Ethereum (ETH / USD) price was in a tight range over the weekend as investors waited for the next catalyst. The cryptocurrency is trading at $ 3,333, which is slightly below its weekend high of $ 3,485.
Ethereum recovery rally stops
Ethereum is a blockchain project that has grown to become the most influential in the world. The network is used to build other blockchain products such as stablecoins, cryptocurrencies, non-fungible tokens (NFTs), decentralized finance products (DeFi), and games, among others. Today, it is responsible for more than 87% of most of the largest blockchain projects in the world.
Looking for quick news, tips, and market analysis? Sign up for the Invezz newsletter today.
Ethereum has been used extensively in the DeFi industry. Data compiled by DeFi Llama shows that the platform has more than 245 DeFi platforms that have a combined total locked value (TVL) of more than $ 134 billion. The second chain is Binance, which has 110 products and a TVL of more than $ 16.47 billion. The other leading chains such as Solana and Avalanche are substantially smaller than Ethereum.
Ethereum has done all of this despite its limitations. Its main limitations are that it is relatively slower than other blockchain projects, as it uses proof-of-work (PoW) technologies. It is also a congested network, which makes it substantially more expensive than other networks. Still, its biggest benefit was that it was one of the first platforms to offer these services.
There will be several key catalysts for the Ethereum price in October. First, its movement will depend on the performance of Bitcoin, the world’s largest cryptocurrency. The two have a close correlation.
Second, the price will react to market risks. Some of the main expected risks are the US debt ceiling and the Evergrande issuance. Finally, the Ethereum price will react to the mainnet update. which will take place in the last week of the month.
Ethereum price prediction
The four-hour chart shows that the ETH price encountered stiff resistance at $ 3.486 over the weekend. The price is slightly above the 25- and 50-day moving averages. It is also along the 50% Fib retracement level.
Therefore, while a double top is usually a bearish sign, there is a possibility that the currency will resume the uptrend. If this happens, the next key resistance level to watch in October will be $ 4,000, which is the next key resistance level.
Invest in cryptocurrencies, stocks, ETFs, and more, in minutes with our preferred broker, eToro
67% of retail CFD accounts lose money