Ethereum ($ETH) Began to Recover After Hovering Below $3,420 the Entire Week

The December high of $4,077 remains out of reach, but there's hope $ETH will clear resistance at $3,500.

After hovering below $3,420 for the entire week, Ethereum ($ETH) began to recover. However, the December high of $4,077 remains out of reach. Now, bulls are hoping that the token will clear resistance at $3,500.

This uptick could be a result of the 16.29% spike in the 24-hour trading volume of Ethereum ecosystem tokens. The cumulative market cap of all projects on Ethereum now exceeds $495B.

Now, let’s take a closer look at ETH’s price action.

Technical Analysis: Weak Trend, But Bullish Long-Term

The Average Directional Index (ADX) and Stochastic RSI suggest a weak trend for ETH. This means that even if ETH were to step on the path of recovery, returning to its peak will take time.

However, the Moving Average Convergence Divergence (MACD) indicator is assuredly bullish, and so are the moving averages.

Yesterday, bulls briefly drove ETH to $3,499, but the token bounced back to $3,440. Now, $3,500 is a critical psychological resistance level ETH must clear to strengthen the bullish trajectory.

If ETH fails to break above the $3,500 zone, it may find support at $3,420. The next support line sits at the 50% Fibonacci retracement level of $3,310.

Fortunately for the Ethereum community, tokens on the network are thriving. Department Of Government Efficiency (DOGE), Hoppy ($HOPPY), Apu Apustaja ($APU), Neiro Ethereum ($NEIRO), and Pikaboss ($PIKA) are among the top meme coin gainers today.

Ethereum's popularity as a meme coin network drives consistent demand for $ETH. This means that ETH's recovery is a matter of ‘when,’ not ‘if.’

Two Sides of the Same (Meme) Coin

In this bull run, meme coins are forming two distinct niches: pump-and-dump coins (shitcoins, if you will) and utility tokens under a meme facade.

The likes of Fartcoin ($FARTCOIN), SPX6900 ($SPX), and Gigachad ($GIG) belong to the first category. They generated a lot of hype and rose to the top, but how long will they maintain their momentum?

Shiba Inu ($SHIB), Pudgy Penguins ($PENGU), and Floki Inu ($FLOKI) now lead the second category. However, the top might soon change as the Ethereum-based project Meme Index introduces the world’s first meme coin index.

Through one of the four Meme Index baskets, catered to different risk appetites, you can diversify your meme coin investments to spread risk.

Whether you invest in titans like $DOGE or pump-and-dump tokens like $FARTCOIN, potential returns could be higher as you offset losses.

The $MEMEX presale kicked off recently, with one token now worth $0.0148639. Early adopters have invested $1.5M so far, and the presale is quickly picking up steam.

$MEMEX holders will have a say in key development proposals when the Meme Index platform launches. On top of that, they can stake their tokens at a 1,500% APY – there will be no other opportunity to grow your holdings at such a rate.

Closing Remarks

While ETH’s short-term price trend is uncertain, its long-term prospects remain strong. The thriving application ecosystem and innovative projects like Meme Index will likely drive sustained demand for ETH.

Meanwhile, we remind you to DYOR before investing in any project. There are no guarantees in the crypto market, so only invest as much as you can afford to lose.