 Ethereum on Alert: Technical Consolidation and Risks with Risin
2025-02-06
Category: None

Technical Analysis
Current Price: $2,804.39
Supports:
$2,735.55 –
$2,635.90 –
Resistances:
$2,921.99 –
$3,034.50 –

ETH is trying to sustain itself above the short-term averages, but without a clear bullish bias in the short term. The price is consolidating within the mid-bands, suggesting a possible accumulation before a breakout.
ETH is in a consolidation phase, and it is crucial to observe breaks of the $2,921.99 levels to validate a more significant rise. If it loses $2,735.55, it may retest the $2,635.90 region.

Fundamental Analysis
🔸 Ethereum Inflation: The supply of ETH has increased again, making the asset inflationary after the Dencun update.
The introduction of blob transactions, designed for large data loads, has reduced the proportion of fee burns.

The Pectra upgrade (March 2025) could further increase inflation by increasing the gas limit, potentially impacting the supply and demand balance.

If fee burns remain low and supply remains inflationary, selling pressure could increase, limiting price growth. Monitoring the impact of Pectra will be essential to assess the effects on ETH supply and price.

While technically ETH is seeking consolidation, fundamentally rising inflation could impact its performance. Stay tuned for market movements and changes in fee burn policy! 🚀