On the last day, the price of Ethereum increased by 2% to $1,657 while the cryptocurrency market increased by the same percentage. With the currency just about regaining its $200 billion market worth today, its current price indicates that it has been unchanged over the last week and has gained by 6% over the past 14 days.
Although ETH has returned 38.6% since the start of 2023, it is still a coin that is grossly undervalued. Moreover, with Coinbase’s recent announcement of a layer-two sidechain for Ethereum, it may experience extremely significant growth later in the year.
The currency is equally capable of seeing greater increases or losses in the near future, according to ETH’s indicators, which are now 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 leveled down in comparison to its 200-day average (blue). Furthermore, considering how much higher it is than the longer average, ETH could 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.
Moreover, ETH’s fundamentals continue to be so solid that long-term growth is inevitable. A recent statement by Coinbase that it would be releasing Base, a layer-two sidechain for Ethereum, has once again highlighted this.
Its launch is noteworthy because Coinbase wants to utilize Base to “onboard 1B+ customers into the crypto economy.” Even if it is only partially successful in luring these customers, its new endeavor will increase adoption and usage of Ethereum.
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 when it completed the Merge in September created the groundwork for it to become more cost-effective, scalable, and energy-efficient, all of 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 proportion will only rise when 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 earned 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 since it lowers the risk associated with staking for users.
Although ETH has seen a drop this month due to Shanghai, it is expected to bounce back and return to the $1,700 mark in the next weeks before continuing to rise. However, the long-term pattern indicates that prices will rise to $2,000 or higher later in the year, despite the fact that past upgrades (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 greatest investments in cryptocurrency.
Despite being one of the inherently most appealing cryptocurrencies on the market, ETH may decline if Shanghai allows withdrawals. Because of this, short-term traders can want to consider alternative currencies with great potential. In light of this, we’ve compiled a list of the top 15 cryptocurrencies for 2023, as determined by the staff at CryptoNews Industry Discussion.