Ethereum price fell below $3,500
It will take more than Ethereum’s upcoming Pectra upgrade to turn ETH price around. Cointelegraph explains why.
Ether price fell below $3,500 on Jan. 7 and has since struggled to trade above that level. The altcoin has declined by 8% over the past 30 days, while the broader cryptocurrency market capitalization increased by 6%. This underperformance is concerning for Ether investors, especially with the launch of the spot Ethereum exchange-traded fund (ETF) in July 2024.
Ether/USD vs. total crypto capitalization. Source: TradingView / Cointelegraph
Traders' disappointment comes after a period of average Ethereum transaction fees exceeding $2, steady growth in the ETH supply, significant criticism regarding the lack of support from the Ethereum Foundation, and memecoin trading shifting to competitor blockchains, particularly Solana.
Three factors could potentially push Ether above $3,500, although some depend on external elements such as regulatory changes.
Pectra upgrade, changes in US ETF regulation and layer-2 growth
The initial excitement brought by the election of the crypto-friendly United States President Donald Trump quickly faded after the launch of the Official Trump (TRUMP) memecoin on the Solana network. The token traded over $12 billion in volume during the first 48 hours, and its market capitalization rose above $14 billion, leading to a substantial influx of new users on Solana.
President Trump endorsed the TRUMP memecoin through social media posts, surprising Ether investors since previous non-fungible tokens (NFTs) related to Trump’s conglomerate had been launched on Ethereum. However, Ether’s price was already underperforming after increasing by 26.8% in the fourth quarter of 2024, while the overall cryptocurrency market capitalization grew by 44.6%.
Total value locked (TVL) market share. Source: DefiLlama
For example, Solana became the leading blockchain in decentralized exchange (DEX) volumes, while Tron captured a 28% market share in the stablecoin sector. Additionally, Ethereum's significant investment in layer-2 scalability using rollups had unintended effects, such as relatively empty blocks.
For Ether to surpass the $3,500 resistance level, investors need greater clarity on the effects of the upcoming Pectra upgrade, scheduled for the first quarter of 2025. The proposed changes introduce a unified framework for enhanced interoperability, secure wallet transitions, and simplified storage management. Ether investors believe that, despite good intentions, the development pace is insufficient to generate adequate fees from the layer-2 ecosystem.
Consequently, the upgrade will unlikely provide a significant positive impact on Ethereum's native staking yield or base layer scalability. As long as competing chains continue to extract more value from their users, the ETH price will remain under pressure.
Another concern for Ether bulls is the total value locked (TVL) in Ethereum layer-2 solutions, which declined by 25% after reaching an all-time high of $65.3 billion on Dec. 8, 2024. Despite increased activity, competition for the Ethereum ecosystem is intensifying from all directions, not just from BNB Chain and Solana. For example, Hyperliquid Chain has attracted $1.2 billion in deposits for its perpetual futures exchange.
Similarly, competition for users and deposits has emerged from networks such as SUI, Aptos, and TON. While these may not pose a direct threat, they are well-funded and target niche markets like Web3 gaming, social networks, digital collectibles, and artificial intelligence infrastructure. Ultimately, data shows that Ethereum's higher security is not the main driver for adoption.
Ether’s success depends on spot Ether ETF inflows, which have not seen $150 million or higher inflows since Jan. 16. Institutional demand for ETH-listed instruments has been disappointing, partly due to the lack of staking capability. Therefore, regulatory changes and the eventual approval of spot Ether ETF options on CME and CBOE could support the Ether price.
$ETH
$YULI Token Trading Strategy: A Tactical Approach to Profitability
Introduction
The $YULI token pr
$YULI Token Trading Strategy: A Tactical Approach to Profitability
Introduction
The $YULI token presents a unique trading opportunity, whether it’s a memecoin, utility token, or part of a growing ecosystem. My trading strategy for $YULI focuses on leveraging market trends, liquidity provision, and momentum-based strategies to maximize returns while minimizing risks. By combining technical analysis, DeFi opportunities, and risk management, I ensure a structured approach to trading $YULI in both bullish and bearish markets.
Understanding the $YULI Market
The price of $YULI is influenced by several key factors:
Market sentiment and hype – Community-driven tokens often see rapid price swings based on social media and news.
Liquidity and trading volume – The depth of the order book impacts trade execution and slippage.
Token utility and ecosystem growth – Staking rewards, governance use, and ecosystem expansion can influence demand.
Key Trading Strategies for $YULI
1. Swing Trading for Profitable Entries and Exits
Swing trading allows me to capitalize on short- to medium-term price movements by identifying key support and resistance levels. My strategy includes:
Technical analysis tools – I use moving averages (50-day and 200-day), RSI (Relative Strength Index), and MACD (Moving Average Convergence Divergence) to time market entries and exits.
Pattern recognition – Identifying ascending triangles, head-and-shoulders formations, and breakout trends helps me predict potential price movements.
Trading in range-bound markets – If $YULI is trading within a predictable range, I buy near support and sell at resistance.
2. Liquidity Provision for Passive Income
If $YULI is tradable on decentralized exchanges (DEXs), I take advantage of liquidity pools to earn passive income:
Providing liquidity on Uniswap, PancakeSwap, or similar platforms – By depositing $YULI and a paired asset (ETH, BNB, or USDT), I earn transaction fees.
Selecting high-yield pools – I focus on pools with strong trading volume and low impermanent loss risk.
Compounding rewards – Any liquidity provider (LP) tokens or yield farming rewards are reinvested for higher returns.
3. Momentum Trading for Quick Gains
Momentum trading is highly effective for $YULI when market sentiment shifts rapidly. My approach includes:
Tracking volume spikes – Increased volume often signals the start of a price rally.
Buying confirmed breakouts – If $YULI breaks above key resistance with strong volume, I enter trades early to ride the momentum.
Setting tight stop-loss orders – Since momentum can reverse quickly, I use stop-loss levels to lock in profits and limit losses.
Risk Management and Capital Protection
To ensure sustainable profitability, I follow strict risk management principles:
Position sizing – I never risk more than a set percentage of my portfolio on a single trade.
Stop-loss and take-profit strategies – Every trade has predefined exit points to manage emotions and maximize gains.
Portfolio diversification – I balance my $YULI holdings with other assets to reduce exposure to market volatility.
Conclusion
Trading $YULI successfully requires a combination of technical analysis, liquidity farming, and momentum-based strategies. By understanding market trends, capitalizing on trading patterns, and implementing risk management techniques, I optimize my approach to navigating both bullish and bearish conditions. As the $YULI ecosystem evolves, I continuously refine my strategy to stay ahead of new opportunities.