In the past 24 hours, THE ethereum price increased by 2%. It has thus exceeded the resistance of $1,800, which suggests further increases in the days to come.
At $1,800, ETH is up 7% in a week and 25% in a fortnight. Since the beginning of the year, largest altcoin also increased by 50%.
Additionally, with the Shanghai Update scheduled for April 12, the ability to withdraw ETH from staking can only boost the price of ETH in the medium to long term. It is therefore likely that staking will become more attractive for a greater number of investors.
Ethereum Price Prediction as Investors Push ETH Beyond $1,800 Resistance Zone: Where Is ETH Heading Right Now?
The ETH chart suggests that this cryptocurrency is still surging as its indicators deny any downturn.
The relative strength index (purple) for ETH remains near 60, after falling from 30 at the start of the month. He is therefore left lots of leeway to continue rising before becoming overbought.
Similarly, ETH’s 30-day moving average (red) continues to rise above its average at 200 days (blue) and doesn’t seem to want to stop anytime soon.
Furthermore, since ETH broke through the $1,800 resistance levelit could indeed progress and reach other levels in the days to come.
Certainly, the broader market is currently uncertain, with the possibility of legal action by the SEC against Coinbase and the global financial system which remains under pressure. However, Ethereum fundamentals continue to suggest that the altcoin should continue its ascent.
The main reason for this increase is in the shanghai update aforementionedwhich is already running on Goerli’s testnet.
Shanghai will allow the withdrawal of ETH accumulated in staking, including staking rewards. Although some have claimed that the update will result in an increase in sales pressurethe negative impact of this update will actually be quite limited.
The reason is as follows: staked ETH withdrawals are not always possible and cannot take place at the same time. Besides, the developers have set daily limits for the number of validators who can withdraw 32 ETH per day.
This limit is currently set at 1,575 effective withdrawals per day.given that the total number of active validators is between 458,752 and 524,288.
Since a large portion of Ethereum validators are in the red, many will choose not to touch their staked ETH. As a result, the market is unlikely to experience a deluge of sales.
Since then, Shanghai is more of a plus than a minus for ETH. Indeed, this is another important step in the evolution of Ethereum as a proof-of-stake blockchain.
More important again, Shanghai will reduce the risk of staking for users, as any potential staker will know that they will be able to recover their staked ETH and rewards.
This fact alone is likely to generate increased interest in ETH from institutional investors. The latter may indeed increasingly wish to participate in staking in order to earn passive income.
Another reason to attract new investment is the fact that ETH has become a semi-deflationary token from updates”The Mergeand EIP 1559. These two updates mean that Ethereum actually destroys more ETH than it issues during high traffic times.
This trend is likely to increase over time as Ethereum attracts more users and customers, pushing the price of ETH on the rise.
For this reason, it is not unrealistic to expect that ETH Surpasses $2,000 in Next Monthseventually reaching a level of around $3,000 by the end of the year.
The news about Ethereum adoption also support this optimism. Coinbase announced last month the launch of its own level 2 parallel blockchain for Ethereum.
Such a move is significant, as it implies that Coinbase will actively work to attract more users not only to its new two-layered platform. But it will also attract users to the main Ethereum blockchain.
Thus, over time, Ethereum is likely to solidify its position as the largest layer 1 blockchain in terms of total blocked value. As a result, the price of ETH should continue to benefit from this initiative.
When to buy Ethereum?
Some argue that ETH could be near the end of his rebound current in the short term. However, it is almost certain that the token will experience further long-term gains throughout the year.
Nevertheless, real substantial gains are likely to appear after several months or even longer. Therefore, traders may prefer to consider higher returns than ETHas a number of new altcoins and pre-sale tokens currently show real potential.
Cryptonews’ Industry Talk team has studied these tokens and come up with a list of the Best Cryptocurrencies to Buy in 2023. Each of them has good short-term and long-term prospects.
This list is regularly updated with new new altcoins and ICO projects.
Disclaimer: The Industry Talk section features views from cryptocurrency industry players and is not part of Cryptonews.com editorial content.