Ethereum Price Analysis: ETH Re-enters The $2,000 Psychological Level

Daily Ethereum ETH Price Forecast

Last Updated July 23rd 2021
2 Min Read
  • Ethereum price must overcome resistance at 20-day SMA.
  • The MACD reversed from bearish to bullish.
  • The buyers have been in control of the Ethereum price for two straight days. Prior to this, ETH had crashed from $2,325 to $1,775 between July 7 and July 20. Due to this fall, Ethereum managed to:

    • Flip the 20-day and 200-day SMAs from support to resistance.
    • Reverse the parabolic SAR from positive to negative.
    • Flip the MACD (market momentum) from green to red.

    Let’s see what happened after that.

    Ethereum Price Must Overcomes Resistance At 20-day SMA

    Since Wednesday, the Ethereum price jumped from $1,775 to $2,020 after charting two straight bullish days. Due to this jump, ETH managed to re-enter the $2,000 psychological level and the MACD reversed from red to green.

    Image: ETH/USD daily

    ETH/USD daily chart 072321

    Looking at IntoTheBlock’s IOMAP, the Ethereum price faces immediate resistance at the 20-day SMA ($2,050). Previously, at this level, almost 770,000 addresses had purchased over 3 million ETH tokens.

    ETH/USD volume chart 072321

    Vitalik Buterin - 'Move Beyond DeFi'

    At the recent Paris's EthCC Conference, Ethereum CEO Vitalik Buterin said that the network needs to look beyond the wild, speculative financial movement known as DeFi. He shared his views on everything from complex blockchain-based login mechanisms to embarrassing social media token-shilling. 

    “Being defined by DeFi is better than being defined by nothing... But it needs to go further.”

    Buterin said that Ethereum must be socially useful and financially beneficial, drawing a positive response from an audience thrumming with DeFi entrepreneurs, investors, and developers. He complained, for instance, that much of Ethereum’s functionality is presently limited to a select few, singling out expensive gas fees as one particularly egregious example. 

    He expounded on several alternative approaches to the technology that he felt should merit more attention. One idea was “retroactive funding,” in which developers effectively build public infrastructure for free and then are paid for it when it yields dividends. He explained that such a process would allow Ethereum projects to flourish as a “public good.” 

    At the heart of his proposed approach was the use of Ethereum wallets as multipurpose online identities that could be used to sign into a wide variety of Ethereum-based applications, similar to how Gmail and Facebook accounts are used. He said existing login providers like Google tend to arbitrarily de-platform users while often refusing to help those locked out of their accounts. 

    Ethereum-based login options, on the other hand, would provide “credible neutrality,” censorship resistance, and a “built-in economic layer that makes it easier to do mechanism design.” He imagined social networks that only allowed vested members of an Ethereum DAO to post. 

    Ethereum Price Is Expected To Reach These Levels

    Having entered the $2,000 psychological level, the Ethereum price will need to overcome the 20-day and 200-day SMAs to flip the parabolic SAR from resistance to support. Following that, ETH should reach the 50-day SMA ($2,200).