Ethereum (ETH), the largest altcoin by market value, is currently trading at $2,300. Investors are hopeful that the long-anticipated rise will begin this year. Both ETF decisions and the transition to Proof of Stake (PoS) with its negative inflation could trigger the expected rally for the altcoin king.
Ethereum (ETH)
Despite having many competitors and seeing new ones emerge frequently, Ethereum remains the largest blockchain in terms of total locked value. Moreover, all popular applications operate on the Ethereum network, and it doesn’t need to exert extra effort to attract users like the so-called Ethereum killers do.
Data from Santiment highlights the intensity of activity on the network. Daily, 484,000 unique addresses interact with the network, and this number is increasing. Compared to the previous 90 days, activity on the network has increased by approximately 30 percent, indirectly supporting the price.
“For the first time since its decline began on January 22, Ethereum has returned to a value of $2,345. The network is encouragingly rising in active addresses and network growth. The increasing utility is the primary support to justify the rising ETH market value.”
Spot ETH ETF
Following the approval of the BTC ETF, all eyes were on the ETH decisions. If there hadn’t been a general sell-off in the news, ETH could have initiated a move towards $3,000 or even $3,500 from above $2,700. However, panic selling, negative inflation, and the potential ETF approval story are currently not of much concern.
Standard Chartered Bank wrote in a report published on January 30th;
“As we approach the expected approval date of May 23, we expect ETH prices to follow or outperform Bitcoin during the comparable period.”
Elja, on the other hand, argues that the current price is cheap and suggests that a figure of $10,000 could be realized. Technically, ETH is in a strong support area and with closures above $2,306 this month, we could see new peaks between $2,500 and $2,700.
In the opposite scenario, closures below $2,190 could lead to a drop in price to as low as $2,039.
