Ethereum Price Prediction

The coin is equally capable of seeing greater increases or losses in the near future, according to ETH’s indicators, which are currently in a mixed position. As an illustration, its relative strength index (purple) has started to rise once more after falling to 50 in the last few days, indicating a resumption of momentum.

Nonetheless, ETH’s 30-day moving average (red) has levelled down in comparison to its 200-day average (blue). Furthermore, given how much higher it is than the longer average, ETH might soon experience significant declines.

But, given that ETH has done an excellent job of holding its $1,600 support level, any drops may just be slight. So, despite the possibility of another short-term decline, ETH’s medium- and long-term outlooks indicate growth.

Indeed, ETH’s fundamentals continue to be so solid that long-term growth is inevitable. A recent announcement by Coinbase that it will be releasing Base, a layer-two sidechain for Ethereum, has once again highlighted this.

The debut of Base by Coinbase, which aims to “onboard 1B+ consumers into the crypto economy,” is noteworthy. Even if it only manages to win over a small portion of these users, its new endeavor will increase Ethereum’s adoption and usage.

This suggests that the price of ETH will increase over time, but so does Ethereum’s newly acquired status as a proof-of-stake blockchain. Its switch to a PoS method, which it accomplished in September, established the groundwork for it to become more cost-effective, scalable, and energy-efficient, which will only help it maintain its position as the preeminent layer-one blockchain in the cryptocurrency ecosystem.

Even today, Ethereum is responsible for 59% of the overall value that has been locked in for the entire industry. This percentage will only rise as new updates are received, especially when sharding is introduced either later this year or in 2024.

When payments juggernaut Visa confirmed that it is testing USDC stablecoin payments on the Ethereum blockchain a couple of weeks ago, it further demonstrated how strong of a position Ethereum is in. Once more, this shows that if large corporations utilize a public blockchain, Ethereum is the most likely candidate.

The Shanghai update, which will allow stakers to withdraw the ETH they have locked and received as rewards, is also about to be released by Ethereum. Although some analysts predict a short-term selloff, this is another positive development for Ethereum because it lowers the risk associated with staking for users.

ETH is expected to bounce back and return to the $1,700 level in the coming weeks before building further gains, despite a Shanghai-caused fall this month. However, the long-term pattern indicates that prices will rise to $2,000 or higher later in the year, despite the fact that past updates (such EIP 1559) gave ETH a propensity to deflate during moments of intense activity.

And now that companies like Coinbase have joined the Ethereum ecosystem, such “peak activity” is probably going to become commonplace, making ETH one of the best investments in cryptocurrency.

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