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Ethereum Price Showing Signs of Fresh Rally But This Resistance Is The Key

Ethereum price is moving higher above the $1,880 resistance against the US Dollar. ETH could surge toward $2,000 or $2,050 if it clears the $1,920 resistance.

  • Ethereum is moving higher toward the $2,000 resistance.
  • The price is trading above $1,880 and the 100-hourly Simple Moving Average.
  • There is a major bullish trend line forming with support near $1,885 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could gain bullish momentum if it clears the $1,920 resistance zone.

Ethereum Price Aims Higher

Ethereum’s price formed a base above the $1,800 support zone. ETH started a steady increase and cleared the $1,880 resistance zone, similar to Bitcoin at $28,800.

The price even climbed above $1,900 but faced sellers near $1,920. There was a downside correction but the bulls were active near $1,870. A low is formed near $1,867 and the price is now rising. There was a break above the 50% Fib retracement level of the recent decline from the $1,917 high to the $1,867 low.

Ether is now trading above $1,880 and the 100-hourly Simple Moving Average. There is also a major bullish trend line forming with support near $1,885 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

Immediate resistance is near the $1,905 level. It is close to the 76.4% Fib retracement level of the recent decline from the $1,917 high to the $1,867 low. The next major resistance seems to be forming near $1,920. A close above the $1,920 resistance zone could send Ethereum toward the $1,940 resistance. Any more gains could send Ether toward the $2,000 resistance. In the stated case, the price may even rise toward the $2,120 resistance.

Are Dips Supported in ETH?

If Ethereum fails to clear the $1,920 resistance, it could start a downside correction. Initial support on the downside is near the $1,885 level and the trend line.

The next major support is near the $1,880 zone or the 100 hourly SMA, below which ether price might drop toward the $1,840 support zone. Any more losses may perhaps take the price toward the $1,805 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is above the 50 level.

Major Support Level – $1,880

Major Resistance Level – $1,920

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Ethereum Transaction Fees Hit May 2022 Highs, What This Means For ETH?

Ethereum transaction fees are once again hitting highs last seen since May 2022. This development has raised concerns about the impact on the Ethereum network usage and its native cryptocurrency, ETH.

Ethereum, the second-largest crypto by market capitalization, is one of the leading decentralized finance (DeFi) and non-fungible tokens (NFTs) platforms. The network has been experiencing a surge in activity due to the increasing popularity of memecoins such as PEPE, which has caused fees to spike.

Rising Transaction Fees: A Cause For Concern

On May 2, the median average transaction fee on the Ethereum network soared to around 87 gwei, according to Dune Analytics. This spike was mainly attributed to the increased on-chain activity surrounding memecoin trading, according to Hildobby, a pseudonymous data researcher at VC firm Dragonfly.

Ethereum daily median gas price.

Memecoins such as Pepe the Frog-themed token have been enjoying a renaissance recently, with the token price soaring over 266 times in just four days in April. The memecoin’s market cap rose to over $500 million this week before crashing below $400 million again.

While this surge in activity may indicate increasing interest in the crypto market, it also highlights concerns about the network’s scalability and the impact of rising fees on users. High transaction fees can deter users from interacting with decentralized applications on the Ethereum network; as the fees increase, smaller users are priced out of the platform and its applications. 

Notably, the rise in memecoin trading activity, which increased the number of transactions on the Ethereum network, leading to a surge in fees, has also made decentralized exchanges (DEXs) on Ethereum experience the highest level of users since 2021. 

Dune Analytics data shows that Ethereum-based DEXs saw a surge in volume, with the total trading volume on these platforms surpassing $63 billion in April alone. This represents a significant increase from March, when the total trading volume was around $31 billion.

What This Means For ETH

It is worth noting that the rising transaction fees on the Ethereum network are seen as a disadvantage to the value of ETH, as users may seek alternative blockchains with lower transaction costs. An instance of this is the increasing interest in other L1 blockchains such as Solana (SOL), Cardano (ADA), Fantom (FTM), and so on.

However, Ethereum co-founder Vitalik Buterin recently suggested that the network could quickly scale up to 100,000 transactions per second. This could help alleviate network scalability concerns and reduce transaction fees.

Regardless, the increased activity may be a positive sign of growing interest in the crypto market; but it has an expensive price tagged. The rise in fees could discourage smaller transactions and lead to a decline in demand for ETH. 

Wwith Ethereum’s scalability improvements in the pipeline, it remains to be seen how the network will evolve in the coming months. Meanwhile, ETH price has declined 0.4% after a potential surge to trade above $2,000, last month.

