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Ethereum Price Prediction as $10 Billion Trading Volume Floods In – Has ETH Bottomed Out Already?

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Source: TradingView

The Ethereum price has gained by 9% in the past 24 hours, rising to $1,689 as part of a marketwide rally caused in part by a short squeeze. Its current level means it has risen by 2% in a week and by 7% in a month, with today’s return largely compensating for losses witnessed last week.

With the token seeing a 24-hour trading volume of over $10 billion (in fact, over $13 billion at last count), there’s plenty of liquidity for further movements in the coming hours and days. And with ETH remaining one of the strongest cryptocurrencies in terms of fundamentals, today’s rally could be the start of sustained year-long gains.

Ethereum Price Prediction as $10 Billion Trading Volume Floods In – Has ETH Bottomed Out Already?

ETH’s indicators suggest that the coin has indeed bottomed out and that it’s in the middle of a strong rally that has enough momentum to continue. In particular, its relative strength index (purple) has risen to 60, which shows rising buying pressure, but also the fact that the token isn’t overbought yet.

Source: TradingView

A key resistance level to watch here is $1,700. Last breached convincingly in August, passing this level could signal a sustained breakout for ETH, which remains grossly undervalued.

Promisingly, ETH’s 24-hour volume has risen from as low as $5 billion over the weekend to more than $13 billion, as of writing. This is the kind of volume it hasn’t witnessed since early January, when it leapfrogged from $1,400 to $1,550 in a day or so.

As such, there’s enough liquidity and positive volatility in the market right now to feed further gains in the coming hours and days. And as we’ve noted time and again, ETH’s fundamentals mean that it’s one of the best-positioned tokens to ride a marketwide rally.

For instance, last week saw the news that payment giant Visa is testing USDC stablecoin payments on the Ethereum blockchain. This is highly bullish for Ethereum, with Visa’s involvement in the platform likely to help it grow even further, strengthening its dominant position.

Some experts have even gone so far as to predict that ETH will outperform Bitcoin this year, with Bloomberg’s Mike McGlone being one of the loudest voices.

Other analysts are also predicting that ETH will move in the short-to-medium term to somewhere around $2,000. From there, there’s no telling how far it could rise, particularly if inflation continues to ease and whales continue to accumulate more.

On a fundamental level, there are numerous reasons to suspect sustained rises this zear. Most notably, the Merge and other recent upgrades (e.g. EIP 1559) has given ETH a tendency to become deflationary during periods of peak activity.

At the same time, ETH’s newfound deflationary tendencies have occurred with big investors taking the token out of exchanges. In fact, data compiled by Santiment suggests that the value of ETH sitting on exchanges has fallen by 37% since the Merge (in September), with the total amount of ETH falling by 30% over the same period.

Given that the Merge puts Ethereum on the path towards greater scalability, we can only expect it to bolster its position as the biggest layer-one network by total value locked in. It currently accounts for 60% of the TVL of the entire cryptocurrency ecosystem, and this is likely to increase over time.

In paralle, ETH’s price will also increase, potentially troubling its current all-time high of $4,878 as the market reach 2024.

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High-Potential Alternatives to Ethereum

Along with ETH, there are a number of other high-potential altcoins in the market right now. Accordingly, we’ve listed them in a rundown of the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk 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 features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.