Ethereum Price Prediction

ETH’s chart is now in a delicate situation. Early in the month, its 30-day moving average (red) started to rise beyond its 200-day moving average (blue), and it may continue to rise for a few more days or weeks, indicating greater increases.

On the other hand, the position of ETH’s 30-day average may represent the pinnacle of its recent climb considering that the global economy and markets haven’t fully recovered since the slump in 2022. The coin’s relative strength index (purple), which has fallen to below 60 after peaking above 85 in the middle of January, supports this anxiety.

$1,700 is the crucial resistance level to be on the lookout for. ETH tried to reach this limit at the beginning of February but dropped back to about $1,620 in the days that followed. If it can reach this ceiling and hold it, it will almost surely continue to rise.

As was already mentioned, there are numerous fundamental reasons to be hopeful about Ethereum. The payment giant Visa most recently disclosed yesterday that it is testing USDC stablecoin payments on the Ethereum network.

This is quite positive for Ethereum and suggests that its network will be used extensively going forward in the months and years. Visa has actually strengthened the layer-one network before; in fact, the company released research in mid-January stating that the Merge “laid the path for Ethereum to become a more scalable platform in the future.”

It seems believable to say that Ethereum will only solidify its dominant position in the future years with the support of companies like Visa. Indeed, according to analysts, ETH itself will be among the biggest winners this year. In a tweet from December, Bloomberg’s Mike McGlone predicted that ETH will likely exceed BTC.

The Merge last September set Ethereum on the path to increasing its scalability and efficiency, and now that it has switched to proof-of-stake (among other changes), it is more prone to deflation. In times of heavy network activity, the Velvet Capital network burns more ETH than it issues, as shown in the tweet below.

With 59.4% of the whole DeFi market, Ethereum already has the largest layer-one blockchain in terms of total value locked in. Given that the Merge provides the groundwork for sharding and additional scalability advantages in addition to Ethereum’s significant network effects, this will only get worse in the future.

As a result, there is a good likelihood that ETH will break over several significant levels this year, starting with the previously indicated $1,700 resistive level and continuing on to $2,000 and beyond. A return to more upbeat market circumstances might see ETH rise to $3,000 and beyond, while there is no assurance that 2023 would see a full-blown bull market (rather than a moderate recovery).

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