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The Ethereum (ETH/USD) price was in a tight range during the weekend as investors waited for the next catalyst. The cryptocurrency is trading at $3,333, which is slightly below its weekend high of $3,485.
Ethereum recovery rally stalls
Ethereum is a blockchain project that has grown to become the most influential one globally. The network is used to build other blockchain products like stablecoins, cryptocurrencies, non-fungible tokens (NFT), decentralized finance (DeFi) products, and games, among others. Today, it is responsible for more than 87% of most of the biggest blockchain projects in the world.
Ethereum has been used widely in the DeFi industry. Data compiled by DeFi Llama shows that the platform has more than 245 DeFi platforms that have a combined total value locked (TVL) of more than $134 billion. The second chain is Binance, which has 110 products and a TVL of more than $16.47 billion. The other leading chains like Solana and Avalanche are substantially smaller than Ethereum.
Ethereum has done all this despite its limitations. Its top limitations are that it is relatively slower than other blockchain projects since it uses proof-of-work (PoW) technologies. It is also a congested network, which makes it substantially expensive than other networks. Still, its biggest benefit was that it was among the first platform to offer these services.
There will be several key catalysts for Ethereum price in October. First, its movement will depend on the performance of Bitcoin, the biggest cryptocurrency in the world. The two have a close correlation.
Second, the price will react to the risks in the market. Some of the top risks expected are the US debt ceiling and the Evergrande issue. Finally, Ethereum price will react to the mainnet upgradethat will take place in the final week of the month.
Ethereum price prediction
The four-hour chart shows that the ETH price found a strong resistance at $3,486 during the weekend. The price is slightly above the 25-day and 50-day moving averages. It is also along the 50% Fibonacci retracement level.
Therefore, while a double-top is usually a bearish sign, there is a possibility that the coin will resume the bullish trend. If this happens, the next key resistance level to watch in October will be $4,000, which is the next key resistance level.