• Ethereum (ETH/USD) is trading at its crucial resistance zone of $1,250 after recovering 3% on Wednesday.
• Ethereum network surpassed Bitcoin in transaction volumes in 2022
• Technical outlook shows ETH trading on a short-term trendline initiated from the $1,100 bottom.
The cryptocurrency market has been on a rollercoaster ride since the beginning of 2021, and Ethereum (ETH/USD) has been no exception. After crashing below the $1,250 resistance in mid-December, Ethereum has been slowly making its way back up. On Wednesday, Ethereum was hovering around the $1,250 resistance after recovering 3%. Although bulls are eagerly waiting for a breakout above this level, it is still too early to judge how far the price can surge.
Despite the volatile nature of Ethereum in 2020, the cryptocurrency was able to make a name for itself. According to data from Ycharts and Nasdaq, Ethereum was able to surpass Bitcoin in transaction volumes last year. Ethereum witnessed 408.5 million transactions, far surpassing Bitcoin’s 93.1 million. This surge in transactions can be largely attributed to Non-Fungible Token (NFT) launches.
As of January 2, 2021, Ethereum’s transaction volumes are still rising. Data from Bitinfocharts shows that Ethereum has hit 924,614 transactions, whereas Bitcoin has only reached 229,191. Technical analysis of the chart also shows that Ethereum is trading on a short-term trendline initiated from the $1,100 bottom. Although the buy side volumes are still not very significant, they have improved over the past few days.
Investors eager to make a move in the Ethereum market should wait for a bullish confirmation before buying. A breakout of the $1,250 resistance can provide the much-needed momentum needed to propel the cryptocurrency higher.