23,634 ETH Burned as Ethereum Network Activity Increases

• Approximately 23,634 ETH has been burned in the last week after network activity on Ethereum increased.
• There has been a lot of volatility on ETH’s charts following a breakout below a positive price channel.
• The upcoming FOMC meeting may result in ETH’s price dropping below $1,790.

The Twitter user and crypto enthusiast Miles Deutscher tweeted about the leading altcoin Ethereum (ETH) this morning. In his tweet, he stated that if investing in meme coins is considered gambling, then Ethereum is the casino. According to Deutshcer, approximately 23,634 ETH has been burned in just the last week following increased network activity.

Daily chart for ETH/USDT (Source: TradingView)

ETH had been in a positive parallel price channel between 10 March 2023 and 16 April 2023. The altcoin’s price then attempted to break out above this channel but was immediately forced back down by bears. It didn’t stop there, however, as bears decided to take advantage of the opportunity and force ETH’s price to break below the positive price channel.

During this downward move, ETH’s price also lost the support of the $1,945 level, which was subsequently flipped into resistance. In addition, the crypto’s price also dropped below the 9-day and 20-day EMA lines on 21 April 2023. Since then, ETH’s price has been unable to reclaim a position above the 2 key EMA lines.

ETH’s price continues to trade below the 9-day and 20-day EMA lines in today’s trading session. However, bears are attempting to drag ETH’s price down to the next key support level at around $1,790 in the next 24-48 hours, which is evident by the bearish technical flags present on ETH’s daily chart today.

At press time, the 9-day EMA line traded below the 20-day EMA line, which suggested that ETH’s price had entered into a short-term bearish cycle recently. In addition, the daily RSI line traded below the RSI SMA line.

Traders and investors will want to take note of the upcoming FOMC meeting today. Previous FOMC meetings have had a significant impact on prices in the crypto market. Should history repeat itself with today’s meeting, another interest rate hike will result in ETH’s price dropping below the aforementioned $1,790 level in the next 48 hours.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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