Lately, the altcoin king Ethereum is not doing well. Due to the consecutive news from the Polygon network and Layer-2 solutions, Ethereum, which has started to lose its former popularity, has also experienced a decrease in transaction volume. While things are not going well in the altcoin and NFT markets, the recent Curve Finance hack incident has also had a negative impact on the Ethereum price. Following the hack, Ethereum TVL (total value locked) experienced an 8% decrease. We can analyze the graph considering all these developments.
Current Ethereum Analysis
The first notable thing in the daily Ethereum chart is the forming of a wedge formation. We have seen this formation in many charts we have examined recently and have analyzed the possible scenarios based on it. Another thing that caught my attention is the support role of the EMA 200 point on the daily chart. Since March 10, 2023, EMA 200 has acted as support in three different periods.
Based on all this, in a positive scenario that could occur, the first level to be surpassed is the $1921 level. Above this level, the most important resistance level in daily closings is the $2034 level. If this level, which is the breakout level of the wedge formation, is surpassed, we may see the $2178 level and finally the $2531 level.
In a negative scenario, the first support level that needs to be broken for a decline is the $1779 level. The fact that this level is the EMA 200 average is of vital importance. However, if it is broken, we can follow the levels of $1713, $1615, and $1500, respectively.
Decreasing Interest in the Ethereum Ecosystem
Things are not going well in the Ethereum ecosystem at the moment. After the Curve Finance hack incident on Sunday evening, attention turned to Ethereum-based DeFi products once again. The fact that users constantly experience hack incidents due to a vulnerability in these platforms also leads to the loss of funds by many users and the loss of interest in the ecosystem and DeFi products.
In the NFT market, the lowest trading volume and number of traders in recent months are observed. The high transaction fees compared to other ecosystems and the continuous emergence of similar projects have created a great disappointment for NFT enthusiasts.
