The Ethereum token, Ether (ETH), has seen growth of around 35% so far in 2023, but its attempts to break the psychological resistance level of $2,000 have been met with strong bearish rejections multiple times.
Let’s take a closer look at the likely reasons why Ethereum price has failed to decisively retake $2,000 since May 2022, as well as the potential of the crypto aggregator API, crypto drop, 1inch crypto, and best crypto apps.
Web 3.0, also known as the “Crypto and NFT” revolution, has been a major driver of the crypto market, and the best crypto aggregator apps are providing users with the opportunity to trade in multiple markets simultaneously.
However, the crypto market is inherently volatile, and crypto crashing can cause major losses for investors. Therefore, it is important to be aware of the risks associated with crypto trading and to use the best crypto apps to monitor the market and make informed decisions.
Ethereum price paints bear cycle fractal
Ethereum’s inability to climb above $2,000 in 2023 looks like the bearish rejection near $425 in 2018-2019.
In both situations, Ether is in a recovery process and is attempting to close above its 0.236 Fib line of the Fibonacci retracement graph.
In 2018-2019, the 0.236 Fib line was near $425 and it was a major factor in preventing Ether’s recovery attempts. In 2023, the same line is near $2,000, again serving as a selling area and, therefore, pushing ETH’s price down.
Stronger U.S. dollar, Bitcoin
The U.S. dollar’s appreciation has had a negative effect on Ethereum’s demand, making it difficult for it to close above $2,000.
The prevailing inverse correlation between the top cryptocurrencies and the dollar has been the main cause. In 2023, the weekly correlation coefficient between Ether and the U.S. dollar index (DXY) has been consistently negative, as seen below.
Also, Ethereum has been outperformed by Bitcoin in 2023 due to the ongoing spot Bitcoin ETF hype. For instance, the widely-tracked ETH/BTC pair is down 20% year-to-date (YTD).
Additionally, the net capital held by Ethereum-tied investment funds has decreased by $114 million so far in 2023, according to CoinShares’ weekly report. In comparison, Bitcoin-based funds have attracted $168 million in the same period.
The 1inch crypto, crypto aggregator app, and other best crypto apps have seen a crypto drop in the crypto and NFT space, as crypto crashing has become more common.
Ethereum network activity dips
The total-value-locked (TVL) across the Ethereum ecosystem has dropped from 18.41 million ETH to 12.79 million ETH so far in 2023, resulting in lower yields for investors, as JP Morgan analysts also warned recently.
The declining TVL has been accompanied by a decrease in the Ethereum network’s gas fees, which hit a yearly low on Oct. 5.
Dapp Radar also reported that Ethereum’s NFT volumes and unique active wallets have decreased by 30% and 16.5% in the last 30 days, respectively.
This includes drops in the key metrics of popular crypto apps such as Uniswap V2, 1inch Network, and Lido, the best crypto aggregator.
Ethereum technical analysis
Ethereum price technicals indicate a possible rebound towards its 50-day exponential moving average (50-day EMA; the red wave) close to $1,665.
On the other hand, ETH/USD has been forming an ascending triangle, a bearish continuation pattern.
If the triangle’s lower trendline is breached, the crypto drop could be as much as the pattern’s maximum height, with ETH’s price falling to $1,465 or $1,560 by October 2023, depending on the breakdown point.
In the short-term, if the 50-day EMA is breached, ETH’s price could rise to the triangle’s upper trendline near $1,730 by October 2023, coinciding with the 200-day EMA (the blue wave).
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