Ethereum Market Update: Ethereum loses attractivenes as a means of payment

• ETH is less popular as a means of payment.
• The coin has been oscillating in a tight range since May 15.

Ethereun is changing hands at $233.00, mostly unchanged both since the start of Thursday and on a day-to-day basis. ETH/USD touched the low of $218.14 on May 15 and got back above $230.00. The sell-oof stopped on approach to daily SMA50, however, the further recovery is limited at thsi stage due to Ethereum's high correlation with Bitcoin/

Ethereum is losing its status of money

The second most capitalized cryptocurrency is less and less used as a means of payment, according to the recent report published by the cryptocurrency research company Glassnode. The share of ETH payments in the on-chain transactions ahs een decreasing steadily. In May 2020, such transactions accounted for about a third (34.2%) of on-line activity on the Ethereum network. The share of commissions paid for their processing was 10.7%.

Meanwhile, the operations with smart contracts are rsponsible for 52.4% of all commisions on the Ethereum network. Also, the researchers noticed the growing popularity of Ethereum-based USDT, which accounts for 20% of commissions.

ETH/USD: Technical picture

On the daily chart, the initial support is created by the lower line of the daily Bollinger Band (BB) at $227.50. Once it is broken, the sell-off may be extended towards the recent low of $218.14 reinforced by daily SMA50. THis area is likely to slow down the sell-off and attract new buyers to the market; However, asustainable move lower will open up the way to $210.00 and potentially to the psychological $200.00.

On the upside, the recovery is limited by $240.00 with the middle line of the daily BB located on the approach. This resistance is followed by the recent recovery high of $254.00 followed by weekly SMA200 at $256.70. The coin has been trading below this MA since the beginnign of March.

ETH/USD daily chart

 

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