The value of ETH has illustrated its resilience on the cryptocurrency stage, with its price growing by 0.5% in the last 24 hours, taking the marker up to $1,919. This increase comes in the wake of a transfer of $116 million of the token through Kraken executed by a notably dormant investor from the Ethereum Initial Coin Offering (ICO) phase. Despite this considerable offloading, ETH rose by 2% over the past week, with 11% growth in the last 30 days and a remarkable 60% surge since the dawn of 2022.
These dynamics could reflect the indirect mainstream incline inspired by the XRP marketplace and its recent rally. Such a lucrative transfer could bring concerns of near-future instability. Still, Ethereum’s robust position within the cryptocurrency realm, fortified by firm fundamentals, leaves little room for doubt that its ascent is simply a matter of time. Importantly, ETH holds potential for future gains, evident in its rising relative strength index making strides towards 60. However, for a solid hope of consistent gains to be justified, the coin’s 30-day moving average decline calls for rectification.
Meanwhile, the weekend’s slight decline appears to have completed a minor correction phase, and further near-term drops seem unlikely. A significant support level has been consistently maintained, offering a buffer against potential falls. While sizable news surrounding dormant ETH might ignite worry, the ability to sell a hefty sum without majorly impacting the altcoin’s price should be positively perceived.
Mystery surrounds the particular transfer of approximately 61,216 ETH from a wallet holding these funds, untouched for eight years since Ethereum’s ICO in 2015. Some speculate a motive for staking rather than sale, given the absence of robust evidence.
Irrespective of potential large sales, Ethereum remains valiantly placed as one of the most prominent and valuable cryptocurrencies. As established earlier, Ethereum dominates more than 50% of the decentralized finance (DeFi) sector. Its evolution towards proof-of-stake consensus mechanism has further amplified its appeal.
Staking has led to over 24 million ETH being removed from circulation, increasing its scarcity, while the implementation of fee burning has resulted in a deflationary effect during high-traffic periods. Thus, with a dwindling supply since September, we see amplified investment allure.
These factors combined with Ethereum’s smart contract platform reputation solidify its position a vital component in any diversified cryptocurrency portfolio. With predictions for steady gain and a potential return to $2,000 in the coming weeks, ETH, only stands to grow stronger. By the conclusion of 2022, advantageous conditions could even catapult it to heights of $2,500 or even $3,000, boding well for a potential bull market in 2024.
Source: Cryptonews