Ethereum (ETH) price chart on TradingView

ETH currently trades for $1.872 at the time of writing. ETH has a 24-low of $1,855 and a 24-high of $1,919, according to data from CoinMarketCap. Regardless of the market decline, the asset’s trading volume has only ranged between $8 billion and $9 billion in the past two weeks.

Featured image from Shutterstock, Chart from TradingView

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Ethereum Price Just Reversed And Signals Fresh Run To $2,000

Ethereum price started a fresh increase above the $1,880 resistance against the US Dollar. ETH is rising and might soon aim for a move toward $2,000.

  • Ethereum is attempting a fresh increase above $1,880.
  • The price is trading above $1,880 and the 100-hourly Simple Moving Average.
  • There was a break above a key bearish trend line with resistance near $1,860 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move up if it clears the $1,920 resistance zone.

Ethereum Price Recovers Ground

Ethereum’s price remained well-bid above the $1,800 support zone. ETH started a decent upward move and was able to clear the $1,850 resistance, similar to Bitcoin at $28,800.

There was a break above a key bearish trend line with resistance near $1,860 on the hourly chart of ETH/USD. The pair even climbed above $1,900. A high is formed near $1,915 and the price is now consolidating gains. It is trading above $1,880 and the 100-hourly Simple Moving Average.

Ether is trading nicely above the 23.6% Fib retracement level of the recent increase from the $1,843 swing low to the $1,915 high. Immediate resistance is near the $1,915 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The next major resistance seems to be forming near $1,940. An upside break above the $1,940 resistance might send Ethereum toward the $2,000 resistance. Any more gains could send Ether toward the $2,050 resistance. In the stated case, Ether could even attempt a move toward the $2,120 resistance.

Are Dips Limited in ETH?

If Ethereum fails to clear the $1,915 resistance, it could start a downside correction. Initial support on the downside is near the $1,890 level.

The next major support is near the $1,880 zone or the 50% Fib retracement level of the recent increase from the $1,843 swing low to the $1,915 high, below which ether price might drop toward the 100 hourly SMA. Any more losses may perhaps take the price toward the $1,840 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is above the 50 level.

Major Support Level – $1,870

Major Resistance Level – $1,915

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This Meme Coin Created By GPT-4 Is Now Worth $40 Million, Here’s Why

As the meme coin season continues to unfold, there have been more novel ideas coming out of the space. The most recent one that is catching investors’ attention is a meme coin that was created using the famous ChatGPT-4 artificial intelligence (AI). As the coin continues to rally, let’s take a look at its inception and how it has been able to grow this much.

The Genesis Of Turbo Toad Token

About two weeks ago, a Twitter user that goes by Rhett Mankind posted that they had given GPT-4 a $69 budget with the instruction to create a meme token that become the most successful new meme token. What followed was an interesting thread sharing the process and creation of the token.

After going through different suggested names, Rhett finally settled on the name Turbo Toad Token (TTT) following a Twitter poll where the name emerged as the most popular. GPT-4 further provided the prompts to create AI images for the meme coin, as well as develop the tokenomics for it.

The coin was initially launched by Rhett but failed on the first try. However, the second iteration proved to be successful after a crowdfunding round carried out on Twitter. The website created was very basic but investors quickly latched on to the coin, pulling in around 50 holders with a 69 billion total supply on the first day. This is where it gets interesting.

AI-Generated Meme Coin Grows To $40 Million

The last iteration of the meme coin was launched on Sunday, April 29, and in the next three days, the coin exploded. First, TURBO launched at a price of around $0.00001773, data from Dextools shows, and it has already grown over 10x since then. Its holder base rose from 50 wallets on launch day to 4,474 at the time of writing, with over 14,600 transfers already carried out on the contract so far.

Interestingly, this meme coin has surged faster than some of its counterparts, now sitting at a $40 million market cap after touching a new all-time high of $0.00056 in the early hours of Wednesday. Likewise, its 24-hour trading volume on decentralized exchanges reached over $14 million, making it one of the most traded meme coins on the Ethereum network during this time period.

The project continues to rely on GPT-4 for improvement updates with the most recent recommendation being that more liquidity be added to the token. As a result, the liquidity for the token has grown to $1.4 million as the community clamored to add more liquidity.

As for the token, there is no telling where it goes from here due to the volatile nature of meme coins. However, the support from its community has already seen the meme coin more than double its value in a single day.

