Emily Walker
Ethereum ($ETH) is showing signs of recovery after staying below the $3,420 mark for an entire week. While the December high of $4,077 is still a significant hurdle, there is optimism that $ETH could surpass the crucial resistance point of $3,500.
This increase may be influenced by a 16.29% surge in the trading volume of Ethereum-based tokens within a 24-hour period. The total market capitalization of all Ethereum projects has now reached over $495 billion.
Could this rebound signal a true comeback? Let’s analyze the current price movements of $ETH.
Conflicting Indicators for $ETH, Yet A Positive Long-Term Outlook
The Average Directional Index (ADX) and Stochastic RSI indicate a weak trend for Ethereum. Thus, even if the coin starts to recover, reaching previous highs will take some time.
On the other hand, the Moving Average Convergence Divergence (MACD) indicator points to a bullish sentiment, supported by positive movement in the moving averages.
Recently, buyers managed to push $ETH to a price of $3,499, but it quickly retraced to around $3,440. Overcoming the $3,500 psychological resistance is essential for establishing a stronger upward trend.
If $ETH fails to breach the $3,500 mark, it may fall back to find support at $3,420, with another safety net at the 50% Fibonacci retracement level around $3,310.
Fortunately, several tokens within the Ethereum network are performing well. Projects like Dogecoin (DOGE), Hoppy ($HOPPY), Apu Apustaja ($APU), Neiro Ethereum ($NEIRO), and Pikaboss ($PIKA) are currently among the top gainers in the meme coin market.
The continued interest in Ethereum as a platform for meme coins ensures ongoing demand for $ETH, making its recovery inevitable, though it’s a question of timing.
The Dual Nature of Meme Coins
This market phase for meme coins appears to be creating two distinct categories: those that are simply pump-and-dump schemes and those that operate as utility tokens veiled in meme culture.
On the other hand, Shiba Inu ($SHIB), Pudgy Penguins ($PENGU), and Floki Inu ($FLOKI) are currently leaders in the second category. However, changes in leadership can occur, especially with the emergence of a new Ethereum-based project, the Meme Index, which will introduce the first meme coin index.
This index allows investors to diversify their meme coin holdings across four different baskets tailored to varying levels of risk, potentially enhancing returns while minimizing losses.
The $MEMEX presale has just begun, with the current price at $0.0148639. Early participants have already invested $1.5 million, and the presale is rapidly gaining traction.
Holders of $MEMEX tokens will have a say in major development decisions once the Meme Index platform launches. Additionally, they have the opportunity to stake their tokens with an impressive yield of 1,500% APY, presenting a unique chance to expand their investments.
Final Thoughts
Although the immediate price trend for $ETH is uncertain, its long-term outlook appears promising. The robust ecosystem of applications and innovative initiatives like the Meme Index are likely to sustain demand for $ETH moving forward.
As always, it’s crucial to conduct thorough research prior to investing in any project. The cryptocurrency market carries inherent risks, so only invest what you can afford to lose.