Ethereum is an open-source, decentralized blockchain that enables smart contracts’ creation and dApps. It was created in 2015 by Vitalik Buterin with the native cryptocurrency named ETH. Ethereum allows developers to build decentralized apps that can operate on the network without any downtime, censorship, or third-party interference.
In 2022, ETH made a major turnaround to switch towards a Proof of Stake algorithm, cutting down on the need for miners. The intention was to save on energy without transferring the decreased transition cost to the actual users of its network.
The price action of this token had reached massive lows of under $1000. The token jumped significantly in January 2023 while breaching the massive psychological resistance of the 100 and 200 EMA curves. ETH surpassed the $200 billion mark for a small duration, but sellers have again taken control of this token.
ETH price action has now witnessed a major resistance based on price action near $1664, while the token has overcome 100 EMA and 200 EMA resistances very smoothly. Read our Ethereum price forecast to know whether the token will surpass the $1664 resistance or not!
The $1664 has established itself as a strong resistance, with support available at $1553. The short trading range has created a sense of consolidation, forcing a decline in buying rallies. The RSI indicator showcases the buying sentiment for Ethereum has dropped from the overbought zones of 75 to the near positive zones of 58.
The sudden decline confirms ETH profit booking has begun while buyers are not waiting for another breakout above the immediate resistance of $1664. The breakout could push ETH beyond $2000 as the resistance has already been overcome before reaching this level.
When combined with the RSI indicator, the MACD indicator underwent a bearish crossover, creating trouble for buyers in the short term. The opportunity for buying would present itself with a prolonged consolidation. Hence, the upcoming Ethereum resistances are highly active at $1780 and $1980.
The intensity of breaching the 200 EMA should allow buyers to push the ETH token even in case of decline. In the case of heavy selling, considering the budget sessions of major democracies, we can expect ETH to decline to $1400.