Crypto total market cap chart from TradingView.com (Meme coin)

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New “Ethereum Killer” SUI Launches Today, What You Need To Know

Today is the day, the long-awaited launch of the next “Ethereum killer” SUI is taking place at 8:15 am EST (12:15 UTC). From a purely technical standpoint, SUI does a few things differently compared to Ethereum, and therefore the expectations are high. In addition to the bankrupt exchange FTX, the project has numerous notable backers, including Circle, Binance Labs, and Electric Capital.

The designated proof-of-stake (dPoS) blockchain has an entirely new architecture that is supposed to outshine even the “high-speed” blockchain Solana. Many of Sui’s developers previously worked on the Meta (Facebook)-launched project Diem, which was scrapped some time ago due to regulatory headwinds.

The developers behind Sui, Mysten Labs, are one of two spinoffs from Diem, the second being none other than Aptos, which celebrated its mainnet launch last October. The former Meta employees founded Mysten Labs back in 2021 to develop Sui.

Why Sui Is Being Hyped

One of the things that sets the Sui blockchain apart is its tremendous processing speed of data, which no other layer-1 blockchain can match. In testing, Sui already brought it to more than 300,000 transactions per second (tps). This far exceeds even Solana (65,000 TPS). Likewise, Sui has a big speed advantage in transaction confirmation time.

While Solana needs around 20 seconds, Sui’s is only 450 milliseconds. In terms of scalability, Mysten Labs says that the system design is designed to allow horizontal scalability, which is not capped.

In addition to Sui’s high throughput and low latency, the project also touts a third advantage: the ability to process arbitrary amounts of data on chain. To do this, SUI makes use of a storage fund that redistributes fees for past transactions to future validators.

In other words, users pay upfront fees for both computation and storage. When storage requirements on-chain are high, validators receive additional rewards to offset their costs. Conversely, when storage requirements are low.

These three benefits are meant to take the use cases of blockchain technology to the next level.

Tokenomics

While IOUs were already trading on smaller exchanges ahead of the official launch of the blockchain at 8 am EST (2 pm CET), well-known crypto exchanges such as Binance, OKX, KuCoin, and ByBit have announced the listing of the new token as soon as liquidity requirements are met.

Binance, for example, said it expected to begin trading SUI/BTC, SUI/USDT, SUI/TUSD and SUI/BNB at 8:15 am EST.

SUI’s token supply has a cap of 10 billion tokens. As stated by the Sui Foundation, a portion of the total supply is expected to be liquid when the mainnet launches today. The remaining tokens will be transferred or distributed as future reward grants for shares in the coming years.

SUI tokenomics

In the Sui economy, the token has four purposes. It can be used to participate in the proof-of-stake mechanism. It is the asset required to pay gas fees to conduct transactions and other operations.

Furthermore, the token is an asset that supports the entire economy with its value. Ultimately, the token plays an important role in governance as it serves as the right to participate in voting on-chain.

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Ethereum Price Topside Bias Vulnerable If It Continues To Struggle Below $1,900

Ethereum price started an upside correction above $1,850 against the US Dollar. ETH could start another decline if it continues to struggle near $1,900.

  • Ethereum is attempting an upside correction above $1,850.
  • The price is trading below $1,880 and the 100-hourly Simple Moving Average.
  • There is a major bearish trend line forming with resistance near $1,870 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down if it stays below $1,880 and $1,900.

Ethereum Price Faces Resistance

Ethereum’s price managed to stay above the $1,800 support zone. ETH formed a base and recently started an upside correction above $1,850, similar to Bitcoin at $28,000.

The price was able to climb above the 23.6% Fib retracement level of the key drop from the $1,940 swing high to the $1,805 low. However, the price struggled to surpass the $1,880 resistance zone and failed to stay above the 100-hourly Simple Moving Average.

Ether is now trading below $1,880 and the 100-hourly Simple Moving Average. It seems to be facing hurdles near the 50% Fib retracement level of the key drop from the $1,940 swing high to the $1,805 low.

There is also a major bearish trend line forming with resistance near $1,870 on the hourly chart of ETH/USD. The next major resistance seems to be forming near $1,900. A close above the $1,900 level might start a fresh increase. In the stated case, the price could rise toward the $1,950 resistance.

Ethereum Price

Source: ETHUSD on TradingView.com

Any more gains could send Ether toward the $2,000 resistance. In the stated case, Ether could even attempt a move toward the $2,000 zone, above which the price could gain bullish momentum and even test $2,120.

Fresh Decline in ETH?

If Ethereum fails to clear the $1,880 resistance, it could start another bearish wave. Initial support on the downside is near the $1,840 level.

The next major support is near the $1,800 zone or the last swing low, below which ether price might drop toward the $1,765 support zone. Any more losses may perhaps take the price toward the $1,720 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is above the 50 level.

