Following the successful implementation of Ethereum‘s Dencun upgrade, the prominent cryptocurrency faced a significant sell-off, resulting in a 5.3% drop in value. At the time of reporting, Ethereum’s worth dipped to $3,700, and its market capitalization hovered just below the $450 billion mark. This downturn coincided with a notable increase in the daily trading volume on Ethereum, which escalated by 45% to a substantial $32.29 billion.
Ethereum’s Market Movement
Despite a brief stint above the $4,000 mark, Ethereum succumbed to pressure and dropped below several pivotal support levels including $3,920 and $3,850, mirroring Bitcoin‘s recent price movements. Eventually, Ethereum’s price slid below the $3,680 support threshold, continuing to fall to $3,625 before stabilizing its decline. Currently, analysts identify $3,850 as a key resistance level for the cryptocurrency.
Should Ethereum manage to break through the $3,880 resistance, the path could clear for a potential climb back to the $4,000 region. However, failure to overcome the resistance at $3,850 may trigger a more severe price retreat. Key support levels to watch are $3,680, with $3,600 as a significant support zone and $3,500 as a further critical threshold.
Notable Developments and Analyst Insights
In the short term, the $3,600 to $3,700 range could act as a potent buying area for Ethereum, according to noted crypto analyst CrediBULL Crypto. In parallel, blockchain analysis firm Elliptic uncovered a major $12 million Ethereum transaction linked to the infamous Lazarus Group. The stolen funds, laundered through Tornado Cash, have been traced back to an attack on the HTX and Heco Bridge in November, which resulted in over $100 million in losses.
On-chain data from Santiment highlights a significant reduction in Ethereum’s network transaction fees since its peak in October and November 2021. With the transition to Ethereum 2.0, the network’s average gas fees have plummeted to $9.35, indicating a marked improvement in network efficiency and cost reductions.