Ethereum is currently trading around the $3,800 mark, encountering significant resistance near $3,900. Despite this, the project’s long-term outlook remains bullish due to a continuous increase in staked ETH.
Over the past two days, Ethereum has maintained its position around $3,800, showing a strong recovery from its recent low of $3,224 earlier in the week. While experiencing a 2.5% decline within the last 24 hours, Ethereum has still managed an impressive 8% gain over the past week.
However, a notable decrease in trading volume to $26 billion, coupled with a 2.45% drop in market capitalization, suggests a waning interest, potentially due to the ongoing struggle between buyers and sellers at the $3,800 level.
In terms of technical analysis, Ethereum’s price remains above key support levels, including the previous day’s Value Area Low (pdVAL) at $3,760. Traders are looking for a close above the daily open at $3,822 to signal more long positions, with the aim of retesting the $3,900 resistance area.
The Relative Strength Index (RSI) indicates a sideways movement, allowing for a resolution of the current deadlock between buyers and sellers. A rebound in the RSI towards the overbought region would signify a bullish return and potential price surge.
On the horizon, investors anticipate the Dencun upgrade launching on the mainnet on March 13, which promises to enhance Ethereum’s scalability and address congestion issues as it transitions to a proof-of-stake (PoS) protocol.
Additionally, Ethereum’s staked assets have surpassed 31 million ETH, marking a significant milestone in the platform’s shift towards PoS. This steady increase in staking activity underscores growing confidence in Ethereum’s long-term viability and performance.