The Ethereum price has risen 2% in the last 24 hours, reaching $1,657, while the cryptocurrency market gains the same percentage. Its current price means that it is static over the past week and has risen 6% in the last 14 days, with the coin almost regaining its $200 billion market cap today.
While ETH has provided a 38.6% return since early 2023, it remains a significantly undervalued token. And with Coinbase recently announcing a layer two sidechain for Ethereum, it could see some very big gains later in the year.
Ethereum Price Prediction as ETH Hits $200 Billion Market Cap: Is It Time to Buy?
ETH indicators are in a mixed position, with the coin equally capable of further gains or losses in the near future. For example, its Relative Strength Index (purple) has started to rise again after plunging to 50 in recent days, signaling a recovery in momentum.
On the other hand, ETH's 30-day moving average (red) has flattened out relative to its 200-day moving average (blue). And since it is much higher than the longest average, ETH could see more declines soon.
That being said, any dips may be minor as ETH has done a good job holding its $1,600 support level. So while you may see another dip in the short term, it is likely to be short-lived as the medium to long-term picture of ETH points to growth.
In fact, ETH's fundamentals remain so strong that they can only increase in the long term. This has been underlined yet again by a recent announcement from Coinbase, which revealed that it is launching Base, a layer two sidechain for Ethereum.
What is significant about this release is that Coinbase Aims to "bring 1B+ users into the crypto economy" with Base. Even if you manage to attract only a fraction of such users, your new venture will result in increased adoption and usage of Ethereum.
This implies a constantly rising price for ETH, but so does Ethereum's new status as a proof-of-stake blockchain. When it completed the merger in September, its move to a PoS mechanism laid the foundation for it to be more energy efficient, more scalable, and cheaper, something that will only help it cement its position as the dominant layer-one blockchain in the ecosystem. of cryptocurrencies.
Even now, Ethereum currently accounts for 59% of the total value locked of the entire sector. As more updates arrive, and especially when sharding arrives later this year or in 2024this percentage is only going to increase.
The fact that Ethereum is in a very strong position was also highlighted a couple of weeks ago, when payment giant Visa revealed that it is testing USDC stablecoin payments on the Ethereum blockchain. Again, this suggests that if large companies are going to use a public blockchain, they will most likely use Ethereum.
In addition to this, Ethereum is also preparing to launch the Shanghai update, which allows stakeholders to withdraw the ETH they have locked up and received as a reward. While some commentators suggest this could cause a short-term sell-offis another bullish milestone for Ethereum, as eliminates the risks of betting for users.
Even with a Shanghai-induced drop this month, ETH will rally back to the $1,700 level in the coming weeks before accumulating more gains. And the long-term trend is towards $2,000 and higher by later in the year, with earlier updates (eg EIP 1559) giving ETH a tendency to turn deflationary during periods of peak activity.
And with Coinbase now joining the Ethereum ecosystem, such โpeak activityโ is likely to become a regular thing, which could say that ETH is one of the best bets in crypto.
Is now a good time to buy Ethereum?
ETH is one of the most fundamentally attractive coins on the market, but it may fall when Shanghai makes withdrawals possible. For this reason, short-term traders may prefer to look at other high-potential coins. Accordingly, we have put together a list of the top 15 cryptocurrencies for 2023, as analyzed by the cryptonews Industry conversation team.
The list is updated weekly with new altcoins and ICO projects, so be sure to check back for new entries.
Disclaimer: The Industry Talk section presents information from crypto industry players and is not part of the editorial content of Cryptonews.com.
