Since 2023, the price of Ethereum’s native token Ether has increased by about 35%, but multiple attempts to break through the psychological resistance level of $2,000 have been bearishly rejected. Analysts believe that there are three reasons why Ethereum price failed to decisively return to $2,000: 1. Ethereum price depicts a bear market cycle fractal and cannot break through $2,000 in 2023, similar to the bearish rejection near $425 in 2018-2019; 2. The U.S. dollar and Bitcoin are strong, and the strong U.S. dollar has suppressed demand for Ethereum in recent months; 3. Ethereum network activity has declined. As of 2023, the total value locked (TVL) of the entire Ethereum ecosystem has increased from 18.41 million ETH dropped to 12.79 million ETH.
Technical analysis shows that Ethereum price may rebound towards the 50-day exponential moving average near $1,665. However, from a broader perspective, ETH/USD has been in a persistent bearish pattern, known as an ascending triangle. In the short term, a break above the 50-day EMA could see ETH’s price rise towards the triangle’s upper trendline near $1,730 in October 2023, in line with the 200-day EMA.
Technical analysis shows that Ethereum price may rebound towards the 50-day exponential moving average near $1,665. However, from a broader perspective, ETH/USD has been in a persistent bearish pattern, known as an ascending triangle. In the short term, a break above the 50-day EMA could see ETH’s price rise towards the triangle’s upper trendline near $1,730 in October 2023, in line with the 200-day EMA.