Ethereum (ETH) is a cryptocurrency that provides support for the world's largest and most widely used smart contract, the first layer blockchain Ethereum. It has been rising in recent transactions, with the last change of hands price rising by approximately 0
Ethereum (ETH) is a cryptocurrency that provides support for the world's largest and most widely used smart contract, the first layer blockchain Ethereum. It has been rising in recent transactions, with the last change of hands price rising by approximately 0.5% in the past 24 hours, reaching a price range of $1610. It is currently up nearly 5% from its earlier weekly low of $1530.
Since the nervousness surrounding FTX's plan to sell $3.4 billion in digital assets earlier this week dampened market sentiment, there has been a widespread recovery in the cryptocurrency market.
On Tuesday, cryptocurrency media quoted Jeff Dorman, the chief information officer of digital asset investment company Arca, as saying that the market's response to potential FTX sales is overreacting.
He said, "The way cryptocurrency market makers and traders seize FTX supply indicates a complete misunderstanding of the operation of the joint sales process." He added, "This is not a process that everyone can unlock for their own venture capital..." This is a court ordered procedure, and Galaxy will sell very slowly and opportunistically.
According to CoinGecko's data, the 24-hour trading volume in the Ethereum market is close to $10 billion, indicating potential bargain hunting activity.
US inflation continues to decline
In other aspects, although the overall year-on-year and core month on month data are slightly higher than expected, US inflation data may also buffer market sentiment.
This is because the core inflation rate has significantly decreased year-on-year, from 4.7% to 4.3%, easing the pressure on the Federal Reserve to continue raising interest rates.
The US Central Bank began a historic interest rate hike cycle in March last year, and has since raised interest rates by 525 basis points to 5.25-5.5%.
The Federal Reserve monitors core inflation more closely because core inflation better reflects the price pressure on the US economy than overall data, which is easily affected by fluctuations in food and energy prices.
Due to the fact that interest rates are much higher than the core inflation rate, which means that real interest rates are positive, the Federal Reserve will want to avoid excessive tightening of financial conditions, as they still hope to achieve a "soft landing" scenario for the US economy, defined as controlling inflation without causing an economic recession.
Price Forecast - Where will Ethereum (ETH) go next?
Given that the recent technological outlook for cryptocurrencies remains unfavorable, the stability of Ethereum prices in the near future cannot alleviate concerns about prices falling below $1500.
Ethereum is still stuck below the 21 day moving average, which has recently provided strong resistance and is also below the downward trend that began in August.
The short-term outlook needs to break through these resistance levels in order to improve.
At present, due to the formation of a bearish downward triangle structure in Ethereum, the possibility of falling below $1500 is still high.
The possibility of retesting the March low of around $1370 remains high.
It can be said that the basic outlook does not guarantee that prices will fall back to this level, so there may be strong bargain hunting.
Ethereum's future ETF may receive approval from the United States in the coming months, while spot ETFs may receive approval next year.
At the same time, Ethereum is currently able to avoid the anger of the US SEC being labeled as a security (unlike major competitors such as BNB, SOL, and ADA).
After the sharp decline in 2022, Ethereum seems to be still in the early stages of accumulating a new bull market and has not yet truly begun.
Can ETH reach $10000?
If Ethereum is in the early stages of a new bull market, there may be a huge rise in the future.
ETH has risen from a bear market low of around $70 in December 2018 to a historical high of $4800 in 2021, an increase of 5700%.
As the market matures and achieves higher market value over time, Ethereum is unlikely to rise by 5700% from its 2022 low of $880 in this bull market, which will result in its price exceeding $50000 and market value exceeding $11 trillion.
But can ETH rise 11-fold from its low point in 2022 to over $10000 in the next few years?
Of course, assuming that Ethereum blockchain can maintain its rapid adoption and position as a leading Web3 infrastructure provider.
Please remember that due to its token destruction mechanism, ETH will experience deflation. With the popularity of ETH pledge, more and more ETHs are constantly being removed from the supply, and one of the fastest growing areas for cryptocurrency is the Ethereum Layer 2 protocol space (such as Arbitrum, Optimism, Base, and Polygon), all of which rely on Ethereum's underlying security.
Ethereum will also undergo major network upgrades in the coming quarters to address scalability issues and further drive its use cases, such as danksharding.
At present, the supply of ETH tokens is slightly over 120 million. If the price is $10000, it means a market value of approximately $1.2 trillion. This seems very reasonable and achievable in the coming years. Assuming a cryptocurrency bull market also occurs, currencies such as Bitcoin will also rise by $100000 per coin.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
