As the cryptocurrency market recovers after last week’s doldrums, the focus is on the Ethereum price.
In the last trading week, not only has its fundamentals been a source of discussion but the performance of the second most valuable coin remains a drawer.
Week-to-date, the ETH price is stable. Noticeably, bulls are reversing losses of the week ending June 21, 2020.
Ethereum transaction count at a new high
As such, the main highlight is the coin’s stellar performance.
Bouncing from $230, the Ethereum price has been buoyed by several on-chain and fundamental factors.
The main highlight is the increasing demand for the network over Bitcoin. For the first time this year, Ethereum transactions rose a new high, exceeding those of Jan 2018.
Block space available at a premium
As observed, Ethereum’s popularity is mostly driven by its utility.
The proliferation of decentralized applications (dApps) and the issuance of Stablecoins mean block space is available at a premium.
Ethereum blockspace has been more valuable than Bitcoin blockspace for the past 14 days
If Bitcoin and Ethereum had zero issuance then Ethereum would now be the highest security chain
Even under the fixed cap game Ethereum beats Bitcoin
Many Bitcoiners will ignore this tweet pic.twitter.com/UL7HL10v5p
— Ryan Sean Adams – rsa.eth 🏴 (@RyanSAdams) June 23, 2020
Presently, it is more expensive to transact in Ethereum than Bitcoin as average medium fees show.
DEX volumes soared
This—coupled with the development of complex Ether derivatives products over the past months, has also pumped ETH trading volumes at decentralized exchanges.
Yesterday, the total ETH trading volumes at DEXes printed a new high as traders poured in aiming to capitalize on rising prices.
— Anthony Sassano | sassal.eth 👨🌾 (@sassal0x) June 23, 2020
Ethereum price analysis
Ethereum price is now up six percent in the last trading week. It has marginally gained against Bitcoin (BTC), adding four percent.
In the daily chart, candlestick arrangement suggests bulls. Already, there is a double bar bullish reversal pattern printing from June 11, 2020 lows of $230. This support level is significant as it marks the low of the last 13 days.
The failure of sellers to press lower and conclusively close below the main support trend line invalidate bears of June 11, 2020. As such, the double bar bear reversal pattern of June 10-11, 2020 is likely null.
Since the Ethereum price is now trending above the middle BB and June 22, 2020 trading volumes were decent, the immediate resistance level is at $250 or June 2020 highs. A break above this mark could see ETH rally to $280—or February 2020 highs.
In the meantime, the general expectation within Ethereum’s trading circles could see price retest $250. This may provide an opportunity for aggressive traders.
Any slip below $230 will pour cold water on ETH bulls’ prospects.
Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.