Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject
When Ethereum switched from proof-of-work (PoW) to proof-of-stake (PoS) in September 2022, more people, including institutions, were interested in staking.
Read Price Prediction for Ethereum [ETH] 2023-24
According to Diogo Mónica, co-founder and president of Anchorage Digital, a cryptocurrency bank with a market cap of over $3 billion, the Merge’s success transformed Ethereum from “a smart contract platform lagging behind” into “something that was doing things properly.” This is accurate: After the Merge, institutional interest in ETH staking rose, according to Matt Hougan, CIO at Bitwise Asset Management.
As ETH dominance has increased compared to other cryptocurrencies over the past few years, Ether’s bullish setup vs Bitcoin is apparent. Both Bitcoin and Ethereum have consolidated over the week as the broader crypto market continues to enjoy a bullish spell.
ETH surged upwards of $1,600 last week before dropping to $1,587.08 today. Its market capitalization has risen from $147 billion to $194 billion since last month, before reaching over $200 billion a few days ago. It settled down at $194 billion at press time.
The price of Ethereum has lately undergone a significant correction, yet the whales have been purchasing at every decline. The fifth-largest accumulation day in a year was recorded last week as ETH whale activity reached a new level. As the FTX problem developed over this month of November, Ethereum whales have been building up. According to a Santiment report,
“Ethereum’s large key addresses have been growing in number since the #FTX debacle in early November. Pictured are the key moments where shark & whale addresses have accumulated & dumped. The number of 100 to 100k $ETH addresses is at a 20-month high.”
It almost reached the lows during the FTX collapse-driven meltdown of the cryptocurrency market, but it rapidly bounced back and was able to maintain above those levels as well. This strengthens the argument since Ethereum has typically outperformed Bitcoin.
Given everything, buying Ethereum must be a sound investment in the long term, right? Most experts have positive predictions for ETH. Furthermore, the bulk of long-term Ethereum price projections are upbeat.
Why are projections important?
Since Ethereum has seen phenomenal growth in recent years, it is not surprising that investors are placing significant bets on this cryptocurrency. Ethereum gained traction after the price of Bitcoin dropped in 2020, following a protracted period of stagnation in 2018 and 2019.
Interestingly, much of the altcoin market remained idle even after the halving. One of the few that picked up the momentum quickly is Ethereum. Ethereum had increased by 200% from its 2017 highs by the end of 2021.
Ethereum may experience such a spike thanks to several crucial factors. One of these is an upgrade to the Ethereum network, specifically a move to Ethereum 2.0. Another reason is the Ethereum tokenomics debate. With the switch to Ethereum 2.0, ether tokenomics will become even more deflationary. As a result, there won’t be as many tokens on the market to meet increasing demand. The outcome might increase Ethereum’s rising momentum in the future.
In this article, we’ll take a quick look at the cryptocurrency market’s recent performance, paying particular attention to market cap and volume. The most well-known analysts’ and platforms’ predictions will be summarized at the end, along with a look at the Fear & Greed Index to gauge market sentiment.
Ethereum’s price, volume, and everything in between
Ethereum, at press time, was trading at $1,591, showing resistance for the past few weeks following the FTX debacle. Early investors have, however, tripled their investments yearly, thanks to its high ROI.
Ether’s spot market activity has also increased, with the cryptocurrency surpassing Bitcoin as the most traded coin on Coinbase a while back.
Even though it can be difficult to forecast the price of a volatile cryptocurrency, most experts concur that ETH may once again cross the $4,000 barrier in 2022. And, according to a recent forecast by Bloomberg intelligence analyst Mike McGlone, the price of Ethereum will conclude the year between $4,000 and $4,500.
Additionally, according to a report by Kaiko on 1 August, ETH’s market share of trading volume will reach 50% parity with Bitcoin’s for the first time in 2022.
According to Kaiko, ETH outpaced Bitcoin in July as a result of significant inflows into the spot and derivative markets. Most exchanges have seen this surge, which can be an indication of returning investors. Additionally, a rise in average trade size is the exact reverse of what has been seen so far in 2022’s downturn.
On 2 August, Open Interest (OI) of Deribit Ether Options priced at $5.6 billion exceeded the OI of Bitcoin valued at $4.6 billion by 32%. This was the first time in history that ETH surpassed BTC in the Options market.
In fact, a majority of cryptocurrency influencers are bullish on Ethereum and anticipate it to reach incredible highs.
Given the anticipation around the merge, Ethereum has become the talk of the town. The second-largest crypto has beaten the king of crypto to become the most in-demand crypto. A quick division of volume by market capitalization of both cryptos will reveal Ethereum’s relative volume is in fact greater than that of Bitcoin.
While the broader Ethereum community is looking forward to the environment-friendly PoS update, a faction has emerged in favor of a fork that will retain the energy-intensive PoW model.
The faction is mostly made up of miners who risk losing their investment in expensive mining equipment since the update would render their business model useless. Prominent Chinese miner Chandler Guo stated on Twitter last month that an ETHPoW is “coming soon”.
Binance has clarified that in the event of a fork which creates a new token, the ETH ticker will be reserved for the Ethereum PoS chain, adding that “withdrawals for the forked token will be supported”. Stablecoin projects Tether and Circle have both reiterated their exclusive support for the Ethereum PoS chain after the merge.
TradingView expressed the same opinion at the time this article was written, and their technical analysis of the Ethereum price indicated that it was a “Buy” signal for ETH.Ethereum (ETH) Price Prediction 2025-2030: ETH continues to surge — Cardano Bits
Categories: Economic History
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