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Ethereum price subject to volatility as Chainlink enables staking on the ETH network

  • Ethereum price is down 3% on the day following a rejection from a crucial support zone.
  • Chainlink has initiated a staking protocol on the Ethereum Network.
  • A retest of the $1,211 barrier could induce a sweep-the-lows event.

Ethereum price has investors dialing in as Network advancements are arousing speculation. Still, the technicals will need to show forth stronger signals to justify opening a long position.

Ethereum price is in question

Ethereum price is currently down 3% on the day as the bears have flexed a rejection near the mid $1,200 level. At the time of writing, ETH is testing the 21-day simple moving average for support and is submerged below a support zone established in October.

Ethereum price currently auctions at $1,229. The bearish flex comes at an interesting time in the market, as Chainklink has recently launched its early access staking program on the Ethereum network. Staking is a pledge investors can make to provide liquidity for their digital assets’ network and receive a percentage yield. 

On November 6, Chainlink went live on the Ethereum Network, enabling LINK users to stake up to 7,000 Chainlink tokens per address. According to Coinmarketcap.com, Chainlink is ranked 20th among all cryptocurrencies, with a total market cap of $3,478,182,520. Now with the ability for LINK and ETH users to collaborate amongst both networks, the potential for robust gains for both tokens seems ever more promising. 

tm/eth/12/7/22

Still, the ETH price has yet to match the optimistic advancements accomplished on the network. Traders may want to consider remaining sidelined unless the bulls can hurdle the broken support zone above $1,250. A breach of the 1,250 zone could induce the 10% rally into the mid-1,400 zone mentioned in the previous outlook. The same thesis also mentioned that a plummet below $1,211 could induce larger downtrend move, targeting the November low at $1,075. The Ethereum price would decline by 12% if the bearish scenario manifests.

tm/eth/12/14/22

ETH/USDT 1-Day Chart

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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