Ethereum Price Prediction as Bulls Hold ETH Above $1,500 – Here’s Where ETH is Heading Next
The Ethereum price is unchanged in the past 24 hours, with its move to $1,567 over the weekend meaning that it has fallen by 4% in a week and by 6% in the last 30 days. However, it remains up by 31% since the start of 2023, with its $1,550 support level holding strong in the past few days, suggesting that it won’t be returning to the lows of last year.
And with Ethereum having some of the strongest fundamentals in the market, there’s little doubt that ETH will continue rising again once the market returns to growth. Of course, the upcoming Shanghai upgrade, which enables staking withdrawals, may cause a temporary slide, but recent positive Ethereum-related news (e.g. from Coinbase and Visa) suggests that ETH is only going up in the longer term.
Ethereum Price Prediction as Bulls Hold ETH Above $1,500 – Here’s Where ETH is Heading Next
ETH’s chart suggests that it still has further falls in store before it can resume rallying. Its 30-day moving average (red), for example, had flattened over the past week or so and now looks like it’s beginning to fall back toward its 200-day average (blue), signaling additional losses.
Similarly, ETH’s relative strength index (purple) has now fallen below 50 and could be on its way lower. It won’t have bottomed until it reaches somewhere around 30 or 20.
However, as noted above, the coin has done a good job of holding to its $1,550 support level, which it hasn’t breached since early February. And even then, it quickly recovered back up to $1,600 in a matter of days.
So even if ETH is likely to fall further in the next few days, there’s confidence that it will recover soon enough. That said, the market needs to hope that the (potentially) incoming bankruptcy of Silvergate Bank doesn’t bring down other crypto-related firms in its wake, something which could cause selloffs to continue in the medium term.
Silvergate's death spiral is going to be rough for crypto.
— Adam Cochran (adamscochran.eth) (@adamscochran) March 1, 2023
I don't think retail investors realize how much market maker money moved around quickly via SEN, and how many crypto exchanges were/are banking with them.
Stock almost down to its ATL after hours.
While most exchanges have now cut ties with the apparently failing Silvergate Bank, if the latter’s failure does cause a cascade of similar collapses, then ETH may struggle to keep its support level. That said, if it’s just Silvergate that’s affected, it seems that the market selloff over the weekend has already priced in its bankruptcy, so it may not cause further pain once it actually files for bankruptcy protection.
And once the fallout from Silvergate’s demise comes to an end, ETH remains better placed than most other cryptocurrencies to continue its recovery. This is for various reasons, but the underlying factor is that it’s the dominant layer-one network by a wide margin, and that its recent upgrades have put it on track to cement this position in the coming months and years.
And it continues to enjoy positive news. Most recently, Coinbase announced that it’s launching its own layer-two sidechain for Ethereum, dubbed Base.
1/ 🔵 We’re excited to announce @BuildOnBase.
— Coinbase 🛡️📞 (@coinbase) February 23, 2023
Base is an Ethereum L2 that offers a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps.
Our goal with Base is to make onchain the next online and onboard 1B+ users into the cryptoeconomy. pic.twitter.com/RmwZFJzGGs
What’s big about the launch of Base is that Coinbase is aiming to use it to “onboard 1B+ users into the cryptoeconomy.” This means it’s aiming to onboard an extra billion users into the Ethereum ecosystem.
By extension, it also means rising demand for ETH, with all layer-two transactions ultimately settled using the Ethereum blockchain and its native token. So combined with updates (e.g. EIP 1559) that have reduced Ethereum’s net minting of new tokens, demand for ETH relative to supply could grow considerably.
Other positive news for Ethereum includes last month’s news that payments giant Visa is testing USDC stablecoin payments on the Ethereum blockchain. So not only is Coinbase entering the Ethereum ecosystem, but so too is one of the largest payment firms in the world.
Visa has been testing how to do large settlements using $usdc on #ethereum. #crypto is going to be an everyday part of everyone's lives soon. Get ready.
— Lark Davis (@TheCryptoLark) February 6, 2023
Ethereum is also preparing to release the Shanghai update, which enables stakers to withdraw the ETH they’ve locked and received as rewards. While some commentators argue this will cause a short-term selloff, it’s another positive landmark for Ethereum, since it effectively de-risks staking for users.
With all this in mind, ETH is likely to return to $1,700 once the Silvergate-related drama has ended. And by the end of the year, it could easily have passed $2,000 and be on its way to serious recovery.
