Ethereum price started a downside correction below the $3,150 zone. ETH is now consolidating near $3,120 and might attempt a fresh increase.

• Ethereum started a short-term downside correction below the $3,150 zone.
• The price is trading below $3,200 and the 100-hourly Simple Moving Average.
• There is a short-term contracting triangle forming with resistance at $3,120 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it remains stable above the $3,040 zone.

Ethereum Price Eyes Fresh Increase

Ethereum price failed to start a fresh increase above the $3,250 zone and started a downside correction like Bitcoin. ETH declined below the $3,150 and $3,120 support levels.

The bears even pushed the price below the $3,040 zone. It tested the $3,000 support zone. A low was formed at $3,016 and the price is now consolidating losses. It climbed above the 23.6% Fib retracement level of the downward move from the $3,340 swing high to the $3,016 low.

Ethereum price is now trading below $3,200 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,120 level. There is also a short-term contracting triangle forming with resistance at $3,120 on the hourly chart of ETH/USD.

The first major resistance is near the $3,180 level or the 50% Fib retracement level of the downward move from the $3,340 swing high to the $3,016 low. The main resistance is now forming near $3,220.

A clear move above the $3,220 resistance might send the price toward the $3,320 resistance. An upside break above the $3,320 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,450 resistance zone.

Another Decline In ETH?

If Ethereum fails to clear the $3,320 resistance, it could start another decline. Initial support on the downside is near the $3,060 level. The first major support sits near the $3,040 zone.

A clear move below the $3,040 support might push the price toward $2,980. Any more losses might send the price toward the $2,920 support level in the near term. The next key support sits at $2,880.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,040

Major Resistance Level – $3,120

Coinbase’s Ethereum Layer-2 network, Base, found itself at the center of controversy during the celebration of its 1 billionth transaction.

The celebration included the release of an NFT, which inadvertently copied the work of digital artist Chris Biron.

Base Hits 1 Billion Transaction

On November 15, Coinbase-backed Base proudly announced that it had completed 1 billion transactions since its launch in August 2023. This milestone was achieved in just over a year, a remarkable feat compared to established networks like Bitcoin, which took more than 15 years to reach similar numbers.

Base’s rapid rise is no surprise. The network has quickly become the fastest-growing Ethereum layer-2 solution, surpassing competitors like Optimism and Arbitrum. A recent report by CoinGecko ranked Base as the second most popular blockchain in 2024, with the network now capturing nine times more interest than its closest Layer-2 competitor, Arbitrum.

“Base ecosystem has seen its share of investor interest increase by over 5 times since Q1, raising the layer 2 ecosystem’s ranking from seventh to second, and overtaking its layer 1 Ethereum ecosystem. This also means that the Base ecosystem now captures 9 times more interest than the next most popular layer 2 ecosystem Arbitrum,” Coingecko stated.

Market observers have attributed the network’s rapid growth to the robust support and resources provided by Coinbase, the $76 billion crypto exchange that operates Base. Moreover, Coinbase brand power as the largest cryptocurrency exchange in the US has also undoubtedly contributed to Base success.

NFT Controversy and Apology

To commemorate the 1 billion transaction achievement, Base minted an NFT. However, the artwork bore a striking resemblance to a creation by digital artist Chris Biron, who accused the network of copying his work without credit. Biron claimed that Base had already earned over $36,000 in profits from the NFT at the time of his complaint.

“I usually like it when someone recreates/remixes my work. But when a 76 billion dollar corporation copies it, sells it, and gets $36k+ in profit without attributing me at all, it feels less fun,” Biron stated.

In response to the backlash, Base lead developer Jesse Pollak issued a public apology, explaining that the incident was unintentional. The Coinbase-backed network also admitted that its artwork unintentionally mirrored Biron’s work and promised to improve its processes to prevent similar issues in the future.

“Creativity often draws from a pool of shared inspiration, and while designing this piece we unintentionally mirrored the work of another artist without attribution We’re sorry, and we’ll be sending 100% of the proceeds to Biron,” Base wrote.

Biron appreciated Base’s response, calling it a “class act” and praising the team for respectfully handling the situation.

Key figures in the crypto industry, including Coinbase CEO Brian Armstrong and Gemini co-founder Cameron Winklevoss, have expressed strong support for the newly established Department of Government Efficiency (D.O.G.E).

This initiative, announced under President Donald Trump, aims to reshape the US economy by tackling bureaucratic inefficiencies. Elon Musk and Vivek Ramaswamy lead the department.

Crypto Leaders Welcome D.O.G.E Initiative to Streamline US Governance

On November 17, Coinbase CEO Brian Armstrong highlighted the transformative potential of D.O.G.E. He described it as a unique opportunity to enhance economic freedom in the United States while reducing government size.

“The founding fathers were geniuses but (with humility) may have missed the adverse incentives which grow the size of democratic government over time (winning elections by promising more free stuff),” He wrote.

So, Armstrong suggested constitutional amendments to ensure the lasting impact of D.O.G.E. He proposed measures like capping total government spending at 10% of GDP or aligning incentives to promote fiscal discipline. Armstrong referenced Warren Buffett’s idea of disqualifying legislators who vote for unbalanced budgets from reelection.

The Coinbase CEO also acknowledged the need for flexibility during crises, such as wars, while emphasizing long-term controls to prevent runaway spending. Armstrong further proposed the creation of a sovereign wealth fund, where every citizen would hold a share. This, he argued, could enhance fiscal accountability and public engagement in financial decision-making.

Similarly, Gemini co-founder Cameron Winklevoss expressed his own optimism about D.O.G.E, emphasizing its potential to address inflation and financial inequality. He described inflation as a “hidden tax” that disproportionately impacts lower-income households.

Winklevoss believes that by targeting inefficiency and waste, D.O.G.E can play a crucial role in reducing inflation and easing economic pressure on vulnerable communities. He stressed that such reforms are essential to ensure a more equitable financial system.

“The importance of DOGE goes well beyond reigning in absurd government spending. It will lead to a decline in inflation which is a silent tax on all Americans that confiscates wealth and is also regressive, impacting low-income folks the most,” Winklevoss wrote.

Meanwhile, another industry leader Ripple’s Chief Legal Officer Stuart Alderoty has suggested an area of focus for the department. According to him, DOGE should investigate spending inefficiencies within the Securities and Exchange Commission (SEC). He specifically questioned the use of taxpayer money on certain SEC initiatives, such as a public video series involving SEC Chair Gary Gensler.

“Could you please provide an estimate of how much taxpayer money has been wasted on these?,” Alderoty questioned.