ETH, the native cryptocurrency that powers the blockchain Ethereum, continues to suffer from strong selling pressure after the Fed meeting. On Friday, ETH, also known as Ether, was down more than 7.17 %, after hitting its lowest monthly threshold below its 21-day moving average (DMA) earlier in the session. ETH/USD is about to break below $1,200, which could trigger another wave of selling towards late November lows in the $1,150 area.
Price prediction: what’s next for ETH?
The recent fall of Ether and its break below its 21-day moving average suggest that the positive momentum that has taken ETH to $1,350 from November lows below $1,100 is now broken. It should be recalled that this moving average had been an important short-term support for ETH in recent weeks. Ether investors note that the cryptocurrency remains locked into the confines of a longer-term downtrend that has been ongoing since August.
The Fed Chairman’s pessimistic tone, Jerome Powell, at Wednesday’s meeting appears to have dashed the prospect of a year-end recovery. Additionally, ETH’s technical picture seems to have taken a turn for the worse, suggesting that another November-like bounce back into the $1,070 area is much more likely than that. a bounce towards $1,500.
Can a summer 2.0 for DeFi trigger an Ether rebound?
Hashkey Capital analysts argue, in their latest DeFi ecosystem landscape report, that the outlook for the DeFi space for 2023 is excellent. Indeed, they state that “Many DeFi apps are now easier to use than home banking apps, paving the way for more users in 2023.” They add that “the general public is also better informed about digital wallets thanks to the large social media companies that integrate them”. Analysts cite the examples of Reddit, Instagram and Twitter, which are ramping up initiatives to add cryptocurrency-based services to their platforms.
According to analysts at Hashkey Capital, it could be that in 2023, DeFi applications will unlock billions of liquidity in the market for non-fungible tokens (NFT), which is growing rapidly. The analysts continue that “ETH and Ethereum-based assets as well as L2-based ones are the main assets used in DeFi.” They add that “DeFi protocols are one of the largest users and fee payers on the Ethereum chain.”
Accordingly, they explain that if 2023 is a good year for DeFi, it will probably also be a good year for the price of Ether. Indeed, Hashkey analysts note that “more DeFi-related activity will increase demand for Ether, and it will also burn more Ether (EIP1559).” Hence, they add that “More Ether burns will lead to more Ether scarcity and deflation…which will lead to higher Ether prices and therefore more DeFi activity, and so on.”
Can Ethereum succeed in the bet of 2023?
One of the biggest dreams of ethereum proponents is that this crypto, currently the second largest cryptocurrency in the world by market capitalization, could ‘overthrow’ bitcoin, the world’s largest cryptocurrency by terms of market capitalization, in the years to come. But this dream is also one of the biggest nightmares of bitcoin supporters. This concept of “reversal” refers to the market capitalization of Ethereum which could exceed that of bitcoin.
Ethereum currently has a market capitalization of nearly $148 billion, compared to around 326 billion for bitcoin. In other words, the total value of all BTC tokens in circulation, according to the current price, is approximately 2.2 times greater than the total value of all ETH tokens currently in circulation.
Therefore, one is entitled to ask whether ethereum can exceed the bitcoin in 2023? This is a possibility that traders should not rule out. Ethereum and bitcoin blockchains are very different. The bitcoin blockchain is compatible with “smart-contracts”, which means that DeFi applications can be created to work on this platform. Hashkey analysts noted above that a recovery in DeFi markets in 2023, perhaps when global macro conditions improve and adoption trends continue, could boost ETH significantly.
By comparison, bitcoin operates exclusively as a cryptocurrency ledger and does not have a thriving DeFi ecosystem within it. Moreover, to secure his blockchain, he always uses the proof-of-work consensus mechanism (PoW), which consumes a lot of power. On the other hand, since the September “merger”, ethereum has adopted the Proof of Stake (PoS) consensus mechanism, which is much more energy efficient. As a PoS blockchain, ETH can now be used to generate stable and predictable returns, which is another distinction from bitcoin, which remains a non-performing asset.
Considering all these reasons, if a general recovery of the cryptocurrency market is confirmed in 2023, it is quite possible that ethereum could claim the title of the largest cryptocurrency in the world in terms of market capitalization.
Altcoins that offer higher returns
For the past few weeks, cryptocurrencies have been trading irregularly, which has led some traders to look to alternatives with better short-term potential. Here are some of the main pre-sales in the marketallowing investors to embark on the adventure of crypto-currencies.
FightOut (FGHT): launch of the presale
The FightOut presale, a brand new move-to-earn (M2E) fitness app and gym chain that seeks to bring the fitness lifestyle to the web3, has debuted. Investors believe the project could transform the existing web3 M2E landscape. Indeed, it should be remembered that existing M2E applications, such as StepN, only track steps and require the purchase of expensive non-fungible tokens (NFTs) to participate. Yet FightOut takes a more holistic approach to tracking and rewarding its users for their exercise and activity. Moreover, FightOut does not require any purchase of expensive tokens to participate.
FightOut FGHT Tokens are currently selling at a price of 60.06 per 1 USDT. Interested investors are urged to act quickly to secure their tokens, as the presale has already raised over $2.08 million in just a few days. FGHT is the token that will power the FightOut cryptocurrency ecosystem.
Dash 2 Trade (D2T): the presale begins its final phase
If you want to invest in a promising new cryptocurrency trading platform, look no further than Dash 2 Trade. This up-and-coming social trading and analytics platform hopes to take the cryptocurrency trading space by storm with its many unique features.
Among these features are trading signals, social sentiment and performance indicators on the platform, a pre-sale token evaluation system, a token quote alert system and a strategy back-testing tool. The Dash 2 Trade ecosystem will be powered by the D2T tokenwhich users will need to purchase and hold in order to access platform functionality.
Dash 2 Trade is currently conducting a pre-sale of tokens at deeply discounted rates. The amount of sales recently exceeded $9.9 million. This Friday, the presale dashboard will be released, as the development team is currently ahead of schedule. The tokens are currently selling at $0.0533 each and will be listed on several centralized platforms in about a month.
Calvaria (RIA): final pre-sale stage in progress
Big blockchain-based games like Axie Infinity lost significant popularity in 2022. As a result, many investors interested in cryptocurrency gambling are looking for alternative routes. Calvaria, an up-and-coming cryptocurrency battle card game, might be a good alternative. Calvaria seeks to drive cryptocurrency adoption by building a bridge between the real world and cryptocurrency, a fun and accessible cryptocurrency game.
The Calvaria RIA Token Presale should be of interest to investors. Calvaria has now raised $2.45 million, including $97.5 million in a single purchase last week by a cryptocurrency whale. The presale is in the final stages, and only 21% of the tokens remain.