Ethereum Price Analysis: ETH settles below SMA50 daily, more pain ahead

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Ethereum is the most popular blockchain for dapps, research shows.
ETH/USD grapples with bearish sentiments after a move below SMA50 daily.

Ethereum is an uncontested leader of Dapp space

Ethereum retains a leading position as the most popular blockchain for decentralized applications (DApps), according to the recent report published by DappReview. 

Currently, there are 1223 active decentralized applications launched on Ethereum blockchain with 688 of them deployed in 2019. Notably, the total transaction volume on Ethereum reached $12.8 billion, with over 90% of the amount is accounted for by DeFi (decentralized finance). 

TRON and EOS also maintained good momentum in 2019, however, they are still far behind Ethereum in terms of the number of Dapps launched on the blockchain. All-in-all, the “Big Three” in Dapp space account for over 98.65% of all Dapps industry.

ETH/USD: technical picture

ETH/USD topped at $147.96 on January 8 and retreated towards $136.30 by press time. The second-largest digital asset has been moving in sync with the market, however, the recovery attempt was less pronounced as with Bitcoin or XRP.

From the technical point of view, an inability to stay above $140.00 bodes ill for the short-term trend and implies the downside correction may gain traction with the next focus on $132.50 ( the middle line of the daily Bollinger Band). Notably, ETH/USD slipped below SMA50 daily, which is another argument for the bearish scenario. 

If $132.50 gives way, the sell-off may continue towards psychological $130.00 and $125.80, which is the lowest level of January.

On the upside, we will need to see a sustainable move above SMA50 daily at $13950 and psychological $140.00 for the upside to gain traction. The next resistance is located on the approach to the upper line of the daily Bollinger Band at $143.70. Once it is out of the way, the upside is likely to gain traction with the next focus on $147.96 (the highest level of 2020) and $150.00.

ETH/USD daily chart


 

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