Crypto News

Ethereum (ETH) Price Analysis: On-Chain Indicators Suggest 2-3x Gains in the Offing

The growing global demand for digital assets and the web3 sector has greatly benefited Ethereum (ETH), a stable blockchain network with more than $67 billion in stablecoin market capitalization and more than $29.6 billion in Total Value Locked (TVL).

Due to its deep liquidity, which is supported by the large ERC20 ecosystem and the thriving NFT market, Ethereum has drawn the attention of more institutional investors who are looking to diversify their cryptocurrency holdings away from Bitcoin (BTC).

Additionally, since the Proof-of-Stake (POS) consensus mechanism was implemented and more than 903k validators have staked over 28.8 million ETH through the merging event and Sharpella upgrade, the Ethereum network has been regarded as sound money.

Since EIP-1559, the Ethereum network has experienced deflation, burning about 3.8 ETH to date. An increasing number of decentralised financial (DeFi) developers are drawn to these advancements in an attempt to access the Ethereum Virtual Machine (EVM). The Ethereum network contains more than 77.9 million non-zero addresses, according to on-chain data, and on average, there are over 1 million transactions each day, which is double the amount of transactions made on Bitcoin.

Recently, Ethereum co-founder Vitalik Buterin emphasised that in order to guarantee long-term acceptance of the web3 sector and digital assets, developers must carry on their work on the layer two scaling solution. Buterin also praised the Ethereum team for sticking to the original roadmap and not veering off course throughout 2023.

Closer Look at Ether Price Analysis

The spot Bitcoin exchange-traded funds (ETFs) in the US have been driving the current breakout in the price of Bitcoin, and this has also helped the price of Ethereum (ETH) gradually rise. Notably, during the cryptocurrency bear market, the price of Ethereum successfully retested the resistance/support level at $2,130, which was shown to be a nutshell.

Because of this, the price of ETH is in a good position to maintain its bullish view in the foreseeable future. Ethereum’s Market Value to Realised Value (MVRV) pricing band indicates that the next important goal range for ETH price is between $3,830 and $5,100, per Glassnode’s on-chain data analysis.

ETH Market Outlook

Despite the devastation of the 2022–2023 crypto bear market, the large-cap altcoin has seen stratospheric network growth in the last two years. Notably, with a market capitalization of over $300 billion and an average 24-hour trading volume of roughly $15 billion, the Ethereum network has developed into a sophisticated and reliable Web3 ecosystem. Having begun the year on a positive note,.

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