Ethereum Price Analysis: ETH Drops Below The $3,200 Psychological Level
Daily Ethereum ETH Price Forecast
- Ethereum price finds healthy support at 20-day SMA.
- MACD and Parabolic SAR reversed from positive to negative.
The Ethereum price dropped over the last two days as the bears took full control of the market. During this drop, ETH fell from $3,280 to $3,175 – dropping below the $3,200 psychological level. The MACD currently indicates sustained bearish market momentum.
Ethereum Price Reverses Parabolic SAR
Previously, the Ethereum price bounced up from the $3,000 psychological level on August 18 and reached $3,280 on August 20. During this jump, ETH managed to reverse the parabolic SAR from negative to positive.
Image: ETH/USD daily
Looking at IntoTheBlock’s IOMAP, the Ethereum price has healthy support at $3,080. Previously, at this level, almost 441,500 addresses had purchased almost 9 million ETH tokens.
>70,000 ETH Has Now Been Burned By EIP-1559
With an update that changed the way miners are rewarded came into action, the Ethereum network has removed $221 million from circulation.
- The Ethereum developers implemented a change to the network on August 5 that burns gas fees rather than handling them to miners.
- Since the change, $221 million worth of ETH has already been burned.
- Currently, the staking of ETH2.0 has surpassed 7 million.
Since the launch of EIP-1559, the transaction fee-burning update, the total number of coins burned has now topped 71,000 ETH, or $221.5 million. Before the update, the Ethereum network didn’t burn tokens. The gas fees directly went to Ethereum miners, a decentralized network of powerful computers that keep the network running. But after the update, miners will no longer receive those fees unless users tip them.
The gas price was determined according to the laws of supply and demand. But EIP-1559 replaced it with a flat fee, except for the exceptional periods of congestion. Transactional costs are also higher for more complicated ones. To transfer a token on NFT marketplaces, it costs around $8.80. While $20.2 was the cost to process a simple token swap on decentralized finance protocol Uniswap.
However, the Ethereum network will soon switch to a proof-of-stake consensus mechanism, which does not need miners, and Ethereum will only rely on stakers. Ethereum stakers verify transactions by vowing ETH to the Ethereum 2.0 smart contracts. They are rewarded with newly-minted ETH to secure the network.
According to data from blockchain analytics firm Nansen, the amount staked on Ethereum has surpassed 7 million ETH, worth $22.9 billion. This will be locked until an update comes where Ethereum1.0 and 2.0 communicate for the time. Developers expect that the merge would happen by early 2022, followed by the update to unlock staked ETH.
Ethereum Price Is Expected To Reach These Levels
The buyers must ensure that the Ethereum price doesn’t drop below $3,000. If they do so, they could aim for $3,200 again.