Ethereum Support at $1,800 Holds Amid Privacy Tool Launch and Robust Layer-2 Activity
Ethereum (ETH) is currently trading above $1,800, marking a gain of over 1.8% in the past 24 hours, fueled by positive developments within its ecosystem. The launch of Privacy Pools, a new privacy tool backed by co-founder Vitalik Buterin, and robust activity on its layer-2 scaling solution, Base, appear to be contributing to the renewed bullish sentiment in ETH/USD.
Privacy Pools Launch on Ethereum Receives Backing from Vitalik Buterin
Launched on the Ethereum network, Privacy Pools are a fresh semi-permissionless privacy mechanism developed by Ethereum creators 0xbow.io. This instrument lets customers make private transactions and offers evidence showing their money is unrelated to illegal activity. Notably, Ethereum co-founder Vitalik Buterin made one of the first deposits—one Ether—to the network and openly backed the initiative.
Privacy Pools does screening tests to stop the introduction of money linked to illegal actors and batches transactions anonymously using “Association Sets”. This project seeks to “Make Privacy Normal Again” in line with regulatory compliance, therefore resolving past privacy issues and their possible use for money laundering.
Base Network Shows Strong Activity Against Negative Ethereum Sentiment
Though the general adverse market attitude toward Ethereum in recent times is present, Base, its layer-2 scaling solution, is showing notable activity. Base is handling around 6.9 million daily transactions, according recent figures. With users actively interacting with its scaling solutions like Base, which leads in value transferred and trading costs among its competitors, this great transaction volume illustrates the underlying strength and continuous use of the Ethereum ecosystem. This strong activity on Base emphasizes how likely it is to transform Ethereum’s scalability and support the expansion of distributed apps.
ETH/USD Technical Analysis: $1,850 Resistance After Bouncing Off $1,800 Support
Monday’s sales activity from short-term holders caused Ethereum to veer off the $1,800 support line. ETH is immediately confronting opposition close to the $1,850 level in the present recovery. Hourly chart analysis shows ETH falling below both the 100-hour simple moving average and $1,860. Still, there was a break over a connecting negative trend line with opposition at $1,810. ETH must clear the $1,850 and $1,880 resistance levels if it is to start a reasonable rise. Clearly over the $1,900 resistance, the price perhaps veers toward the $2,000 mark.
On the down side, should Ethereum fail to pass the $1,850 resistance, it may experience another fall with first support close to $1,800, then major support around $1,780 and $1,656. A firm drop below $1,800 might confirm a bearish continuation pattern and maybe result in support around $1,500. Whereas the hourly RSI is presently above the 50 zone, suggesting a possible change in momentum, the hourly MACD is losing momentum in the negative zone. ETH broke out of a declining wedge pattern everyday, however last week at the $2,070 resistance it was faced rejection. If the $1,800 support holds, a positive view still valid. Confirming a positive trend would be a breakout above $2,070 and a crucial declining trendline barrier.
Short-Term ETH Holders Capitulate While Some Whales Accumulate
Data shows that Ethereum short-term holders, displaying more risk-off attitude, realized lately almost $400 million in losses. Though this capitulation, ETH exchange reserves are still low, and the overall value staked has increased, suggesting that many investors favor long-term ownership even now. Fascinatingly, whales with between 10K and 100K ETH showed much different balance throughout the weekend, implying differing attitudes among various investment groups.
Ethereum Price Prediction: Real-World Adoption Key to $20,000 ETH Price Target
Ethereum investor Ryan Berckmans feels that ETH cannot attain a $20,000 price target without actual usage and more activity on the network. Although they are usually considered as a drawback, he contends that high fees show great faith in the usefulness of the network. To stimulate sustainable development and rebuild investor confidence, Berckmans stresses the need of more Layer 1 applications and improved connection with Layer 2 solutions.
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