Ethereum Price Prediction as Meme Coin Mania Pushes Gas Fees to 12 Month High – Is ETH Adoption on the Rise?
Ether (ETH), the cryptocurrency that powers the smart-contract-enabled Ethereum blockchain, was last up a little over 1.0% on Wednesday in the $1,870 area.
The cryptocurrency derived a small intra-day boost from US Consumer Price Index inflation data that came in broadly in line with expectations at still-hot levels, but at the same time boosted expectations that the Fed’s tightening cycle has already concluded.
But Ether remains well within this week’s sub-$1,900 ranges and is still down around 7.5% versus last weeks highs above $2,000.
Indeed, ETH investors remain on edge about the impact of the recent explosion of meme coin mania, particularly with regards to new wave meme coins like Pepe (PEPE), on the blockchain.
Transaction fees have been spiking in recent days as higher demand for meme coin transfers on the Ethereum blockchain fills up available block space.
As per Etherscan, the average transaction fee was last around $18, having recently risen above $27, its highest level in around one year.
Is ETH Adoption on the Rise?
Some say high fees represent high demand for the blockchain, meaning that Ethereum adoption is on the rise.
And, given fees are paid in ETH, higher fees equal higher demand for ETH amongst blockchain users.
But High transaction fees highlight the scalability issues faced by the Ethereum blockchain that critics say hinder its path to mainstream adoption.
But the Ethereum Foundation, who are responsible for maintaining and developing the blockchain, wants to implement upgrades such as “danksharding” in order to lift transaction capacity and lower fees in the coming years.
Price Prediction – Where Next for Ether (ETH)?
As ETH/USD consolidates within recent $1,800-$2,000 ranges, investors are asking what’s next.
Short-term positive technical momentum appears to have run out of steam, with ETH currently below its 21 and 50-Day Moving Averages (DMAs).
Some technicians think a dip to resistance-turned-support in the $1,700 area is a near-term possibility.
But longer-term technicals are still looking good. ETH remains well within its 2023 uptrend and would need to drop under $1,600 for this to be under threat.
With macro conditions expected to ease in 2023, more ETH tokens expected to move into the staking contract, the Ether supply’s deflation rate accelerating and in wake of the recent success of the Shapella upgrade, ETH should continue gradually marching higher in 2023.
Glassnode said in a recent report that, since the Shapella upgrade enabled staked ETH withdrawals, “the mechanics… for both incoming and exiting validators have played out as intended, with Ethereum’s consensus mechanism remaining stable throughout the process”.
“This is likely to de-risk longstanding engineering challenges, with net positive effects for both the security of the network, and the economy built upon it”.
