The Ethereum price has taken another deep dive against the USD, falling below the $1,250 support level to lower lows against the USD. This fall in price is happening despite the positive on-chain activity. The token fell as low as $1,272.98 in the early hours of trading today. This bearish rally started when the token lost support at $1,320. What will the next few trading sessions bring for Ethereum?
Ethereum Price Analysis Today
At the time of writing, the price of Ethereum was $1,283.84. The token was down by 1.86% against the USD over the last 24 hours. Within the same time frame, the token has only been able to rise as high as $1,318.56 and has found key support at the $1,272.98 level.
If the bears continue to control the Ethereum price, there is a strong chance that the token will fall as low as $1,150 within the next few days. The steep decline in the price of Ethereum has pushed the token below the 100 hourly simple moving average at $1,300.
Right now, the most significant resistance is at the $1,285 level and the Ethereum price needs to break above this resistance to end the bearish rally. A surge above $1,285 will take the Ethereum price higher to the next resistance levels at $1,340 and $1,350.
On-chain Activity Shows Drop in Supply of ETH
Over the weekend, on-chain data shows that there was a drop in the supply of Ethereum. This drop reduces inflation and typically promotes a price spike. Unfortunately, this was not the case. Rather than spiking, the Ethereum price took a deep dive against the USD.
In other news, gas fees on the Ethereum network have been increasing at an unprecedented rate. The gas fees aren’t showing any signs of falling lower against the USD anytime soon. In the next few trading sessions, it would either be make or break Ethereum.