Ethereum price is unchanged over the past 24 hours, its move over the weekend to $1,567 means it is down 4% in a week and 6% over the past 30 days. While it is up 31% since the start of 2023, its $1,550 support level has remained strong over the past few days, suggesting that it will not return to last year’s lows.
And with Ethereum having some of the strongest fundamentals in the market, there is no doubt that ETH will continue to rise again following this market rally. Of course, the upcoming Shanghai upgrade – which enables withdrawals – could cause a temporary slide, but recent positive Ethereum-related news (such as from Coinbase and Visa) suggest that ETH is only going to go up in the long term. Is.
Bulls Keep ETH Above $1,500 as Ethereum Price Prediction – Here’s Where ETH Is Heading Next
ETH’s chart shows further downside before resuming the rally. Its 30-day moving average (red), for example, flatlined over the past week and now appears to be retracing back towards its 200-day average (blue), indicating additional losses Is.
Similarly, the Relative Strength Index (purple) for ETH has now fallen below 50 and is likely to move further down. It won’t go down until it hits around 30 or 20.
However, as mentioned above, the coin did a good job of holding the $1,550 support, which it has not broken since the beginning of February. And yet it quickly recovered to $1,600 within days.
So even though ETH is likely to slide further in the coming days, there is confidence that it will recover soon. That said, the market needs to expect that (potentially) Bankruptcy of Silvergate Bank doesn’t bring down other crypto-related firms in its wake, which could lead to continued selloff in the medium term.
Whereas Most exchanges have now severed ties As with Silvergate Bank, which apparently failed, ETH could struggle to hold its support levels if the latter fails to lead to a similar collapse. That said, if it’s just Silvergate that’s affected, it looks like the market selloff over the weekend has already priced in its bankruptcy, so it’s going to add more pain once it actually files for bankruptcy protection. cannot be the reason.
And once the fallout from the Silvergate collapse wears off, ETH remains better positioned than most other cryptocurrencies to continue its recovery. This is for a variety of reasons, but the underlying factor is that it is the dominant layer-a network by a wide margin, and its recent upgrades put it on track to consolidate this position in the coming months and years.
And it continues to enjoy positive news. Recently, Coinbase announced that it is launching its own layer-two sidechain for Ethereum, dubbed Base.
The great thing about the launch of Base is that Coinbase is targeting To use it to “onboard 1B+ users to CryptoKitties”. This means that it aims to add an additional billion users to the Ethereum ecosystem.
By extension, this also means an increased demand for ETH, with all layer-two transactions ultimately settled using the Ethereum blockchain and its native token. So combined with updates (such as EIP 1559) that have reduced the net mintage of new Ethereum tokens, demand for ETH relative to supply could increase significantly.
Other positive news for Ethereum includes news last month that payments giant Visa is testing USDC stablecoin payments on the Ethereum blockchain. So Coinbase is not only entering the Ethereum ecosystem, but is also one of the largest payments firms in the world.
Ethereum is also preparing to release the Shanghai Update, which will enable stakers to withdraw the ETH they have locked up and receive them as rewards. Whereas Some commentators argue that this will set off a short-term selloff.This is another positive milestone for Ethereum, as It effectively reduces the risk of users,
With all this in mind, ETH is likely to return to $1,700 once the Silvergate related drama ends. And by the end of the year, it could easily cross $2,000 and be on its way to a serious correction.