Ethereum (ETH) Price Tanks 7.8% A Day After Dencun Upgrade, What’s the Next Support?

1 month ago 24

The world’s second-largest cryptocurrency Ethereum (ETH) has come under very strong selling pressure a day after the successful implementation of the Dencun upgrade. At press time, the Ethereum (ETH) price is down 7.8% at a price of $3,669 with a market cap of just under $450 billion. Also, the daily trading volume in Ethereum has surged by 45% to $32.29 billion.

Ethereum (ETH) Price Levels to Watch Ahead

The Ethereum price faced resistance at the $4,000 level and initiated a downward correction, mirroring Bitcoin’s movement. ETH dipped below crucial support levels at $3,920 and $3,850, signaling a short-term bearish trend.

It briefly dropped below the $3,680 support area, reaching a low of $3,625 before consolidating losses. Currently, a significant bearish trend line is forming with resistance around $3,850. The primary resistance levels are near $3,850 and the trend line, close to the 50% Fibonacci retracement level from the recent swing high at $4,083 to the low of $3,625.

If the Ethereum (ETH) price surpasses the $3,880 resistance, it may regain bullish momentum, aiming for the $4,000 level. Conversely, failure to break above $3,850 could lead to further downside movement. Initial support is at $3,680, followed by a major support zone near $3,600, with a potential downside target at $3,500. A decisive break below $3,500 might trigger a decline toward $3,350.

Popular crypto analyst CrediBULL Crypto explained that the range of $3600-$3700 for Ethereum is likely to attract significant buying interest in the short term.

Furthermore, blockchain analytics firm Elliptic uncovered a substantial transaction involving $12 million worth of Ether by the Lazarus Group. This transfer was facilitated through Tornado Cash, a cryptocurrency mixer. Despite being subject to sanctions, the North Korean hacker organization has resumed its use of this platform.

The funds are traced back to a cyber-attack on HTX and the Heco Bridge in November, orchestrated by the Lazarus group. This attack resulted in significant losses amounting to $100 million for the affected platforms.

ETH Gas Fee Drops Under $10

According to Santiment, an on-chain data provider, the current scenario of Ethereum surpassing a $4,000 market value differs from October and November 2021. Today, the network’s transaction costs are significantly lower, standing at less than 1/6th of the previous levels. With gas fees averaging $9.35, this improvement can be attributed in part to the enhancements in network fees following the transition to Ethereum 2.0.