Major Support Level – $1,840

Major Resistance Level – $1,880

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Ethereum Sees Inflows Of $505M Into Binance, Sign Of Selling?

On-chain data shows Ethereum has observed massive inflows of $505 million into Binance during the past day, a sign that selling may be going on.

Ethereum Exchange Inflows Have Shot Up During The Past Day

According to data from the on-chain analytics firm Santiment, this increase in the supply on exchanges is the largest observed since the day before the Merge. The “supply on exchanges” is an indicator that, as its name already implies, measures the percentage of the total Ethereum supply that’s currently sitting in the wallets of all centralized exchanges.

Related Reading: Bitcoin Bearish Signal: Miners Continue To Sell

When the value of this metric increases, it means investors are depositing some coins to exchanges right now. This kind of trend can have bearish consequences for the asset’s price as one of the main reasons why investors transfer their coins to exchanges is for selling-related purposes.

On the other hand, decreasing values of this indicator imply a net amount of ETH is exiting these platforms currently. Such withdrawals can be a sign that the holders are accumulating the cryptocurrency, which can naturally be bullish for the asset’s value in the long term.

Now, here is a chart that shows the trend in the Ethereum supply on exchanges over the last few months:

Ethereum Supply on Exchanges

As displayed in the above graph, the Ethereum supply on exchanges has observed a sharp rise in the past day, meaning that investors have deposited a large amount of ETH to these platforms.

In the chart, there is also the data for another ETH indicator: the “exchange flow balance.” This metric measures the net number of coins that are flowing into or out of exchanges, meaning that the exchange flow balance essentially tracks the changes happening in the supply on exchanges indicator.

During the past day, this metric has seen a large positive value, suggesting that inflows have far surpassed the outflows in this period. According to the metric, around 320,000 ETH ($584.6 million at the current price) has entered into the wallets of the exchanges with this spike.

This net increase in the exchange supply is in fact the largest that the cryptocurrency has seen since September 14, 2022, the day before the transition towards the proof-of-stake consensus mechanism took place.

Interestingly, the vast majority of the inflow spike has been contributed by just one transfer, as data from the cryptocurrency transaction tracker service Whale Alert shows.

This transfer to Binance was worth almost $505 million, and it is one of the largest transactions between an unknown wallet and an exchange observed during the last five years.

It’s uncertain whether the whale has made this deposit with the intention to sell, or for using any other of the services offered by the platform. However, if selling is truly the goal here, then this massive inflow can be bad news for the asset’s price.

ETH Price

At the time of writing, Ethereum is trading around $1,800, up 1% in the last week.

Ethereum Price Chart

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Ethereum Price is Plunging, But It’s Too Early to Say Uptrend Is Over

Ethereum price extended its decline below the $1,850 level against the US Dollar. ETH could continue to move down if it stays below the $1,880 resistance.

  • Ethereum remained in a bearish zone and traded below $1,850.
  • The price is trading below $1,850 and the 100-hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance near $1,835 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down if it stays below $1,850 and $1,880.

Ethereum Price Extends Decline

Ethereum’s price settled below the $1,880 pivot level to move into a bearish zone. ETH extended its decline and traded below the $1,850 support, similar to Bitcoin at $28,000.

The price traded close to the $1,800 level. A low is formed near $1,805 and the price is consolidating losses. It is trading below $1,850 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance near $1,835 on the hourly chart of ETH/USD.

Immediate resistance is near the $1,835 level and the trend line. It is close to the 23.6% Fib retracement level of the downward move from the $1,940 swing high to the $1,805 low.

The next major resistance seems to be forming near $1,880 and the 100-hourly Simple Moving Average. The 50% Fib retracement level of the downward move from the $1,940 swing high to the $1,805 low is also near the $1,880 level.

Ethereum Price

Source: ETHUSD on TradingView.com

A close above the $1,880 level might start a fresh increase. In the stated case, the price could rise toward the $1,920 resistance. Any more gains could send Ether toward the $1,940 resistance. The main hurdle is now forming near the $2,000 zone, above which the price could gain bullish momentum.

More Losses in ETH?

If Ethereum fails to clear the $1,835 resistance, it could continue to move down. Initial support on the downside is near the $1,800 level.

The next major support is near the $1,780 zone, below which ether price might drop toward the $1,740 support zone. Any more losses may perhaps take the price toward $1,700 in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is below the 50 level.

