expected To Reach These Levels
The Ethereum price will likely continue to trend horizontally between the $1,800 and $1,750 levels.