There was a strong surge in Ethereum price above the $900 and $1,000 levels. ETH price broke the $1,100 level and settled well above the 100 hourly simple moving average. A new multi-month high was formed near $1,160 before the price corrected lower sharply.
The main resistance is now forming near $1,120, above which, ether price might rally significantly. If ethereum fails to clear the $1,080 and $1,120 resistance levels, it could correct lower. Initial support on the downside is near the trend line at $980.
Ethereum’s Bull Market to Continue
The crypto space appeared to have recovered slightly as most of the crypto assets including Bitcoin, Ethereum, XRP rebound with decent gains. One of the crypto analysts and influencer who names himself of Spencer Noon has listed 8 signs that point out towards a bull market ahead for ETH.
- Increase in Daily Active Address
Ethereum has reached close to 500k daily addresses on a 90-day MA, which has doubled in the past year.
- ETH-Most useful network in the world
Ethereum dominates the crypto space in terms of ‘fees paid’. It has outperformed Bitcoin in terms of a single day fee collection.
- High Demand for Ethereum Block space
Despite the current gas fees are very high, more than 80 billion gas is now being used on daily basis.
- More Stablecoins issued on ETH
The stablecoins issued on Ethereum have just gone parabolic since the start of the year 2020. At present more than $16 billion stablecoins have been issued on ETH.
- Growth in DeFi users
The boom in the DeFi space has led to a drastic increase in DeFi users. There are now nearly 1M DeFi users which have grown 10 times since the beginning of the year.
- Increased TVL in DeFi
The total value locked in DeFi space is now more than $14B. In fact, 5 different projects alone have TVL more than $1 billion each.
- ETH becoming an Economic Vaccum for all Assets
As many as 150k BTC worth more than $2 billion has been ported from Bitcoin to Ethereum. Hence becoming an economic vacuum for other assets initiated by Bitcoin.
- DEX compete with CEX
The DEX or decentalized exchange record nearly $20 billion daily trade volume in the last 30 days bringing the combined yearly total of $86 billion. Therefore giving a tough competition for any CEX or centralized exchanges.
Collectively, a small phase of dump or rather can be termed as a correction phase lived a short phase and most of the assets rebounded pretty well. In fact, in the coming days, all the major assets are expected not only to recover from losses but to surge to great highs.
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