Ethereum's (ETH) price briefly dipped below $3,000 on Tuesday after tensions surrounding a potential Iran-Israel conflict suppressed the effect of Hong Kong's spot ETH approval. Regardless of the price dump, the recent ETH issuance reduction proposal has made the rounds again following research firm Glassnode's report.
Read more: Ethereum recovers from dip as Hong Kong ETH ETF approval sparks whale buying spree
Ethereum headlines the crypto market again with increased attention surrounding it. Here are your key market movers:
Also read: Ethereum price stagnates as EIP-3074 brings smart contract functionalities to wallets
Ethereum bears prevailed in the past 24 hours as its price has found it difficult to recover from the weekend slump. After a brief move toward $3,300 on Monday, expectations were that it would maintain a sideways movement in the $3,210 to $3,406 range. However, ETH declined further, settling around the $3,000 support.
ETH/USDT 1-hour chart
Read more: Ethereum price recovers slightly as whales begin accumulation spree
Considering current volatility, ETH may trade inside the range of $2,852 and $3,301, both formed on Saturday. A move above the range may see it breaking past the $3,406 resistance of April 7 and testing the 3,618 key level of April 11. A further upward move will see ETH sustain bullish momentum. However, a move below the range will see ETH entering a bearish trend.
Three factors will affect this thesis: the upcoming Bitcoin halving, a potential Iran-Israeli conflict, and the Securities & Exchange Commission’s (SEC) decision on a spot Ethereum ETF.
Ethereum is trading around the $3,000 support at the time of writing.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.