- Ethereum Battles Key Resistance at $2,250: After dropping to $2,080, ETH is attempting a rebound, but failure to hold $2,100 support could see it drop further to $1,600-$1,700.
- Mixed Market Sentiment: Optimism surrounds the April 8 Pectra upgrade and the Ethereum Foundation’s new advisory group, but declining on-chain volume and TVL are fueling bearish pressure.
- Ethereum’s Fate Hinges on Market Trends: If ETH holds above $2,100 and Pectra delivers on its promises, a rally could follow. Otherwise, further downside remains a risk.
Ethereum
Ethereum ($ETH) is a decentralized blockchain platform that supports smart contracts and dApps. Launched in 2015 by Vitalik Buterin, Ethereum utilizes a Proof of Stake consensus mechanism and the EVM to power DeFi and NFTs.
Price Movements
Currently trading at $2,210 with a market cap of $266.5 billion, Ethereum has seen considerable price swings. It reached a high of $4,070 but dropped as low as $2,080 recently, reflecting its struggle to break through resistance levels and maintain upward momentum.
Credit: CoinGecko
Price Predictions
$ETH is currently attempting to bounce back after a major downturn that saw the price dip to $2,080. It briefly broke through resistance at $2,100 and has since gained some ground but is now facing resistance at $2,250. Analysts note that the $2,100-$2,250 range has historically been a strong buy zone. However, bearish sentiment still dominates, and there is a possibility of further downside, potentially dropping into the $1,600-$1,700 range before a change in trajectory is likely.
Market Sentiment and Developments
Market sentiment for Ethereum is mixed. On the positive side, the Ethereum Foundation announced the creation of the “Silviculture Society,” an advisory group aimed at preserving Ethereum’s core values and addressing concerns over leadership. Additionally, optimism is building around the upcoming Pectra upgrade, set to launch on April 8, which promises enhanced scalability and lower transaction fees.
On the other hand, declining on-chain volume and total value locked (TVL) have raised concerns and contributed to bearish sentiment. This combination of positive developments and negative on-chain metrics has created a cautious outlook among investors.
Future Outlook
Looking ahead, Ethereum’s next move will depend on its ability to hold above key support levels and the market’s reaction to the Pectra upgrade. If the upgrade delivers on its promises, it could reignite bullish momentum.
