Ethereum set for new resistance level as ETH fluctuates near $4K

Ethereum

Key Takeaways:

  • ETH set for new resistance level, analyst explains why.
  • Altcoin price remain stagnant around $4,000 over the past days.
  • Analysts believe other that  layer-1 scaling solutions could outperform Ethereum soon.

Ethereum (ETH) price over the yuletide season has continued to fluctuate around $4,000. The number one altcoin didn’t see any significant increase or drop in price during Christmas. It traded around $4,100 and $4,000 throughout.

According to crypto analyst Rekt Capital, ETH’s price movement could dip into the green area again, enabling it to form a fourth higher low in a row.

Ethereum, Ethereum set for new resistance level as ETH fluctuates near $4K
Chat showing ETH set to form a fourth higher low in a row. Source: Rekt Capital

While ETH stagnates at $4,000-$4,100 level, Rekt Capital before Christmas stated that ETH returned to the dotted black Higher Low, which it previously lost, stating that the number one altcoin may be facing a resistance.

He said that overall, the macro trend never changed, with ETH still holding the green area support, which was once a strong resistance.

Ethereum, Ethereum set for new resistance level as ETH fluctuates near $4K
ETH price chart as the coin holds unto its previous resistance before Christmas. Source: Rekt Capital

ETH Price analysis

The altcoin has held to the $4,000 resistance level for a long time now, finding it hard to make any significant surge with little volatility. This is normal considering the weekend and the new year’s holidays. The resistance is some distance away at $4,435, and as it seems now, it likely will not be tested any time soon. However, momentum might return in the coming week, before the new year’s evening or as 2022 starts.

However, its biggest rivals, Binance’s BNB and Solana, are trending slightly higher above it.
Ethereum’s two other major rivals, Cardano and Polkadot, are leading the major market higher today, up 9% and 6% respectively over the last 24 hours.

Ethereum ‘may’ get outperformed by other layer-1 solutions

With the stagnant price level of ETH, analysts believe that layer-1 solutions could outperform the altcoin. In addition, analysts have noted a spike in capital inflow in layer-1 solutions Matic, Solana, and Terra over the past two weeks. As a result, proponents believe that tokens with high on-chain activity could outperform Ethereum before the end of 2021.

Reportedly, institutional investors and large-wallet traders have invested hugely into MATIC, Solana, and Terra. For example, Solana’s market capitalization is more than double Avalanche and Terra’s. The increasing investor appetite for scalability solutions is evident from the total value locked and the on-chain activity on the networks.

In the same vein, the number of active addresses on MATIC and Solana has increased steadily over the last two months making analysts conclude that layer-1 scaling solutions could continue to outperform Ethereum.

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Ethereum, Ethereum set for new resistance level as ETH fluctuates near $4K

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