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Binance, Review of Ethereum Price Trend - From Q1 to Q2 2022
What to expect from Ethereum this year? Here is a review of ETH Q1 2022.
Ethereum Q1 2022 Review
Ether opened the first quarter of 2022 at $3,671.01, having dropped more than 40% in 24 days to open the year to a quarterly low of $2,151.00.
Despite a poor start, the 3-day candlestick chart shows that Ether successfully held the support level of the 200-day moving average, and the 100-day moving average became resistance.
In the last week of Q1 2022, ETH managed to break above the 100-day SMA on the 3-day candlestick chart, but the 50-day SMA stopped the upward momentum. As a result, Ether’s Q1 2022 close ends at $3,281.42.
Support and Resistance
The trading history for the first quarter of 2022 shows that the vast majority of Ether traded at an average price of $2,948.31. About 4.54 million addresses bought more than 17.49 million ETH in this price range, which became one of the most critical support levels.
With little to no major resistance ahead, Ether has a lot of potential to continue rising as long as it continues to trade above $2,948.31 over the next few quarters.
Failure to hold the demand zone above $2,948.31 could well be a bad prospect, as the next strong support is well below $1,656.46, with 8.87 million addresses holding 28.67 million ETH.
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Network growth
For the first two months of the first quarter of 2022, retail investors did not seem to be focusing on ether. The number of new addresses created daily on the Ethereum network dropped by 41.80%, with a peak of 121,358 addresses created on January 5, and a minimum of 70,629 addresses created on February 24.
After such a slump, the Ethereum network expanded again, recording an average of 85,132 new addresses per day throughout March. The indicators on this necklace are recovering steadily, indicating that user usage is increasing, which is conducive to price increases.
Supply and demand
The last month of the first quarter of 2022 saw a surge in retail investor demand for ether, which just coincided with a significant drop in trading platform margins. About 1,397,800.53 ETH were flowed out of the wallets of well-known cryptocurrency exchanges, and the amount dropped by 6.30% between February and March 31.
Additionally, approximately 2,134,448.00 ETH were deposited into the Ethereum 2.0 deposit contract. In the first quarter of 2022, 721,302.05 ethers were destroyed , and a total of 2,855,750.05 ethers were withdrawn from circulation. A large amount of ETH has flowed out of the exchange platform, and with many ETH withdrawn from circulation, the market seems to have staged a supply crisis.
The first quarter gainers and losers
Best performing sector in Q1 2022: Layer 1
