By Brenda Collins
Amid market consolidation, the price of Ethereum, the second-largest cryptocurrency by market capitalization, has unexpectedly increased. Ethereum prices are circling the $1,888.20 level after an amazing climb of 8.33% over the last seven days.
Many traders have expressed surprise by this price increase because most significant cryptocurrencies have declined over the past few weeks, and the broader cryptocurrency market has been in a depression. The price of Bitcoin has also recorded a decrease of 3.5% over the same period, but Ethereum has managed to defy the trend and keep maintaining an upward trend.
The anticipated release of Ethereum 2.0, a significant upgrade to the current Ethereum network that promises to improve scalability, security, and energy efficiency, has drawn attention to the Ethereum network in recent months.
A new consensus mechanism will also be included as part of the upgrade, switching from the present proof-of-work system to a proof-of-stake system, which is anticipated to use less energy and speed up transactions.
Implementing the EIP-1559 proposal, which seeks to increase the efficiency of the Ethereum network by introducing a new fee structure, is one of several planned changes to the Ethereum network in addition to the release of Ethereum 2.0. The Ethereum community has been very excited about these changes, with many hoping they will boost the value of the cryptocurrency.
Ethereum Community Welcomes The Current Development, As Optimism Grows
The recent surge in price has been welcomed by the Ethereum community, who see it as a validation of the network’s potential and the progress it has made in recent years. Many analysts believe that the recent surge in price is just the beginning and that Ethereum has the potential to reach new heights in the coming months.
Some have even predicted that Ethereum could surpass its all-time high of $4,356.99, achieved in May 2021. There are worries that the Bitcoin market is overpriced, and a correction may be imminent. The market has experienced multiple big corrections, and something similar may happen soon.
The Ethereum community is optimistic about the network’s future despite these worries. Ethereum is expected to continue to play a big role in the blockchain ecosystem coupled with the release of Ethereum 2.0 and several additional improvements.
Nicole Willing, an analyst with Capital.com, while recalling ETH’s days of Proof-Of-Work (PoW) – Proof-of-Stake (PoS) transitioning, says that the price of the coin is meant to fall by 25%, three months from the day “The Merge” started in 2023.
Data available on Cointelegraph stated that Ethereum’s exchange balance hit a downward trend of 2.6%, making it a 30-day drop. It was also explained that this situation tends to trigger a bullish trend since fewer coins will be up for sale.
Ethereum Brews Surprises In The Latest Price Analysis
Ethereum’s $1600 price level shows a noticeable rebound in the market’s daily trading chart. It was also gathered that its 200-day moving average provided a major help as of last week. The price of ETH also had a rally, which successfully exceeded the $1800 resistance and its 50-day moving average.
Cryptocurrency price experts said ETH is currently focused on exceeding the $2000 price mark, which is supposedly its psychological resistance level. This event will be followed by the crucial technical area of $2300. Data extracted from Trading View shows that Ethereum experienced $8.086 billion in trading volume, with a circulating supply of 120.194 million.
With a current market capitalization of $227.31 billion, Ethereum had a 10.13% increase in price as of last week, as against the 5.06% it had a month prior. Although down by −2.5% as of press time, the chart pattern indicates that the trend is still healthy.
Meanwhile, a research to through an AI-assisted price analysis by Capital.com’s Peter Henn has predicted that Ethereum could be worth $2,851.56 before the end of 2023 – and could hit $4,224.26 before the end of 2024.
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