23rd November 2021 | ZebPay Trade-Desk
As Ethereum (ETH) moves closer to the new proof-of-stake (PoS-) powered chain (ETH 2.0), the recent updates to its blockchain are making Ether (ETH) deflationary in nature. The upgrades have caused a deflationary issuance of ETH, where the burning of a portion of transaction fees has surpassed the issuance of new ETH through mining. This is an important factor that is likely to drive the value of the asset upward in the months and years to come after ETH 2.0 is fully operational.
ETH had been trading in an uptrend for the past three months and it made an all-time high of $4,868. However, the bulls were unable to push the prices above the psychological level of $5,000 as the asset faced stiff resistance at the top and witnessed a sharp correction. The price broke the uptrend line and the 20 Day Moving Average and fell almost by 18% making the low of $3,958. . Technically, on a weekly time frame, ETH has made a ‘ Cup and Handle’ pattern (Bullish Pattern) with a neckline at $3900 and if the prices hold and sustain above these levels then the bulls may resume the up move. A break or close below $3,900 may lead to the further downfall and the asset may slide to the next support level which is at $3,650
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