- Ethereum price flipped 20-day SMA from support to resistance this Tuesday.
- The MACD indicates slight bullish momentum.
Ethereum crashed from $2,860 to $2,350 between June 4 and June 11 after facing resistance at the 50-day SMA. During this crash, ETH managed to flip the 20-day SMA from support to resistance. Let’s take a closer look with technical analysis.
Ethereum Price Has Four Straight Bullish Days
Over the last four days, the buyers have been in complete control of the market as ETH jumped from $2.350 to $2,600. This Tuesday, the Ethereum price managed to flip the 20-day SMA from resistance to support. The MACD shows slight bullish market momentum.
Image: ETH/USD daily
Looking at IntoTheBlock’s IOMAP, we can see that the 20-day SMA ($2,520) provides strong support. Previously, at this level, 555,000 addresses had purchased over 10 million ETH tokens.
Ethereum Whales Holding Strong
"With #Ethereum rebounding above $2,600 earlier today, we see that the long-term growth rate of $ETH whale addresses with 10k to 100k tokens is staying near #AllTimeHighs despite the dropoff from May. Meanwhile, addresses with 10-10k continue falling."
Ethereum Price On-Chain Analysis – Glassnode
"#Ethereum $ETH Exchange Outflow Volume (7d MA) just reached a 5-month low of $20,268,876.18 Previous 5-month low of $20,273,203.20 was observed on 13 June 2021."
"#Ethereum $ETH NVT Signal (7d MA) just reached a 7-month low of 801.701. Previous 7-month low of 801.722 was observed on 14 June 2021."
“#Ethereum $ETH Total Gas Usage (7d MA) just reached a 1-month low of 3,940,730,856.786. Previous 1-month low of 3,940,824,464.006 was observed on 13 June 2021.”
More Than A Quarter Of Ethereum Locked in Smart Contracts
Crypto expert and ETHhub founder Anthony Sassano recently noted that the amount of ETH locked into smart contracts is similar to that during the DAO event in mid-2016. He said:
The amount of ETH in smart contracts is now at a similar level to what it was during The DAO event (around 23% of all ETH).
Sassano added that at the time, it was worth $230 million when ETH was trading at around $13. That amount is currently worth a whopping $63 billion.
The chart depicts the spike during that year when Ethereum poured into the DAO, the first decentralized autonomous organization launched on the Ethereum blockchain, after raising $150 million through a token sale.
The DAO was hacked due to vulnerabilities in its codebase, and Ethereum was hard forked to restore the stolen funds, resulting in the network splitting into Ethereum and Ethereum Classic.Sassano also noted that there was more than a million ETH in the Binance Smart Chain bridge contract.
A lot of that ETH locked up is in the Beacon Chain deposit contract. According to the ETH 2.0 Launchpad, there are currently 5.42 million ETH staked on the blockchain. At current prices, this is estimated to be worth around $13.5 billion. It also represents 4.65% of the entire supply and around a quarter of all ETH locked across all decentralized finance (DeFi) smart contracts.
Staking rewards diminish over time as more ETH is locked into the contract. It’s currently generating a yield of 6.7% per year. The network has 165,000 active validators, an increase of 250% since the beginning of 2021. According to reports, Ethereum fundamentals are solid at the moment. They have been strengthening against Bitcoin over the past year or so.
Ethereum Price Is Expected To Reach These Levels
Having conquered the 20-day SMA, the Ethereum price now has a strong base of operations to make a jump for the $2,650 barrier. Upon breaking past this line, ETH should take down $3,000.