Ethereum (ETH) Price Drops 7.8% A Day After Dencun Upgrade, What’s the Next Support?

Following the successful implementation of the Dencun upgrade, Ethereum has encountered significant selling pressure. As of the latest update, the Ethereum (ETH) price has declined by 7.8%, trading at $3,669 with a market capitalization of nearly $450 billion. Additionally, Ethereum’s daily trading volume has surged by 45% to $32.29 billion

Ethereum (ETH) Price Levels to Watch Ahead

The Ethereum price faced resistance at the $4,000 level and initiated a downward correction, mirroring Bitcoin’s movement. ETH dipped below crucial support levels at $3,920 and $3,850, signaling a short-term bearish trend.

It briefly dropped below the $3,680 support area, reaching a low of $3,625 before consolidating losses. Currently, a significant bearish trend line is forming with resistance around $3,850. The primary resistance levels are near $3,850 and the trend line, close to the 50% Fibonacci retracement level from the recent swing high at $4,083 to the low of $3,625.

If the Ethereum (ETH) price surpasses the $3,880 resistance, it may regain bullish momentum, aiming for the $4,000 level. Conversely, failure to break above $3,850 could lead to further downside movement. Initial support is at $3,680, followed by a major support zone near $3,600, with a potential downside target at $3,500. A decisive break below $3,500 might trigger a decline toward $3,350.

Source: Trading View

Popular crypto analyst CrediBULL Crypto explained that the range of $3600-$3700 for Ethereum is likely to attract significant buying interest in the short term.

Furthermore, blockchain analytics firm Elliptic uncovered a substantial transaction involving $12 million worth of Ether by the Lazarus Group. This transfer was facilitated through Tornado Cash, a cryptocurrency mixer. Despite being subject to sanctions, the North Korean hacker organization has resumed its use of this platform.

The funds are traced back to a cyber-attack on HTX and the Heco Bridge in November, orchestrated by the Lazarus group. This attack resulted in significant losses amounting to $100 million for the affected platforms.

ETH Gas Fee Drops Under $10

According to Santiment, an on-chain data provider, the current scenario of Ethereum surpassing a $4,000 market value differs from October and November 2021. Today, the network’s transaction costs are significantly lower, standing at less than 1/6th of the previous levels. With gas fees averaging $9.35, this improvement can be attributed in part to the enhancements in network fees following the transition to Ethereum 2.0.

Courtesy: Santiment

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