Ethereum is still struggling with a notorious resistance level, but there is still much to conquer
As Ethereum (ETH) approaches the pivotal $2,000 mark, investors are closely monitoring its potential to maintain or reverse current momentum. The importance of the $2,000 level lies not only in its psychological impact, but also as a technical indicator that has historically acted as both support and resistance.
In the current environment, Ethereum’s price resilience can be partially attributed to the network’s decreasing supply. With the implementation of EIP-1559, a portion of the transaction fees are “burned”, thereby removing ETH from circulation. Recent data shows a significant amount of ETH being burned, with an estimated annual burn rate of 1,273,000 ETH. This deflationary mechanism is juxtaposed with supply growth of 0.35% per year, presenting a compelling narrative for scarcity-driven value appreciation.
Ethereum’s supply dynamics are complemented by its ever-growing ecosystem, with DeFi and NFTs continuing to create demand for ETH. However, it is essential to consider that while supply metrics are encouraging, demand must keep pace for positive price developments to continue. The overall condition of the asset is strong, with fundamentals supported by continued development and anticipation of the full transition to Ethereum 2.0.
Investors should consider Ethereum’s broader role in the blockchain ecosystem, its technical advancements, and the macroeconomic factors that influence the crypto market as a whole. As ETH If the asset retests the $2,000 threshold, its ability to hold above this level could be a bullish sign, but any failure could see the asset seek support at lower levels. Therefore, investors would do well to keep a close eye on market trends, on-chain metrics, and global economic indicators that could influence Ethereum’s trajectory.
Shiba Inu claws key resistance
The same piece Shiba Inu (SHIB) has been making headlines in the cryptocurrency market not only for its community initiatives, but also for its price action, which has recently shown signs of recovery. Technical analysis of SHIB/USDT on the daily chart indicates that SHIB is currently testing a critical resistance level which, if broken, could signal an uptrend.
For now, SHIB is hovering around the 0.00000850 mark. For SHIB to confirm a bullish breakout, it would need to close consistently above this level and maintain its bullish momentum. The coin has made higher lows, which is a positive sign for investors looking for a possible continuation of the uptrend. Conversely, if SHIB fails to break through this resistance, it could witness a retraction towards lower support levels.
General sentiment in the crypto market, particularly around meme coins, can be fickle, heavily influenced by social media and market trends. Shiba Inu Strong community support and the recent increase in burn rates have added a deflationary aspect to the token’s economics, but the overall impact on price remains to be seen.
Investors are advised to keep a close eye on volume changes and market sentiment indicators to gauge SHIB’s price action potential. Shiba Inu’s transition from a meme-based asset to an actually useful asset is underway, as evidenced by partnerships like the one with the Manny Pacquiao Foundation, which aims to use the Shibarium blockchain for charitable initiatives.
These developments paint an optimistic picture for SHIB, suggesting that its current market price could provide a lucrative opportunity for investors eyeing the next bull run, with the ambitious target price of $0.01 being a focal point for the community.
While the direct impact of burn rate on price remains a matter of debate, these concerted efforts by the SHIB community reflect a strategic approach to fostering both demand and long-term value of the token.