Ethereum’s price has plummeted below a crucial resistance mark of $3300. The corrective move would prerequisite to outline the bullish plot in the long-term run. The second half of the month hints at the compelling promise, hence, that bullish divergence may be happening anytime soon.
The star altcoin has dropped by 21% since the start of the new year, wrecking 200 days SMA at $3,300 and plummeting to $3098. Despite negative price action, the Ethereum ecosystem has managed to accomplish several things behind the scenes.
Etheruem Readying For an Incredible Bull Cycle!
Solana, Avalanche, Polkadot, and many other blockchains usually follow the upgrades of their leader Ethereum. Though these blockchains are cost–efficient and enable faster transactions, the second-largest crypto holds larger human capital which is more requisite. However, the founder Vitalik Buterin looks optimistic about launching a merger by July 2022 that aims to reduce gas fees and fasten transactions.
Furthermore, the altcoin has accomplished several things starting from January 1st. The below factors would act as catalysts for ETH price action in Q1!
ETH chain had over $10 billion in revenue and the founder’s revenue was more than $3.5 billion in 2021. Further, Ethereum has more human capital in terms of developers other than Polkadot, Cosmos, and Solana combined. The total revenue of ETH has surpassed $272 million in the first week of January. As the ETH merge is anticipated in the second half, staking is projected at 10.5% APY. The second most dominant crypto achieved 89x the fee revenue of Bitcoin in the last week. Since the roll-out of EIP-1559 in August, more than 1.4 million have been burnt. In addition, MyCrypto’s Gnosis chain implementation announced support to EIP-1559 and Polygonscan now supports ERC-1155. These upgrades thrive to resolve network congestion problems.
Collectively, the reversal in the market sentiments is expected to skyrocket the Ethereum price with the help of the above catalysts. If it bounces off the weekly support level at $3100, then a 20% resurgence looks imminent to claim its value above $3600.