Since failing to break the early November resistance at the $1,675 area late last week, ether ,ETH), the token that gives power Ethereum Blockchain has been in consolidation mode. It was last seen moving horizontally at $1,600 as traders monitor upcoming macro drivers including US Q4 2022 GDP growth data on Thursday and December core PCE inflation data on Friday.
Both data readings could fuel expectations of Fed tightening this year, which could affect crypto – evidence of slowing US inflation and growth resulting in lowering expectations for the Fed crypto is lifted so far this year. Indeed, despite its recent consolidation, Ethereum Still trading up 35% so far this year, meaning the world’s second-largest cryptocurrency by market capitalization is on course for its best monthly performance since July 2022.
Where next for ETH?
Positive macro tailwinds, as well as optimism of ethereum An upcoming upgrade that would allow withdrawals could support further upside. Indeed, progress on the so-called “Shanghai” hard fork is going smoothly – a core Ethereum developer just announced on Twitter that the developers are working on a new testbed to test ETH withdrawals that will be released soon – net has been created. Specialty.
Meanwhile, there could be another potential tailwind if ETH supply conditions remain deflationary. according to data from ultrasound.moneyETH’s annualized inflation rate dropped into negative territory again at the beginning of last week for the first time since November.
A break above the $1,675 resistance area could open the doors for a bullish rally towards the next key resistance area near $1,790 and then towards the summer 2020 high of $2,030.
Experts guess their price
According to the algorithm-driven crypto forecasting website wallet investorEthereum is likely to trade slightly above $700 in a year’s time, a downside of about 55% from current levels.
The analysts at DigitalCoinPrice are not so bearish. Their algorithm predicts an end of 2023 at around $3,450, which is an impressive 100% upside from current levels.
Meanwhile, according to a recent survey of 55 fintech experts conducted by Finder.com, Ethereum is expected to end 2025 at $5,150 per coin before rising to $11,700 in 2030. Anton Elment, CEO and co-founder of Osm Finance, explained that he is bullish on ETH because last year’s merger has turned ETH into both a deflationary and a yield-yielding asset.
He added that Fed tightening-induced pessimism should subside in 2023, while concerns about ETH staking still locked in by the Shanghai hard fork upgrade coming later this quarter should also subside sooner.
Morpher CEO Martin Fröhler also outlined a bullish outlook. According to the survey, Foehler expects massive institutional demand for ETH in the coming years as a result of the positive attributes of the cryptocurrency. These include the roughly 5% yield of ETH via staking, its eco-friendly nature after being merged with Proof of Work, the fact that it is classified as a commodity, and the fact that ETH has There is a regulated futures contract for hedging on the CME. price volatility.
Is It Too Late to Buy Ethereum?
If the above bullish forecast is correct, it is certainly not too late. Yes, it would be better to scoop ETH back in June 2022 when it was at the low of $800 per token. But if you’re a long-term investor looking to hold Ethereum until it rallies above $10,000, it won’t matter whether you bought at $800 or at the current level of $1,600.
Ethereum is still down about 65% from its late 2021 all-time high of $4,800. So far in Ethereum’s history, buying it when it is still down 65% from its recent all-time high has never been a profitable strategy, even if investors haven’t been able to bottom.
ethereum options
If you are looking for ETH as well as other high-potential crypto projects, we review the Top 15 Cryptocurrencies for 2023, as analyzed. crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
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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