Ethereum price dropped to $1,552 today, representing a 5% drop in the past 24 hours and 6% in one week. The market plunged amid a selloff due to Kraken paying the SEC $30 million and Agreed to end all staking services for US-based clients,
Despite this knock on the market, Ethereum remains a strong prospect for investors, with the altcoin currently seeing over $10 billion in 24-hour trading volume (actually over $11 billion at last count). And with Visa recently testing it’s stablecoin payments on the Ethereum blockchain, there’s plenty of reason to doubt that ETH will once again recover.
$10 Billion Trading Volume Comes as Ethereum Price Prediction – Could $ETH Reach $2,000 Soon?
Based on the indicators alone, ETH is currently in further losses. Its 30-day moving average (red) appears to be a crest with respect to its 200-day (blue), so it – along with the price – should be due to decline.
Furthermore, the Relative Strength Index (purple) for ETH has dropped below 50 and is likely to continue to decline. Thus, it looks like there could be more losses for the altcoin later this week.
As of yesterday, ETH was protected by the $1,600 support area. However, it looks like yesterday’s news has provided the kind of negative event that forces the asset to drop from such levels.
And it could drop even further, given how much ETH – which is now a proof-of-stake cryptocurrency – relies on staking. In fact, it’s worth noting that ETH is down more than bitcoin, down 3.5% over the past 24 hours, despite the decline in the overall market.
That negativity aside, members of the cryptocurrency community have already argued that the SEC’s charges against Kraken — and Kraken’s settlement — don’t necessarily mean the end of betting in the US.
For example, Coinbase has already insisted that it will not end its own staking services, and it is prepared to fight the issue with the US securities regulator.
This leaves plenty of hope for continued stakes in the US, while apparently the rest of the world remains unaffected by the SEC’s most recent power grab.
And looking at Ethereum, its strong fundamentals provide plenty of reason to doubt that it will rise again anytime soon. For example, this past week brought news that payments giant Visa is testing USDC stablecoin payments on the Ethereum blockchain.
This is very bullish for Ethereum, and Visa’s growing involvement with the platform could help it solidify its dominant position with the cryptocurrency ecosystem. In fact, some analysts believe that ETH has outperformed bitcoin this year, with Mike McGlone of Bloomberg being the most notable example.
There are various reasons for this optimism. For one, the merge not only kept Ethereum from becoming more scalable, but along with other upgrades (such as EIP 1559) it also gave ETH a tendency to become deflationary during periods of peak activity.
With all this in mind, there remains a strong possibility that ETH will not only return to $1,600, but will soon start troubling other levels as well. This includes $2,000, which is a realistic target for this year, while other levels can be achieved if the market in general manages to break free of negative news.
Is Now a Good Time to Buy Ethereum?
Despite ETH’s strong fundamentals and long-term potential, it might not be a good idea to buy it now, given the outcome of Kraken’s settlement with the SEC tomorrow. However, there are many other high potential altcoins that promise gains in the short term as well as in the long term.
Thus, we list down the top 15 cryptocurrencies for 2023, as analyzed by crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects, so be sure to check back for new entries.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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