Major Support Level – $1,800

Major Resistance Level – $1,880

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Ethereum Price Indicators Show Vulnerability to Bigger Correction

Ethereum price started a fresh decline from the $1,940 resistance against the US Dollar. ETH retested $1,825 and is showing a few bearish signs.

  • Ethereum struggled to settle above the $1,925 and $1,940 resistance levels.
  • The price is trading below $1,880 and the 100-hourly Simple Moving Average.
  • There was a break below a key bullish trend line with support near $1,895 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down if it clears the $1,800 support zone.

Ethereum Price Drops Again

Ethereum’s price started a fresh increase above the $1,850 zone. ETH struggled to settle above the $1,925 and $1,940 resistance levels, similar to Bitcoin at $29,500.

A high was formed near $1,939 and the price started a fresh decline. There was a sharp decline below the $1,900 and $1,880 levels. Besides, there was a break below a key bullish trend line with support near $1,895 on the hourly chart of ETH/USD.

A low is formed near $1,825 and the price is now consolidating losses. Ether price is now trading below $1,880 and the 100-hourly Simple Moving Average.

Immediate resistance is near the $1,850 level. It is close to the 23.6% Fib retracement level of the recent decline from the $1,939 swing high to the $1,825 low. The next major resistance seems to be forming near $1,900 and the 100-hourly Simple Moving Average.

Ethereum Price

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the recent decline from the $1,939 swing high to the $1,825 low is also near the $1,900 level. A close above the $1,900 level might start a fresh increase. In the stated case, the price could rise toward the $1,940 resistance. Any more gains could send Ether toward the $2,000 resistance.

More Losses in ETH?

If Ethereum fails to clear the $1,900 resistance, it could continue to move down. Initial support on the downside is near the $1,825 level.

The next major support is near the $1,800 zone, below which ether price might drop toward the $1,740 support zone. Any more losses may perhaps take the price toward $1,700 in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is well below the 50 level.

Major Support Level – $1,800

Major Resistance Level – $1,900

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Ethereum Shark & Whale Addresses Up 5.7% Over Past Year: Santiment

On-chain data from Santiment shows the Ethereum shark and whale addresses have registered a growth of 5.7% over the past year.

Ethereum Sharks & Whales Numbers Have Gone Up During The Past Year

According to data from the on-chain analytics firm Santiment, there are now around 380 more sharks and whales in the market compared to 12 months ago.

The relevant indicator here is the “ETH Supply Distribution,” which tells us about the total amount of Ethereum that each wallet group in the sector is currently holding. Addresses are divided into these “wallet groups” based on the number of coins that they are carrying in their balances right now.

The 10-100 coins cohort, for instance, includes all wallets that are holding between 10 and 100 ETH at the moment. The Supply Distribution metric for this specific group would measure the sum of the individual balances of all addresses on the network that are satisfying this condition.

Related Reading: Bitcoin Accumulation: HODLers Are Buying 15,000 BTC Per Month

In the context of the current discussion, the investors of interest are those holding at least 1,000 ETH, meaning that the relevant range here would be 1,000 to infinite coins.

Here is a chart that shows the trend in the Ethereum Supply Distribution for such investors over the last couple of years:

Ethereum Sharks And Whales

This wallet range of at least 1,000 ETH (worth about $1.9 million at the current exchange rate) includes two very important cohorts for Ethereum: the sharks and whales.

These investors can be quite influential in the market as they hold such large amounts in their wallets (with the whales naturally being more powerful than the sharks since they are the larger of the two. Because of this reason, their behavior may provide hints about where the market may be headed in the long term.

As displayed in the above graph, the Supply Distribution for the 1,000+ ETH range had a value of 6,712 a year ago. Since then, the indicator has enjoyed an overall uptrend and its value has risen to 7,092 today.

This implies that 380 new addresses belonging to sharks and whales have come up on the network during the last year, representing an increase of about 5.7%.

Ethereum saw a decline during most of the past year as the bear market tightly gripped the cryptocurrency. Overall, the asset is still down 35% in this period, meaning that these humongous holders have been buying while the value of the asset has been relatively low.

From the chart, it’s visible that the most significant buying spree in this period came just following the collapse of the cryptocurrency exchange FTX. This suggests that the sharks and whales saw the lows following this crash as a profitable buying opportunity.

And indeed, their accumulation there looks to have paid off so far, as those lows now appear to be the lowest point for this bear market. These holders have also continued to buy a net amount in the current rally so far, meaning that they are supportive of the price surge. Naturally, this can be a positive sign for bullish momentum in the long term.

ETH Price

At the time of writing, Ethereum is trading around $1,900, down 1% in the last week.

Ethereum Price Chart