Despite the fact that ETH price turned out to be Bullish for the last week, it couldn't be said that ETH price made some kind of breakthrough over these days and a bearish trend still persists. ETH has been consolidating at around 4,000 for a week.
The total market capitalization of the crypto market is approaching the $ 2.4 trillion and Ethereum's share is 20.28%. Although investments in Ethereum have slightly decreased over this month, it is worth noting that the share of Ethereum has almost doubled from 11% a year ago to 20.28% in December. It seems that ETH is getting more popularity than Bitcoin.
Last week, the developers of the Ethereum 2.0 blockchain deployed a test network called Kintsugi, which is already available for public use. The Ethereum 2.0 ecosystem has received support for a testnet called Kintsugi. This is reported in the blog of the Ethereum blockchain developers. The testnet creators encouraged blockchain developers and smart contract owners to test Kintsugi's functionality to identify potential bugs.
However, Kintsugi is not the only testnet before the final migration of the Ethereum Proof-of-Work algorithm to Proof-of-Stake. The developers have already announced that they plan to deploy several more similar networks before the main network migration process begins. The developers did not specify the timing of testing, but the transition to the proof-of-stake consensus mechanism is expected in the first or second quarter of 2022.
As for the forecasts for the coming week, it is most likely that it is impossible to say unequivocally where the price will move in the coming days, but if the Ethereum price turns out to be below $3900 again, then we can say that ETH is again at the mercy of bears.
On the weekly chart, there have been no significant changes. The price still rests against the lower border of the ascending trend line, which means that both an upward rebound and a continuation of the fall are still possible. But the likelihood of a fall is still more obvious.
Firstly, the lines of the MACD indicator forms a dead cross and the histogram itself is growing in the lower plane. And secondly, as you can see between the price chart and the MACD and RSI indicators, a rather large bearish divergence has formed.
On the daily price chart, we can see that the price is also pressed against the uptrend line, but from the opposite side of it. At the moment, after the price has corrected into the zone of the current resistance, it is likely that a rebound downward will occur and, as a consequence, the bearish trend will continue. While the MACD and RSI are in the neutral zone, which also indicates market uncertainty.
Finally, despite all the bearish prerequisites, the price has not yet moved too far south and there is still a possibility that Ethereum may again find itself above the resistance line in the near future, and the bearish sentiment was just a big correction in the long-term Bullish trend.