Ethereum Trades Above $2,000, Market Cap Surpasses Toyota Despite Low Transaction Fees
Ethereum (ETH) is currently maintaining its position above the $2,000 mark, trading mostly steady over the past 24 hours. Despite trading significantly below its 2021 all-time high, the Ethereum network boasts a market capitalization that surpasses several global giants, including Toyota and Disney, highlighting its intrinsic value and potential. This comes amidst fluctuating network transaction fees and a notable all-time high in stablecoin supply on the Ethereum blockchain.
Ethereum’s Market Dominance Matches Toyota and Disney
Though it dropped 57% from its November 2021 peak, Ethereum’s ETH/USD market value right now rests around $248 billion. This valuation highlights the enormous money committed in the network and the conviction in its future potential as a fundamental layer for distributed apps and finance, therefore positioning it around huge companies like Toyota ($249 billion). Analysts credit speculative interest, its freedom from conventional financial models, and its function as infrastructure for emerging financial technologies with this great value.
Trump-Backed Stablecoin USD1 Launches on Ethereum Alongside BNB Chain
Notably, former US President Donald Trump’s cryptocurrency company World Liberty Financial (WLFI) has debuted USD1, a US dollar-pegged stablecoin on both the Ethereum and BNB Chain networks. WLFI has said that although the stablecoin has a total supply of more over $3.5 million, it is not now tradeable. This launch contributes to the expanding stablecoin ecosystem on Ethereum, which lately hit a record high in overall supply.
Ethereum Stablecoin Supply Hits All-Time High, Signaling Potential Bullish Sentiment
Positively, the Ethereum network now has an all-time high stablecoin supply of $132.4 billion. Many times, this rise in stablecoin supply is seen as a positive indication of more liquidity and possible purchasing pressure as investors keep stablecoins on the network, maybe waiting for chances to use them into other crypto assets, including ETH itself.
Contrasting Signals: Low Transaction Fees Raise Concerns Despite Bullish Stablecoin Supply
Fascinatingly, this positive signal from stablecoin supply coincides with a period of declining transaction fees for Ethereum since June 2020. Grayscale Research notes that ETH’s underperformance in the current market cycle can be ascribed in part to this drop in fees. Reduced daily ETH burned by lower fees causes a little inflationary tendency in the ETH supply, perhaps influencing staking payouts. Still, some analysts see this as a positive indication of the market emphasizing fundamentals.
ETH/USD Technical Analysis: ETH Bulls Aim to Conquer $2,111 Resistance Amidst Low Transaction Fees
From a technical standpoint, Ethereum bulls are now trying to raise the price above the 20-day EMA, which comes around $2,057, most importantly from a breakdown level of $2,111. A successful movement over this $2,111 mark would indicate a rejection of the previous breakdown and open the path for a rally towards the 50-day SMA, presently at $2,356, with a goal of $2,550 thereafter.
Still, bears are supposed to defend the $2,111 mark. Should the bulls fail to surpass this barrier, a quick pullback below $1,750 could result, therefore restarting the downslope towards the next support level at $1,550.
Key Resistance and Support Levels to Watch for ETH Price Action
According to technical study, Ethereum encounters instantaneous opposition close to the $2,020 and $2,040 levels. A clean break above $2,040 might drive the price toward $2,120 and maybe $2,250 in not too distant future. On the down side, main support levels to monitor are $1,980, then $1,950 and $1,880.
Moreover, study of a rectangle channel shows that Ethereum lately tested the $2,069 resistance. A company that moves above this threshold could have a test of $2,267. On the other hand, a rejection at $2,069 might cause the price to revert toward the $1,818 support level.
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