Ethereum Technical Analysis: ETH Has Two Bullish Session After Three Bearish Ones
Daily Ethereum ETH Price Analysis
- Ethereum price faces immediate resistance at the $2,600 line.
- Between May 27 and May 29, ETH dropped from $2,730 to $2,275.
Over the last two days, the Ethereum price had jumped from $2,275 to $2,540 – gaining a little over $250. Before this, ETH had three straight bearish days wherein it fell from $2,730 to $2,275 – losing almost $450 in its overall valuation.
Ethereum Price Has Two Resistance Barriers – $2,600 and $2,900
Following the $250+ jump over the last two days, the Ethereum price faces two strong resistance barriers at $2,600 and $2,900. The $2,900 line is particularly strong since it sees a confluence of the 20-day and 50-day SMAs. The MACD shows sustained bearish momentum so it seems unlikely that ETH is reaching these levels any time soon.
Image: ETH/USD daily
According to the IOMAP, the $2,600 resistance is a pretty formidable barrier to the Ethereum price as well. Previously, at this level, nearly 500,000 addresses had purchased over 3 million ETH tokens.
Active Ethereum Supply On The Rise
“Amount of Supply Last Active 3m-6m (1d MA) just reached a 22-month high of 16,952,186.149 ETH”
More Newcomers Coming In
“Number of Addresses Holding 0.01+ Coins just reached an ATH of 15,724,630”
Total Fees Going Down
“Total Fees Paid (7d MA) just reached a 5-month low of 162.858 ETH.”
Architect of Digital Yuan: CBDC Can Be Set Up on Ethereum Network
Yao Qian, science and technology supervision bureau head at the China Securities Regulatory Commission (CSRC), recently said that a central bank digital currency (CBDC) could run directly on the Ethereum network or Facebook-backed blockchain payment system Diem. During spring meetings of the 2021 International Finance Forum (IFF), commenting on the currency's operational architecture, he said:
We can imagine that if the central bank's digital currency runs directly on blockchain networks such as Ethereum and Diem, then the central bank can use their BaaS services to directly provide the central bank's digital currency to users without using intermediaries.
Yao outlined seven aspects that must be considered when researching and developing a CBDC. These include its technical route, value attributes, operational architecture, interest accrual, distribution, the implementation of smart contracts, and regulatory issues.
The official noted that a digital currency cannot be “a simple simulation” of physical money, making a case for creating smart money. However, he also pointed to the vulnerabilities of smart contracts, claiming that the technology has to mature.
When it comes to regulations, Yao called or striking the perfect balance between protecting users’ privacy and ensuring compliance with basic anti-money laundering and know-your-customer (KYC) guidelines.
Ethereum Price Is Expected To Reach These Levels
The buyers will need to overcome the $2,600 resistance barrier to continue this upward surge. If they manage to do so, the Ethereum price could reach $2,900 before encountering another resistance. However, since the overall market momentum is negative, it seems unlikely that the price is going to conquer these lines, and will likely drop to the $2,400 support line.