ETH/USD Price Analysis: Ethereum Bulls Capitalize After Receiving Chunky Buying Interest in Known Demand Zone | Hacked: Hacking Finance
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- ETH/USD maintained decent gains in the session on Tuesday, with the bulls attempting to break down resistance barriers.
- Ethereum DApp usage is continuing to lose ground versus peers Tron and EOS.
ETH/USD: Recent Price Behaviour
Over the past few sessions, the ETH/USD pair has remained somewhat elevated after receiving decent buying interest within a known demand zone. The area should be noted tracking from $106 down to the psychological $100 mark. Most recently, buyers were found here at the back end in December and on several occasions in January. Between 28th January and 7th February, the price had been ranging and retesting the big $100 area to the downside.
During the latter stages of Tuesday, the price was seen holding gains of over 2%. Market bulls have managed to further capitalize on the chunky jump out of the above-detailed demand zone. ETH/USD is now seen up some 20% over the past five sessions, moving to the highest level in almost four weeks. Despite the decent move north, there is still room for further upside upon the bulls breaking down near-term barriers of resistance.
Ethereum DApp Usage Losing Ground
Ethereum DApp usage is falling, as proven by a recent study. According to research from LongHash, just 10% of Ethereum DApps have been active in any single day. The number is reported to be around 180 supposedly active out of a total 1,812 Ethereum DApps.
Further within the LongHash findings, it was interesting to note the decline in transactions. The use of the same data set showed that 13% of the applications utilized had greater than 100,000 transactions in the past 24 hours whereas 19% saw a range of 10,0-100,000.
Looking into data via DappRadar, it demonstrates just how much Tron and EOS continue to outperform the Ethereum network. At the time of writing, ETH only made three appearances in the top-50 DApps by total usage.
Technical Review – ETH/USD
In terms of upside resistance, the bulls must break down supply which is seen tracking from the $130-$135 range. ETH/USD has not above this area since 10th January when the entire cryptocurrency market came under heavy selling pressure. Should the bulls manage to break down this mentioned zone, then another wave of buying pressure will likely be seen. However, further sellers observed from $140 up to $150. Aside from this, then there isn’t too much in the way of a move back towards $160-$165 territory, the high area of 2019.
Lastly, with regards to support, a decent daily area of comfort can be noted from $118-$115. Further south, ETH/USD will run the risk of being forced to retest the $100 mark to the downside again. A breakdown of this would re-expose the 2018 low area which is seen down at $83, where the price bottomed in December.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
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Ken Chigbo
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.
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