The fact that Ethereum’s supply has now fallen below this cap is an inadvertent nod to Buterin’s vision of scarcity. It is a byproduct of Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism and the implementation of EIP-1559, which introduced a mechanism for burning transaction fees, thereby reducing the overall supply.
Moving averages: The chart indicates that the price of is currently above several moving averages, suggesting a bullish trend. The 50-day moving average (MA) appears to be above the 100-day and 200-day MAs, which is often interpreted as a positive sign.
Volume: There has been notable trading volume, which can signify strong market interest and support continued price movements.
Resistance and support levels: The price seems to have faced resistance at the higher levels but has found support at the lower end, indicating a potential consolidation phase.
Technical indicators: Indicators like the Relative Strength Index (RSI) may provide insights into whether ETH is currently overbought or oversold. The RSI appears to be in a moderate range, not indicating any immediate pressure toward either buying or selling extremes.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
