Currently, Ethereum is trading at around $3,005. Resistance levels are at $3,200 and $3,400. If ETH can break above these resistance levels, it could herald a stronger uptrend than the current one. Another important indicator that investors should follow closely is support levels. If Ethereum falls below $3,000, important support levels to watch are $2,900 and $2,800. Falling below these levels could indicate that the downtrend could worsen, causing investors to incur significant losses.

Recent price movements and technical analysis data reveal that Ethereum is struggling to maintain its upward momentum. The 50-day EMA (exponential moving average) is hovering around $3,067, and this level appears as a critical resistance point. The 200-day EMA is around $2,800, which is considered a strong support level. While exceeding the 50-day EMA is a positive signal and could increase bullish momentum, falling below the 200-day EMA could trigger further selling pressure, pushing the Ethereum price lower.

On-chain data also offers additional clues to market movements. The number of active addresses on the Ethereum network has been fluctuating recently. This shows that the activity of network users is at different levels. The number of active addresses, which has fallen from recent peaks, currently hovers around 450,000. Likewise, transactions on the network also show some variability, hovering around one million per day. This data may suggest that investors’ interest in Ethereum has decreased slightly at the moment.

With the EIP-1559 protocol, which came into force in Ethereum in 2021, the amount of ETH burned in the network began to exceed the amount of ETH printed. This was considered a positive signal that the ETH supply was decreasing and the value of the asset could increase in the long term. However, with activity on Ethereum’s L1 (mainnet) dropping significantly, net ETH emission has also now started to trend positive. This situation may affect the supply-demand balance again.

In conclusion, although Ethereum’s rise above $3,000 is a positive development, the asset still faces some issues. Traders should closely watch $3,200 and $3,400 above and $2,900 and $2,800 below. Whether or not these levels are exceeded in the coming period will seriously affect the course of the Ethereum price and investors’ confidence in the cryptocurrency market. It is eagerly awaited to see what impact the merge update, which will be implemented soon by Ethereum’s developers, will have on the market and the Ethereum price.