Ethereum, the second largest cryptocurrency, once again broke its all-time high as high as $4477.
Although Ethereum has been criticized for its network fees, it still remains the most used network. It continues to give confidence to Ethereum investors, who have received many updates on the way to Ethereum 2.0 and Proof of Stake.
Especially after the EIP-1559 update, the burning mechanism completely eliminated the inflationary pressure on Ethereum. In addition, since a large part of the Ethereum supply was destroyed by burning, it also reflected positively on the price.
After the EIP 1559 update, the amount of burned Ethereum exceeded 730,000. This means that about $3.2 billion worth of Ethereum has disappeared. Demand for Ethereum and network activity continue to increase, while decreasing supply is making a positive contribution to the price. It seems likely that the uptrend in Ethereum will continue throughout the Ethereum 2.0 journey.
When we look technically, we observe that there is a very positive picture in the week. In Ethereum, which started price discovery after ATH, the $3900 region will be our support level, while our target will be the $5900 region. Since this level is the target area of the cup-handle formation, we can see some pullback from these levels.
If we see a pullback in Ethereum due to a selling wave in Bitcoin in the coming days, the $3900 levels could be a good buying opportunity. Our short-term support level will be $4170.
*Not Investment Advice.