Ethereum has tracked Bitcoin and registered a new 10% correction on the daily chart. The major cryptocurrencies have suffered in the last week. Fear and uncertainty seem to be driving market participants.
At the time of writing, ETH is trading at $ 2270 with red on all charts. The cryptocurrency was rejected after it briefly broke the $ 2,800 area. During yesterday’s trading session, the rejection was followed by a drop in Bitcoin and ETH quickly followed.
ETH in a downtrend on the daily chart. Source: ETHUSD Tradingview
The cryptocurrency is in critical support with the potential for further downside if the bulls cannot contain the bears at current price levels. The selling pressure is high. Data provided by analytics firm Jarvis Labs indicates that around 18:00 UTC more than 177,900 ETH entered the Binance exchange.
A large number of Bitcoin entries were also recorded. Approximately 4,500 BTC entered Binance around 10:00 UTC. For both cryptocurrencies, there have been additional entries in minors since then. The Ethereum input saw around 10,900 and 13,500 between midnight and 19:00 UTC.
Source: Jarvis Labs
ETH inflows to exchanges have reached yearly highs during May. Additional data provided by CryptoQuant suggests that on May 19 and 23, Ethereum fell from its all-time high that was preceded by a surge in entries. As the chart below shows, the ETH price has been trying to rally, but the selling pressure has been relentless.
Why Ethereum Still Has Improvement Potential In 2021
Although the short term could be dominated by bears, ETH has a lot of potential with Hard Fork “London” and the introduction of EIP-1599, Ethereum 2.0 and their future updates. In addition, this platform houses three of the most successful narratives and sectors in recent years: Non-fungible tokens (NFT), DeFi and the store of value against inflation.
EIP-1599 will make ETH a deflationary asset. Therefore, many believe that it will be a better hedge against inflation and a better version of digital gold than Bitcoin.
Earlier this week, a leaked report from banking giant Goldman Sachs predicted that Bitcoin will lose this race to Ethereum. The report called the Ethereum network the “Amazon of information” and stated that it has a “higher probability” of becoming the “dominant” store of value over gold and BTC.
The full report has been published by Goldman Sachs with interviews with important personalities in the crypto industry. One of them is Mike Novogratz, CEO of Galaxy Digital Holdings. He stated that ETH will support a global system adopted by many people. They will take advantage of payments, DeFi and NFT, Novogratz said:
The three biggest moves in the crypto ecosystem (payments, DeFi, and NFT) are being built primarily on Ethereum, so it will be priced similar to that of a network. The more people use it, the more things will be built on it and ultimately the price will go up.