Ethereum ($ETH) started to recover after sitting below $3,420 all week. The December high of $4,077 remains out of reach, but there is hope that ETH will clear the resistance at $3,500.
This increase could be due to the 16.29% increase in the 24-hour trading volume of the Ethereum ecosystem token. The cumulative market capitalization of all projects on Ethereum now exceeds $495 billion.
Will this momentum be enough for a comeback? Let’s take a closer look at $ETH’s price history.
Mixed signals for $ETH, but the long-term trend is bullish
The Average Directional Index (ADX) and Stochastic RSI suggest a weak trend for $ETH. This means that even if $ETH takes the path to recovery, it will take some time to return to its peak.
However, the Moving Average Convergence Divergence (MACD) indicator is certainly bullish, as are the moving averages.
Yesterday, bulls briefly pushed ETH price to $3,499, but the token bounced back to $3,440. Now $3,500 is a critical psychological resistance level that $ETH must overcome to strengthen the uptrend.
If ETH dollar fails to break the $3,500 zone, it could find support at $3,420. The next support line is at the 50% Fibonacci retracement level at $3,310.
Luckily for the Ethereum community, the tokens are thriving on the network. Department of Government Efficiency (DOGE), Hoppy ($HOPPY), Apu Apustaja ($APU), Neiro Ethereum ($NEIRO) and Pikaboss ($PIKA) are among the top meme coin winners today.
Ethereum’s popularity as a meme coin network leads to continued demand for $ETH. This means $ETH’s recovery is a matter of “when” and not “if.”
Two sides of the same (meme) coin?
In this bull market, meme coins form two distinct niches: pump-and-dump coins (shitcoins, so to speak) and utility tokens under a meme facade.
The first category includes Fartcoin ($FARTCOIN), SPX6900 ($SPX) and Gigachad ($GIG). They created a lot of hype and rose to the top, but how long will they maintain their momentum?
Shiba Inu ($SHIB), Pudgy Penguins ($PENGU) and Floki Inu ($FLOKI) now lead the second category. However, the top could soon change as Ethereum-based project Meme Index introduces the world’s first meme coin index.
You can diversify your meme coin investments to spread risk through one of four Meme Index baskets tailored to different risk appetites.
Whether you invest in behemoths like $DOGE or pump-and-dump tokens like $FARTCOIN, the potential returns could be higher if you offset losses.
The $MEMEX presale started recently, with one token now worth $0.0148639. So far, early adopters have invested $1.5 million and presales are quickly gaining momentum.
$MEMEX holders will have a say in key development proposals as the Meme Index platform launches. Additionally, they can stake their tokens at an APR of 1,500% – there is no other way to grow your holdings at such a pace.
Final remarks
While $ETH’s short-term price performance is uncertain, its long-term prospects remain good. The thriving application ecosystem and innovative projects like Meme Index are likely to fuel continued demand for $ETH.
In the meantime, we remind you of DYOR before investing in any project. There are no guarantees in the crypto market. So only invest as much as you can afford to lose.