- The Ethereum price registered a significant drop during the ongoing session, as it slipped below $2500.
- ETH has been extremely bearish as crypto markets struggle to shake off the bears and had dropped by over 14% on Friday.
The Ethereum price is currently down by nearly 11%, as the price slipped below $2500 with sellers controlling the market. ETH had registered a sharp drop on Friday, falling over 14% and settling at $2569. The weekend saw ETH remain in the red, dropping over 6% on Saturday and settling at $2413. Despite the bullish sentiment, ETH registered a significant recovery on Sunday, rising by 5.34%, before dropping back during the ongoing session.
Ethereum Price chart Indicates Strong Support At $2232
The Ethereum price started the previous weekend on a fairly positive note, rising by 0.42% on Friday. ETH remained in the green over the weekend, rising by 2.26% on Saturday, and by 0.63% on Sunday to end the weekend at $3349. However, Monday saw ETH fall back over 4%, dropping to $3212. ETH remained in the red on Tuesday and Wednesday as well, dropping by 1.61% and 2.39% respectively to end Wednesday at $3085.
Image: ETH/USD daily
The Ethereum price remained firmly in the red on Thursday, as it dropped by nearly 3%, falling to $3000. Friday saw ETH slip below $3000, as the price crashed over 14%, dropping to $2569. The weekend started with ETH falling over 6% on Saturday, dropping to $2413, before recovering on Sunday and rising to $2541. The current session sees ETH down by nearly 11% as sellers look to drive the price lower.
We can see that the Parabolic SAR is currently bearish, indicating that we could see the price drop further.
Looking at IntoTheBlock’s IOMAP for the Ethereum price, we can see that ETH has strong support at around $2230. At this price level, over 359,000 addresses have bought more than 9.5 million ETH.
Image: IntoTheBlock
Looking at the 4-hour Ethereum price chart, we can see that ETH had dropped to $3117 on the 18th. The price dropped further to $3058 before recovering and pushing above the 20-bar SMA to $3261. Here the 50-bar SMA was acting as resistance, and as a result, ETH fell back, slipping below the 20-bar SMA and settling at $2836. ETH continued to drop from this level and fell to $2337 on the 22nd before recovering and pushing up to $2499. The price fell back to $2384 before recovering and rising to $2541 and then dropping to its current level of $2272.
We can see that the MACD is currently bullish, indicating that the price could push higher.
Image: ETH/USD 4-hour
Ethereum Competitors Like Solana (SOL) and NEAR Set For ‘Immense Growth’ This Year: Pantera Capital
Digital asset investment giant Pantera Capital is giving a bullish outlook for Ethereum rivals like Solana and Near in 2022. In its recent letter to investors, Pantera partner Paul Veradittakit said that rival smart contract platforms are eating away the market share of Ethereum, which now accounts for just 63% of the total value locked (TVL) in decentralized finance (DeFi), down from 97% at the start of 2021.
Veradittakit says that Solana, which aims to be a faster and cheaper alternative to Ethereum, is particularly primed to grow in 2022 fueled by the increasing number of projects in its ecosystem.
“Solana, which offers unparalleled transaction throughput, saw an incredible 2021, reaching a peak TVL of $15 billion and a peak price of $260 in November versus $0.22 when it began trading in April 2020. Recent activity in the Solana community, including the launches of massive funds for decentralized social media and gaming, suggests that the ecosystem will continue to grow immensely in the coming year.”
Veradittakit says that Near is also set for explosive growth. In April, the platform launched the Rainbow Bridge that enables the transfer of crypto assets between blockchains.
“Bridges (which enable interoperability between vastly different networks), such as NEAR’s Rainbow Bridge, will help accelerate the growth of non-Ethereum ecosystems by expanding access to liquidity and allowing easier composability of digital assets. Ethereum virtual machine (EVM) platforms, like Aurora on NEAR, are also making it easier than ever for Ethereum-based DApps (decentralized apps) to launch on other chains, enhancing cross-chain engagement within DeFi.”
Buterin Reveals How He Burned Almost $7B Worth Of Shiba Inu (SHIB)
During the UpOnly podcast interview, Ethereum co-founder Vitalik Buterin shared his thoughts on various crypto updates. Buterin revealed the complexity of burning 90% of 500 trillion SHIB tokens. The SHIB coins were donated to Buterin, who donated 10% to the India Covid Crypto Relief Fund, which amounted to $1.2B at the time. He burned 90% of them (worth approximately $7B) at the time because he didn’t “want to be a locus of power of that kind.”
Buterin said that he had to buy a new laptop from Target to do the burn transaction. The funds he received from the SHIB founders were held in a cold paper wallet. He had to use the two numbers to get the private key. He said:
“One of those numbers was with me; the other was with my family in Canada.”
Furthermore, he generated an Ethereum transaction to send ETH to the charity. Of Ethereum, Buterin said that he sees it as a large part of his future. Vitalik said that Ethereum is still aiming for $0.05 per transaction and that rollups and sharding are the way forward concerning scaling without sacrificing security or decentralization.
He anticipates transaction costs to dip below $0.05 “within a couple of years.” He also said that progress on the ZK-rollup Ethereum Virtual Machine is going well and that most nodes won’t store a full chain.
A roll-up is a layer two solution on Ethereum, where transactions are executed off the main Ethereum chain, while transaction data gets posted on layer 1. The concept of sharding is borrowed from traditional databases and refers to the horizontal scaling of a database, similar to increasing the number of lanes on a highway to reduce congestion.
Ethereum Price Is Expected To Reach These Levels
Looking at the Ethereum price chart, we can see that ETH has registered a sharp drop during the current session. There is strong support at around $2230, and ETH has made a marginal recovery, with the price expected to push to $2300.