Ethereum price started a major increase above the $3,250 resistance zone. ETH even surpassed $3,300 and aims for more upsides in the near term.

• Ethereum is gaining pace above the $3,250 level.
• The price is trading above $3,250 and the 100-hourly Simple Moving Average.
• There is a connecting bullish trend line forming with support at $3,270 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to rise above the $3,320 and $3,350 resistance levels.

Ethereum Price Regains Strength

Ethereum price started a steady increase above the $3,150 resistance zone. ETH even climbed above the $3,250 resistance to move into a positive zone. Finally, there was a move above the $3,300 resistance, like Bitcoin.

It tested the $3,250 resistance zone. A high was formed at $3,339 and the price is now consolidating gains. The bulls seem to be active well above the 23.6% Fib retracement level of the upward move from the $3,084 swing low to the $3,339 high.

Ethereum is now trading above $3,280 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $3,270 on the hourly chart of ETH/USD.

On the upside, the price is facing resistance near the $3,340 level. The first major resistance is near the $3,350 level. The next major hurdle is near the $3,420 level. A close above the $3,420 level might send Ether toward the $3,500 resistance.

The next key resistance is near $3,550. An upside break above the $3,550 resistance might send the price higher toward the $3,650 resistance zone in the coming days.

Are Dips Supported In ETH?

If Ethereum fails to clear the $3,340 resistance, it could start a downside correction. Initial support on the downside is near $3,270 and the trend line. The first major support sits near the $3,220 zone.

A clear move below the $3,220 support might push the price toward $3,200 or the 50% Fib retracement level of the upward move from the $3,084 swing low to the $3,339 high. Any more losses might send the price toward the $3,150 support level in the near term. The next key support sits at $3,050.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

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

Major Support Level – $3,270

Major Resistance Level – $3,340

Regarding Ethereum, a new concerning chapter has been penned by Truth Labs, a crypto investigation entity renowned for its analysis and exposés.

Recent claims by Truth Labs allege a potentially unsettling level of influence held by the Chinese Communist Party (CCP) within the Ethereum network. This influence, according to the investigator, could pose a threat to the decentralized vision that the network champions. 

The Wangxian Group’s Alleged Role And Influence

Truth Labs has recently turned its attention to Ethereum’s founding history and the actors involved in its early days.

The investigators’ recent findings indicate that the Wangxian group, a Chinese conglomerate, played a significant role in the early development of ETH. This suggests that entities closely associated with the CCP may have gained a “disproportionate” level of control over the network.

Delving deeper into the allegations, Truth Labs claims that the Wangxian group, identified as one of Ethereum’s early benefactors, has maintained a significant presence within the network since its inception.

In 2015, with a starting capital of half a million dollars, the group in question became involved in establishing the primary wallets of Ethereum’s creator, Vitalik Buterin. The implications of such associations raise questions about the network’s purportedly equitable structure.

Moreover, Truth Labs has raised the specter of dominance by these Chinese entities, alleging that they account for nearly 80% of the ETH mined before the 2022 Merge—an update aimed at transitioning the Ethereum blockchain to a proof-of-stake system.

Ethereum’s hidden Centralization problem:

The Chinese Communist Party. The same party using blockchain to track and control everything, Implementing Social Credit Scores, CBDC’s, and a number of other surveillance protocols.

The CCP, thru Wanxiang, and a number of other CCP… https://t.co/uYxIqUY6n5

— TruthLabs (@BoringSleuth) November 5, 2023

According to the investigation entity, the group’s influence extends beyond mere holdings, as it is purported to be a major mining entity within the network. The overarching concern is that, if true, such dominance could undermine the decentralized ethos fundamental to Ethereum and the broader crypto ecosystem.

The Potential Impact On Ethereum’s Ecosystem

Chinese entities may have caused altcoin collapses, CEX/Dex failures and rug pulls, making the situation more serious.

It is worth noting that centralizing control, especially by a single national entity, goes against what many in the crypto community stand for.

Furthermore, Truth Labs’ alerts about the rising CCP control over Ethereum’s network may reignite a critical debate on the integrity of decentralization and the network’s vulnerability to external control.

Regardless, Ethereum has remained bullish over the past week, up by 5%. The asset currently trades for $1,911 at the time of writing, up by nearly 1% in the past 24 hours.

Featured image from Unsplash, chart from TradingView