Ethereum Gains Flattens Despite Continuous Bullish Accumulations

By Godfrey Benjamin
Published August 21, 2021 Updated August 21, 2021
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Ethereum Gains Flattens Despite Continuous Bullish Accumulations

By Godfrey Benjamin
Published August 21, 2021 Updated August 21, 2021

Unlike the majority of altcoins with huge growth trends in the past days, the price gains in Ethereum (ETH) is currently flattened, despite unique fundamentals inherent in the world’s most used blockchain network. At the time of writing, the digital currency is up 0.74% and is changing hands at $3,277.17 according to CoinMarketCap. 

For the past seven days, Ethereum has kept its price range between a low of $2,959.03, and a high of $3,333.99. The positive trading range in the past month is not remarkably divergent, suggesting that Ethereum bulls are comfortable keeping prices above the core psychological $3,000 support zone. 

Ethereum’s Fundamentals are Strong

Earlier this month, the Ethereum network witnessed a significant network upgrade dubbed EIP 1559 upgrade or the London Hardfork. This upgrade introduced notable changing bordering of fee structure and also switched the Ether coin into a deflationary asset in which a steady amount of the digital currency is burnt and removed from circulation.

At present, as much as 71,749 Ether has been burnt to date, a figure worth about $235.1 million using the current price of ETH. This deflation is expected to drive in scarcity, and showcase a corresponding impact on the price of Ethereum, however, this has played little role in stirring an uptick in the cryptocurrency.

On-chain data from Glassnode also suggests continuous accumulation of Ethereum. According to the data analytics platform, the number of addresses holding more than 32 coins just have surged to a 3-month high of 107,984. 

The ensuing stackup which is expected to conplement the token burning has always played little role in pushing Ethereum towards more ambitious price levels in the past days.

Ethereum Price Outlook

The ETH/USD 4 hour chart as seen on TradingView shows a flattening indicator growth. Amidst the broad stretch of the price to break the resistance at the $3200 price level, the trio of the 9-day Moving Average, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are flattening at the top, to show a potential price reversal.

ETH/USD 4h Chart (Coinbase) Source: TradingView

As long as Bitcoin is driving the growth of altcoins, any price consolidation in Ethereum is poised to be short lived, as the coin will ride on the broader market strength to pick new price gains provided the on-chain metrics are sustained.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Godfrey Benjamin
177 Articles
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

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