Ethereum Completes a Retest, ETH’s Liquidation Line at $2k

Ethereum (ETH) Could Bottom Up Above $1.5k in a W-Formation
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Ethereum, like the broader crypto market, is relatively steady, adding three percent in the past 24 hours.

Despite recent losses, the coin is up a solid 16 percent week-to-date and edging higher on trader optimism and changing fortunes across the crypto markets.

From the daily chart, ETH may be down but is boxed within a bullish breakout formation, pulling back from $2k.

The inability of sellers to force prices below $1.77k signals strength. Nonetheless, the medium-term trajectory would be defined by how prices react at around last week’s highs and $1.7k on the lower end.

44 million Live Contracts Deployed on Ethereum

Smart contracts continue to prove revolutionary, considering their many applications across the board. Ethereum was the first network to prove how valuable the innovation is.

So far, Ethereum remains the home of DeFi and TVL, considering total value locked (TVL) amongst DeFi protocols and the total trading volumes of NFTs.

According to new findings, over 44 million live contracts have been deployed on the network.

Notably, the total number surged above 10 million for the first time in 2019, rising another 50 percent to 15 million in 2020 before doubling to 30 million by the end of last year.

Out of the 44 million live contracts, it was discovered that half, 21 million, were destroyed to save on Gas.

Ethereum Price Analysis

Ethereum Completes a Retest, ETH’s Liquidation Line at $2k

Ethereum is steady weak at spot rates, adding three percent on the last trading day. Even so, the inability of sellers to rapidly unwind recent gains is a net positive. ETHUSDT prices are within a bullish formation, defined by the wide-ranging bull bar of August 10.

Currently, there is a double bar formation suggesting weakness due to the August 14 bearish engulfing bar. The immediate resistance is $2k, a level that bulls must overcome to validate the buy trend continuation. Because the uptrend is valid, aggressive traders may look to double down, riding today’s gains.

Since bulls rejected bear attempts and prices are floating higher, ETH may have completed a welcomed retest. Nonetheless, any slump from spot rates below $1.7k invalidates this bullish preview. If ETH drops below May 2022 lows, the coin may fall to $1.55k, the 38.2 Fibonacci retracement line of the June to August 2022 trade range.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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