Ethereum Technical Analysis: ETH On Track To Regaining $2,400 Psychological Level

Daily Ethereum ETH Price Analysis

Last Updated July 29th 2021
2 Min Read
  • Ethereum price has flashed multiple bullish signals.
  • ETH has had eight straight bullish days.

The Ethereum price is in the middle of a huge bullish rally and is currently priced at around $2,325. Prior to this, ETH dropped from $2,325 to $1,775 between July 7 and July 20. During the drop, ETH flipped the 20-day and 200-day SMAs from support to resistance and reversed the parabolic SAR from positive to negative. 

Ethereum Price On Upward Surge

Ethereum price has been under bullish control for eight straight days between July 21 and July 28. During this surge, ETH jumped from $1,780 to $2,330 – gaining almost $550 in its overall valuation. During this jump, ETH managed to flip the 20-day, 50-day, and 200-day SMAs from resistance to support. Along with that both the MACD and parabolic SAR indicates positive market sentiment.

Image: ETH/USD daily

ETH/USD daily chart 072921

Looking at IntoTheBlock’s IOMAP, the Ethereum price faces immediate resistance at $2,400. Previously, at this level, almost 525,000 addresses had purchased over 1.65 million ETH tokens.

ETH/USD volume chart 072921

>5% Of The Ether Now Locked In ETH 2.0

Ethereum 2.0 now has more than 6.6 million ETH staked. This is more than 5% of the total supply of Ether. The ETH 2.0 network now has 200k validators accounting for about 6.6 million Ether staked. The current annual percentage return (APR) is about 6.1%.

Source: CryptoQuant

ETH/USD cryptoquant chart 072921

The below chart shows the ETH 2.0 staking rate over the same period.

Source: CryptoQuant

ETH/USD cryptoquant chart 2 072921

ETH 2.0 uses proof of stake (PoS) as its consensus system rather than the traditional proof of work (PoW) mechanism. Cryptos like Bitcoin and Ethereum (Core) use PoW for reaching consensus. Validating nodes are called miners, and they require high computing power to hash blocks.

On the other hand, the PoS mechanism requires little computing power. Nodes, called stakers here, only need to stake some of their ETH.

As mining farms with high-end GPUs consume a lot of energy, PoS has emerged as a more efficient, cleaner solution.

Crypto miners have also added to the GPU shortage that’s primarily caused by the global chip scarcity. 

Ethereum Price Is Expected To Reach These Levels

If the Ethereum price breaks past the $2,400 resistance barrier, the IOMAP tells us that ETH will reach $2,700 with ease.

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