Ethereum has risen beyond a major resistance area of $1,982 to $2,044. During this time, 1.67 million wallets received 38.7 million ETH. This progress helps Ethereum reach new annual peaks with few hurdles and great backing. Ethereum’s ability to stay above $2,000, despite a retest at $1,930 on November 21, explains the current price trend. The price of Ethereum rose 2.5% the week before, increasing market capitalization by 0.5%.
Ethereum Hits $2,000 Mark Amid Growing Network Activity
The increased trend is due to improved DApp metrics, higher protocol fees, and Ethereum’s prominence in the NFT market. Ethereum’s price rose above $2,000 because of increased network activity and the prospect of a spot ETF. Ethereum is presently trading at $2068, up 0.1% daily as of November 23rd. The weekly rise is 4.7%, but trade volume fell 36% to $7.7 billion.
Technical indicators show that Bollinger bands, which measure volatility, are separated. This disparity suggests Ethereum’s price is volatile. Despite the price increase, the Relative Strength Index (RSI) is below normal, indicating bearish activity.
Binance’s regulatory issues, particularly its negotiated agreement with the US Department of Justice, have an impact on Ethereum. Binance dominates Ether spot trading volume, accounting for 30% of ETH futures open interest. Binance’s $2.35 billion ETH derivatives contract termination may have significant consequences. The $1.53 billion exodus from Binance from November 21 to 23 has raised concerns about spreads and liquidity.
Ethereum Regains Top Spot with $12.6 Million in 24-Hour Volume
The regulatory environment has risks and opportunities. Some see Binance’s activities as indicating substantial reserves, but others are wary about the $4.3-billion penalty facing Binance and its former CEO, Changpeng “CZ” Zhao. The termination of Binance’s derivatives contracts and heightened regulatory scrutiny raise questions about Binance’s relationship with stablecoins like Tether (USDT), TrueUSD (TUSD), and Binance USD.
Recent regulations have many positive traits. Binance’s commitment to compliance may reduce the risks of unregulated exchanges. Thus, this measure may increase the likelihood of SEC approval for cryptocurrency spot ETFs.
Ethereum’s network health shows that Decentralized Applications (DApps) reached $26 billion in TVL on November 23, up 5% from the previous week. Despite a security compromise that reduced deposited funds by 16%, dYdX is in good shape. According to its $12.6 million 24-hour transaction volume, Ethereum has reclaimed first place in the NFT market.
