- The Ethereum price has registered a marginal drop during the ongoing session.
- ETH had pushed above $4000 on Wednesday, rising by over 4%.
The Ethereum price fell back marginally during the ongoing session, as buyers and sellers look to take control. ETH had started the week on a relatively negative note, as the price dropped by over 8% on Monday, falling to $3783. ETH recovered on Tuesday despite the bearish start, rising by over 2% and settling at $3862. ETH pushed up on Wednesday as well, after an increase of over 4% saw ETH push above $4000, before a marginal drop during the ongoing session.
Ethereum Price Chart Indicates Buyers And Sellers Struggling For Control
The Ethereum price started the previous week on a fairly bullish note, rising by almost 4% on Monday, pushing above the 20-day SMA and settling at $4356. However, Tuesday saw the price drop back, falling to $4310, before it moved above the 50-day SMA, rising by over 3% and settling at $4441. Despite the bullish sentiment, the price dropped drastically on Thursday, falling by over 7%, slipping below the 20 and 50-day SMAs, and settling at $4115. Friday saw ADA continue to drop, with the price dropping by over 5% and settling at $3905.
Image: ETH/USD daily
After slipping below $4000 on Friday, the Ethereum price made a strong recovery over the weekend, rising by 4.68% on Saturday and then rising by 1.13% on Sunday to end the weekend at $4134. However, ETH crashed on Monday despite the bullish weekend, falling by 8.49% and settling at $3783. Tuesday saw the price make a strong recovery, as it rose by over 2% before another increase of 4.11% on Wednesday saw ETH rise above $4021. The current session sees sellers looking to push the price down below $4000, with the Parabolic SAR currently bearish.
IntoTheBlock’s IOMAP for the Ethereum price, we can see that ETH faces strong resistance at around $4182. At this price level, over 1.5 million addresses have sold more than 13 million ETH.
Image: IntoTheBlock
Looking at the 4-hour Ethereum price chart, we see that ETH dropped to $3900 on the 11th after slipping below the 20 and 50-bar SMAs. The price pushed up from this level, as it rose to $4089, but could not get past the 20-bar SMA, which was acting as resistance. The price broke past the SMA on the 12th, when it rose to $4141, but fell back almost immediately, dropping back below the 20-bar SMA to $3766 on the 13th. The price rose to $3865 on the 15th, then dropped to $3660 before pushing above the 20-bar SMA to move to its current level of $4006.
We can see that the Parabolic SAR and MACD are bullish, indicating that we could see the price rise, but if ETH continues to drop, we could see them flip back to bearish.
Image: ETH/USD 4-hour
Sen Elizabeth Warren: DeFi Is Dangerous
Massachusetts Senator Elizabeth Warren did not hold back in her criticism of decentralized finance (DeFi), expressing concern about how a run on stablecoins would affect the average investor. In a recent hearing with the Senate Banking Committee, Warren questioned Hilary Allen, a professor at the American University Washington College of Law, whether a run on stablecoins could potentially endanger the United States financial system.
Though Allen said an “en masse” redemption of stablecoins from people who had lost faith in the tokens would be unlikely to have “systemic consequences” for traditional markets at present, the DeFi system would be more likely to feel the effects.
Warren countered that because stablecoins provided “the lifeblood of the DeFi ecosystem” outside of regulated markets, she believed their value would “take a nosedive precisely when people most need stability,” with the impact affecting traditional finance. Warren said:
“DeFi is the most dangerous part of the crypto world. This is where the regulation is effectively absent, and — no surprise — it’s where the scammers and the cheats and the swindlers mix among part-time investors and first-time crypto traders. In DeFi, someone can’t even tell if they’re dealing with a terrorist.”
Allen added that the potential threat Warren posited might be in DeFi’s future, without addressing her claim about illicit transactions:
“I don’t think DeFi can grow without stablecoins. I think it would struggle. Right now, I think DeFi is contained to the point where it won’t impact financial stability, but if it grows, I think there’s a real threat there, particularly if it becomes intertwined with our traditional financial system.”
Ethereum Price Is Expected To Reach These Levels
Looking at the Ethereum price chart, we can see that the current session sees buyers looking to push the price below $4000. If sellers manage to retain control of the session, we could see the price drop below $4000, but if buyers take control, we could see it move towards $4100.