- Ethereum price unable to breach $400 resistance
- Ethereum whales driving ETH/USD pair
- Low bank interest rates positive for ETH and cryptocurrencies
After experiencing a sharp surge yesterday, Ethereum price is inferior by over 1% today. Ethereum has been among the most successful performers out of the top 10 cryptocurrencies since Thursday. The second-largest cryptocurrency is currently trading at $386, which is slightly below the recent high of $395. The ETH/USD trading pair is hovering within a short term upside breakout in the thick of major volatility.
The ETH/USD pair has been gradually recovering from the monthly lows of $310 on September 5. However, the Ethereum price has been unable to clear out the $400 resistance, which indicates bulls are reluctant at this point.
Ethereum whales driving the market
Large Ethereum holders, also referred as Ethereum whales normally just lie back in the deep of the market. Nonetheless, when they decide to move, the market flips out. According to data by blockchain intelligence firm, Santiment, the number of Ethereum holders with more than 100k ETH has been rising constantly since 11th September 2020. The number of large Ethereum holders rose from 157 to 160 within a week, indicating heavy investors are turning their attention towards ETH.
Furthermore, the rising number of fresh ETH addresses substantiates increased interest in purchasing ETH. The on chain metric dipped towards 76.3k addresses on September 14, and rose towards 106.8k by Sept.16. As a key indicator for ETH/USD movements, it may indicate that the bulls may gain momentum as fresh users begin transferring assets to the new wallets.
Ethereum price daily chart
The ETH/USD pair has been trying to make a comeback since diving towards $310 from nearly $500 price level a few weeks back. Currently, there are a couple of factors influencing the Ethereum price action today. To start with, Ethereum price is responding to the FED resolution on interest rates.
The Federal Reserve left banks interest rates unaltered and implied the rates are likely to remain unaltered for the next three years. For Ethereum and the other digital currencies, low interest rates present something good, since they mainly encourage people to bundle their cash into the financial markets instead of saving. For this reason, some of these funds are likely to find their way into the cryptocurrency market
Additionally, Fed’s low interest rates have a propensity to undermine the U.S. dollar. Ethereum is primarily traded against the U.S. dollar, and a weakened dollar is affirmative for the cryptocurrency market.
Second point, Ethereum is responding to the progress of ETH 2.0. The Ethereum Foundation recently announced the launch of Spadina, a new testnet with a three-day end of life. Finally, the ETH/USD pair is also responding to the hike in transaction fees. Data by Blockchair indicates the average gas price on the Ethereum blockchain is approximately 0.030806 ETH/transaction, the highest it has ever recorded.
What to expect from ETH/USD?
The daily ETH/USD chart indicates that ETH dropped from $488 sing highs to reach $310 swing lows in September this year. Ethereum is currently attempting to trim those losses and a bearish flag is shaping up which is normally a bearish pattern. Besides, Ethereum price action is moderately beyond both the 50 and 100-day EMA.