Ethereum price has fallen by 2.5% in the last 24 hours, reaching $1,641 amid a 2.5% drop in the overall market today. Despite this drop, its current price means it is up 5% in one week, while it is up 37% since the start of the year.
As the cryptocurrency market is recovering this year, ETH is one of the coins best positioned to rally. With arguably the best fundamentals in the market and enviable network effects, it could see some huge price increases as 2023 continues to solidify its position as the largest layer-a smart contract platform out there.
ETH Spikes 5% in One Week as Ethereum Price Predictions – Where Is ETH Now?
Indicators for ETH suggest that the altcoin may be due for a decline in the coming days, with its Relative Strength Index (purple) starting to drop below 60. Similarly, its 30-day moving average (red) has halted its climb with respect to the 200-day (blue), and looks set to turn back down, bringing ETH price with it.
A key support level to watch here is the $1,600. If ETH breaks below this price, more heavy selling could be on the cards, with an eventual decline for the coin below $1,600 to just under $1,500.
Misconceptions aside, ETH has some of the strongest fundamentals in the market. Its total value – locked in at $28.85 billion – accounts for 58.7% of the entire DeFi sector, although this percentage would be even higher if you also included Ethereum-based layer-two networks (such as Polygon).
Given its early mover advantage and huge network effects, Ethereum continues to attract investors and users who want to be the platform on which ‘everything else’ is. And with Ethereum successfully completing its transition to proof-of-stake in September, it has laid the groundwork for increasing its speed, scalability and efficiency.
In fact, it looks like Ethereum has only grown in stature since the September merger, with the start of the month coming with news that payments giant Visa is testing USDC stablecoin payments on the Ethereum blockchain. added to Previous Ethereum Cheerleading from VisaThis growth has been very rapid for Ethereum, suggesting that big players are betting on its success.
Furthermore, Ethereum is gearing up for the Shanghai update, which will enable the withdrawal of staked ETH. While some have argued that this will result in a flood of newly issued ETH entering the market, it is likely to have the opposite effect, in that it completes the transition to Ethereum’s proof-of-stake consensus mechanism. .
In fact, the fact that people can withdraw their staking rewards will encourage more people to invest in the Ethereum ecosystem. At the same time, Shanghai introduces a number of updates that are necessary if Ethereum is to implement such innovations as sharding, which would enable it to process transactions in parallel.
In other words, Shanghai sends Ethereum on a path to becoming a more scalable network, and upgrade implementation will likely result in an increase in Ethereum price.
At its current price, ETH could go as high as $1,700 once the current decline ends. After that, the arrival of Shanghai and other positive adoption news could propel it to $1,800 and higher, potentially reaching $2,000 by the middle of the year.
More generally, there are various reasons to doubt continued price increases in 2023. To begin with, mergers and upgrades such as EIP 1559 have given ETH a tendency to become deflationary during periods of busy activity.
On top of this, whales and other large investors have been delisting ETH from exchanges over the past few months. For example, data compiled by Sentiment shows that the value of ETH stored by exchanges has fallen by 37% since the merger (in September), with the total amount of ETH falling by 30% over the same period.
As Shanghai is implemented and staking becomes more widespread, we can expect more ETH to be delisted from exchanges. The result is that with EIP 1559 and other ‘deflationary’ updates, the supply of ETH will decrease, driving the coin’s price higher.
Is Now a Good Time to Buy Ethereum?
While ETH certainly isn’t hitting a low right now, it may not experience a substantial rally until after the Shanghai upgrade at the earliest. In light of this, we’ve taken a look at other high-potential coins and put together a list of the top 15 cryptocurrencies for 2023, as analyzed. 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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