Unlike the majority of altcoins with huge growth trends in the past days, the price gains in Ethereum (ETH) is currently flattened, despite unique fundamentals inherent in the world’s most used blockchain network. At the time of writing, the digital currency is up 0.74% and is changing hands at $3,277.17 according to CoinMarketCap.
For the past seven days, Ethereum has kept its price range between a low of $2,959.03, and a high of $3,333.99. The positive trading range in the past month is not remarkably divergent, suggesting that Ethereum bulls are comfortable keeping prices above the core psychological $3,000 support zone.
Ethereum’s Fundamentals are Strong
Earlier this month, the Ethereum network witnessed a significant network upgrade dubbed EIP 1559 upgrade or the London Hardfork. This upgrade introduced notable changing bordering of fee structure and also switched the Ether coin into a deflationary asset in which a steady amount of the digital currency is burnt and removed from circulation.
At present, as much as 71,749 Ether has been burnt to date, a figure worth about $235.1 million using the current price of ETH. This deflation is expected to drive in scarcity, and showcase a corresponding impact on the price of Ethereum, however, this has played little role in stirring an uptick in the cryptocurrency.
On-chain data from Glassnode also suggests continuous accumulation of Ethereum. According to the data analytics platform, the number of addresses holding more than 32 coins just have surged to a 3-month high of 107,984.
— glassnode alerts (@glassnodealerts) August 21, 2021
The ensuing stackup which is expected to conplement the token burning has always played little role in pushing Ethereum towards more ambitious price levels in the past days.
Ethereum Price Outlook
The ETH/USD 4 hour chart as seen on TradingView shows a flattening indicator growth. Amidst the broad stretch of the price to break the resistance at the $3200 price level, the trio of the 9-day Moving Average, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are flattening at the top, to show a potential price reversal.
As long as Bitcoin is driving the growth of altcoins, any price consolidation in Ethereum is poised to be short lived, as the coin will ride on the broader market strength to pick new price gains provided the on-chain metrics are sustained.