Ethereum Price Consolidates as Bullish Momentum Fades

• At the time of writing, ETH is trading at $2278, down 0.51% in the last 24 hours.
• If the price manages to go below $2257 then it will likely decline further to test $2223.

Since the Merge, around 339,121 ETH have left circulation, and deflation accelerated dramatically in the fourth quarter of 2023. The total circulating quantity of Ethereum (ETH) was 120.18 million as of this writing, the lowest since the network switched from proof-of-work (PoW) to proof-of-stake (PoS).

An annual rate of 0.220% was the shrinkage of the net supply. There would have been an annual inflation rate of 3.168% and a total supply rise of almost 4.8 million ETH if the changeover hadn’t happened.

Developers of Ethereum are ramping up testing for the Dencun upgrade, a big milestone arriving next year that will increase data storage capacity via a new method called “proto-danksharding.” As of now the developers have set January 17 as the date for the highly anticipated upgrade.

Consolidation Phase

At the time of writing, ETH is trading at $2278, down 0.51% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is down 14.31%. The price faced severe selling pressure after climbing all the way till $2343 on December 23. The price faced minor correction from this level, however, it managed to find support around the $2275 level. 

Source: CoinMarketCap

If the price manages to go below $2257 then it will likely decline further to test $2223 support level. If the price also breaks below this support level then it will likely test $2141 level. On the other hand, if the price manages to climb above $2310 then it will likely test $2343 resistance level. Breaking above $2343 level will likely see price starting a fresh rally all the way till $2532 resistance level.