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- The second largest coin gains bullish momentum.
- The token practices deflationary mechanism
- ETH witnessed a price rally by 5%.
The people participating in the crypto space are very recently talking about ETH being a deflationary token. But is that true? Yes, ETH is indeed a deflationary token that works on the market mechanism to stimulate its price. Its current deflation rate for ETH is 0.001% annually. Due to the heartbreak caused by the FTX crash, the market is on a recovery journey and plans to go up from here. The masses say ETH has dropped to the lowest it would have gone; now, it only plans to surge from this point. Either by hook or crook, it plans a bright future for its holders and itself.
Here’s what the charts reveal
The ETH price forms a falling parallel channel for the price to shoot in the future. It targets to reach the price levels near $2010 at the end of the channel. The trading volume also fully collaborates with the formed pattern and prepares a stronger base. It penetrates the 20-EMA and aims for the higher ones to reclaim in the future.
The ETH price sends the CMF indicator to rise and dip slightly for the pattern to be formed successfully and for the price to rocket. The MACD indicator converges with the signal line above the MACD line, coinciding with marking the end of the bear era. The RSI indicator slopes higher to escalate to the higher zones as the buyers of ETH become more active.
In the recent hours
The 4-hour timeframe shows the price to follow the pre-paved path for the surge. The RSI indicator moves akin to the ceiling and becomes overbought by the holders. The CMF indicator rises and floats above the zero mark for the price rallies. The MACD indicator diverges with a wider gap for stronger bulls taking over the market of ETH.
Conclusion
Ethereum is building high hopes for the holders as it bids farewell to the recovery phase and plans to rally. Being amongst the major crypto coins, its positive news sends ripples to many other coins in the market which hold strings with this platform and see good times in the future.
Technical levels
Support levels: $1085.20 and $888.30
Resistance levels: $1703.25 and $2015.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
