Ethereum has been under the radar of a massive volatile session as the price trend has displayed unexpected fluctuations in the last few days. Ethereum, the second-largest crypto by capitalization, has been on a rollercoaster ride after the crypto market caught the attention of the SEC’s eagle regulatory eyes. However, despite intense bearish pressure from sellers, the asset has been performing relatively well as it holds its support level, sparking a glimmer of hope for investors.
Ethereum Investors Remain In FUD Situation
Currently, the topmost worries of investors revolve around the lawsuits and legal actions taken by the U.S. Securities and Exchange Commission against various crypto firms. Kraken’s decision to end its staking-as-a-service program, the BUSD controversy, and PayPal’s reported suspension of its stablecoin project due to regulatory apprehensions are some of the most notable incidents that have sent shockwaves to the ETH price chart.
Santiment, an on-chain crypto analytics firm, has shared data indicating that the quantity of ETH available on exchanges is continuously decreasing. The firm noted that there had been a steep 37% decline in ETH held on exchanges since the post-merge event.
However, this continuous decline in exchange supply is taken as a positive indicator as there is less availability of ETH for trading or selling, which is considered a bullish sign for cryptocurrency.
Moreover, the Ethereum community is optimistic about the upcoming Shanghai upgrade as developers revealed the pre-launch of the Shanghai upgrade on the Zhejiang testnet, which is the first of the three testnets that control the Shanghai upgrade. As the Shanghai upgrade is approaching fast and set to go live in March, it fills investors with bullish goals.
Ethereum Awaits Upward Correction
Ethereum has finally entered an upward correction after it successfully maintained its momentum above its immediate support level. Analysts believe that bulls are back in a stable price range, which will bring enough liquidity to keep pushing ETH prices toward the North.
As of writing, Ethereum’s price trades at $1,576, with a gain of nearly 5% in the last 24 hours. Analyzing the daily price chart, ETH’s price is attempting to break its 23.6% Fib level at $1,590. If ETH breaks the consolidation range above $1,600, it may pave its way to the next resistance level of $1,700. Moreover, the RSI-14 trades in a buying region as the trading volume witnesses an uptick.
However, if ETH fails to clear the $1,590-$1,600 resistance region, it may again begin another decline as sellers may find an upcoming profitable opportunity to dip of $1,450 or near the 100-hourly SMA. Any more losses in bullish sentiment may plunge the asset to the bottom level of $1,380.
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