Ethereum’s price dropped to $1,869 today as the overall cryptocurrency market fell by nearly the same percentage over the previous 24 hours.
Even though the largest altcoin has increased by 56% since the year’s beginning, ETH is currently up 3% in the previous week and only 1% in the past 30 days.
ETH has also increased by 5% since last Thursday when it fell to a two-week low of $1,775. This is encouraging.
This implies that momentum may be developing gradually, and given that the altcoin is arguably still undervalued, a significant rise may occur soon.
Is Now a Good Time to Buy as Ethereum Price Prediction as ETH Rallies Up From Recent Bottom?
Although ETH has declined, its many technical indicators indicate it is now due for a rebound.
Its relative strength index (purple) fell below 30 earlier today, indicating that traders may have oversold it and that the stock is trading at a significant discount.
However, ETH’s 30-day moving average (yellow) has yet to dip below its 200-day average (blue), suggesting it may still tumble for a few more days before fully recovering.
The coin’s rising support level (green) suggests it won’t fall too far, so now would be a good opportunity to buy before significant gains materialize.
And given the enviably solid fundamentals of Ethereum, the digital currency ought to experience a significant rally this year.
One is that the introduction of withdrawals in April did not result in a wave of selling, revealing a significant demand for ETH through the deployment of staking.
The reverse is true, as evidenced by the fact that, according to statistics from Dune Analytics, the amount of ETH staked has climbed from around 18 million in April to 21.5 million.
This indicates that roughly 18% of ETH’s total circulating supply is currently staked, but what’s encouraging is that, based on average staking ratios for other proof-of-stake cryptocurrencies, this percentage may increase to between 40% and 60%.
In other words, significant amounts of ETH will be removed from circulation, increasing demand compared to supply and possibly driving up the price of ETH.
Ethereum has the propensity to deflate depending on how busy it gets due to the switch to staking (which has limited the issuance of new tokens) and the introduction of fee burns (through EIP-1559).
Again, this will lessen the amount of ETH that is available, which will push up the price.
Then there’s the reality that Ethereum still accounts for about 57.8% of the DeFi market, making it the most popular layer-one blockchain.
This suggests widespread acceptance, and it’s extremely conceivable that Ethereum’s built-in network effects would cause it to draw disproportionately more users than its competitors during the next bull market.
Such a claim is reinforced by the frequent mention of Ethereum in adoption-related headlines, the launch of Societe Generale’s stablecoin in the euro in April, and Visa’s use of the platform to test USDC payments.
When considered as a whole, these pieces of information imply that Ethereum will continue to dominate layer-one platforms for the foreseeable future and that ETH will increase in tandem with its development.
The market may anticipate that ETH will grow from its current price of about $1,870 to $2,000 in the coming months, and depending on how positive investors get, it may even reach $2,500 or $3,000 by the end of the year.
A High-Potential Alternative
Although Ethereum’s fundamentals are quite strong, the fact that it is an established coin may prevent it from seeing many significant rallies in the future and cause it to rise steadily over time.
Since several presale tokens now promise to experience significant price increases when they list on exchanges in the upcoming few months, traders looking for market-beating gains may also consider diversifying their portfolios to include high-potential alternatives.
This includes ecoterra, a recycle-to-earn platform built on Ethereum that has earned more than $4.4 million through the presale of its ECOTERRA coin.
The Ecoterra platform, expected to go live in the second half of the year, allows customers to earn ECOTERRA and NFTs for recycling household garbage at participating recycling locations.
Users of its platform and app will be rewarded for demonstrating their use of renewable energy, and it will also include a market for carbon offsets that will allow users to exchange carbon credits for NFTs.
Ecoterra’s sale has drawn interest from investors thanks to its ambitious ecosystem; the token offering is currently in its seventh round, with 1 ECOTERRA costing $0.008500.
By the time the promotion expires in a few weeks, this will increase to $0.001, while ECOTERRA’s price may significantly increase if it listings on exchanges.