Will Ethereum Price Continue to Fall? Expert Analysis and Future Predictions - COINTURK NEWS
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Will Ethereum Price Continue to Fall? Expert Analysis and Future Predictions

12:55 am (68 days ago)
September 24, 2023

Ethereum (ETH), despite being significantly below its all-time high of $4,891 in November 2021 and experiencing a significant drop of 67.44%, continues to show signs of recovery with a 37% increase since the beginning of the year.

According to 21milyon.com data, the cryptocurrency experienced a 2.67% drop last week and is currently priced at $1,592. Additionally, the trading volume has decreased by 41.83% in the past 24 hours, reaching $2.93 billion.

Will Ethereum Price Continue to Fall?

Despite concerns about the decline, experts attribute Ethereum’s relatively low performance to the introduction of Proof-of-Stake (PoS) with The Merge. This transition brings about a remarkable 99% reduction in energy consumption and significant improvements, but it also leads to an increase in liquid stake transactions. Approximately 10% of the total Ethereum supply, equivalent to about 12 million ETH, is now locked in platforms like Lido Finance.

This change has also raised concerns about network centralization, which puts downward pressure on Ethereum’s performance. In a report released on Thursday, JPMorgan analysts expressed disappointment with the increase in network activity despite energy efficiency and deflationary mechanisms.

The bank noted a 12% decrease in daily transactions, a roughly 20% decrease in daily active addresses, and an almost 8% decrease in the total value locked (TVL) in decentralized finance (DeFi) on the blockchain.

On Saturday, prominent crypto analyst Ali Martinez highlighted the absence of significant buying activity among Ethereum whales. These influential investors, known for their large wallets, have the potential to significantly impact the market when engaging in significant buying or selling activities.

The Future of Ethereum

Despite the challenges, data shared by leading analytics firm Santiment shows a significant decrease in Ethereum gas fees. According to Santiment, Ethereum’s gas fees have reached their lowest levels since 2023 and are currently at $1.15 per transaction.

The statement from Santiment reads:

Historically, we have seen increased usage as ETH becomes more affordable. Increased utility can then lead to improvements in market value levels.

After briefly trading above $1,650, Ethereum encountered resistance at $1,670 and subsequently experienced a downward trend. To turn short-term bullish expectations into reality, Ethereum must maintain support above the $1,615 level and continue to rise towards the $1,850 to $1,900 range. On the other hand, a significant support level to watch is at $1,500.

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