Despite A Weaker U.S Dollar, Ethereum Bulls Lose Steam

Despite a weakening dollar, the top altcoin was unable to clear above the $3,300 resistance. The price of ether needs to remain above $3,140 in the near future to prevent further downsides.

In response to Jerome Powell’s announcement that the Federal Reserve would hike rates slower than expected, the dollar stagnated around multi-week lows.

There will be U.S. jobs numbers on Friday, which could provide insights as to when the Fed will start tapering. Ethereum faces strong resistance near $3,280 and $3,300. In the hourly simple moving average, the price currently sits below $3,200 at the time of writing this report.

The cryptocurrency once again tried to break above $3,260 and $3,280. In comparison to bitcoin, ether’s price failed to move higher above $3,280 and started declining.

Ether could continue declining if it does not gain traction above $3,220 and $3,200 resistance levels. Immediately below $3,150, there is a support.

In the near future, a major support zone will form around $3,140. Below $3,140, the downside break could accelerate losses. According to the scenario, ether prices might return to $3,060

The network upgrade, which will cause ETH transaction fees to be destroyed instead of being handed to miners, has cost just over $400 million in burned ETH so far. There is a burning of approximately 200 ETH every hour.

By Sunday, over 124k ETH had been drawn from circulation by the Ethereum blockchain.

The EIP-1559 update, which burns ETH, became effective on August 5. Ethereum 2.0 is envisioned as an evolution of Ethereum that stabilizes transaction fees and speeds up the switch to Ethereum 2.0 from Ethereum 1.0.