Ethereum Close To Resistance Level

 Ethereum Close To Resistance Level

Ethereum (ETH) Close To $2500 Resistance Level

It appears that the Ethereum (ETH) is now edging closer to the $25K resistance level. However, the timing of this movement in Ethereum is not ideal, as the DeFi sector is going through a hard time. In addition, there are also no signs of any improvement in the DeFi sector for the near term.

One particular reason behind the weakness in the DeFi sector is the high transaction fees. In fact, that's one of the top reasons that has made it difficult for the average user to use the layer-1 platform.

Ethereum Faces Several Headwinds

To say that the network fees have reached unreasonable levels wouldn't be wrong at all. The current rate of fees is so high that it has now started to affect the usability of the ETH.

To solve these issues, the cofounder of Ethereum (ETH) is now talking about adding some scaling features to the ETH mainnet. It is also important to note that the ETH community has long awaited this feature.

Another thing that is challenging Ethereum is Solana, which promises much lower fees. At the same time, Solana also enables users to enjoy higher transaction rates, which is not possible with ETH. To say that all of these factors have made it difficult for ETH would be an understatement.

Despite all of these problems, the price action of the Ethereum (ETH) tells a completely different story. Fueled by a market-wide upside, the ETH is comfortably trading above all the major MA lines, which is a sign of bullish momentum.

In addition, the 20, 50, 100, and 200 SMA lines on the daily chart also suggest that ETH is strongly bullish across several timeframes.

Looking forward, the $25K level will be important to watch as it will signal a new buying or selling move in Ethereum. However, given the problems faced by the ETH from its competition and higher transaction fees, the chances of a successful break of the $25K are very low.

Trending Stories