The price ofEthereum (ETH) has experienced a reduction to $1,835 in the past 24 hours, reflecting a 1% decrement within the preceding day. This shift mirrors the current condition of the broader cryptocurrency domain, as it too exhibits a parallel decrement of around 1%. The past month’s trajectory for ETH reveals a 6% fall, with a weekly analysis indicating a 2% drop – the reason behind these numbers might be the moderate market negativity provoked by the recent downgrade of US government debt.
However, even amid these considerations, the proponents of ETH argue that now is the time to consider the coin’s comparative discount. Their optimism is based on a healthy 53% rise seen from the dawn of the year and the robust fundamentals that continue to give ETH its strength. Hence the firm belief that a recovery is imminent.
The ETH chart analysis suggests a period of respite is near for the altcoin, driven by the presumption of no further adverse news in the coming days or weeks. The 30-day moving average of ETH and its current price are substantially beneath their respective 200-day averages, signalling a lull in momentum and positioning the coin as oversold.
Additionally, ETH’s relative strength index – which dipped below 30 at the week’s onset – remains constrained, reinforcing the belief that the coin doesn’t have much room for further fall, making a future rise likely.
However, an undercurrent of scepticism is warranted. ETH’s support level has declined noticeably since mid-July, representing the possibility of more downslides before a recovery ensues. The recent downgrade of US debt, which sent ripples through both cryptocurrency and global stock markets, could provide additional uncertainty for investors.
Regardless, it’s essential to recognise that the fundamentals in ETH’s favour could make it a resilient currency. As the most significant layer-one blockchain network regarding Total Value Locked (TVL), Ethereum is primary to an extensive list of coins – demonstrated by the 25 million ETH (approx. 20% of the total supply) taken out of circulation by staking intitiated the previous year. This withholding, compounded by the introduction of fee burning, has led to a shrink in ETH’s unstaked and staked supply by 350,000 since September 2022.
Such adoption magnitude and bullish tokenomics will likely stimulate more staking and burning – driving down supply and increasing demand as a result. Whisperings from the market indicate that the ETH price could hit $1,900 in the upcoming weeks, propelling as high as $2,500 by year’s end, contingent on a bullish sentiment surge.
Source: Cryptonews
