Ethereum Price Prediction When ETH Hits $200 Billion Market Cap – Time To Buy?
Ethereum price has risen by 2% in the last 24 hours, reaching $1,657 as the cryptocurrency market increases by the same percentage. The current price means that it has been static for the past week and has increased by 6% over the past 14 days, with the coin recovering its market cap of $200 billion today.
While ETH has returned 38.6% since the beginning of 2023, it remains a significantly undervalued token. And with Coinbase recently announcing a layer-two sidechain for Ethereum, it could actually see some very big gains later in the year.
Ethereum Price Prediction When ETH Hits $200 Billion Market Cap – Time To Buy?
ETH’s indicators are in a mixed position, with the coin equally capable of further gains or losses in the near future. For example, its relative strength index (purple) has started to rise again after dropping to 50 in the last couple of days, signaling a pick-up in momentum.
On the other hand, ETH’s 30-day moving average (red) has flattened relative to its 200-day moving average (blue). And given how much higher it is than the longer average, ETH could soon be due for further declines.
That said, any falls could be small, as ETH has done a good job of holding the $1,600 support level. So, while it may see another decline in the near term, this is likely to be short-lived, with ETH’s mid- to long-term picture pointing towards growth.
In fact, ETH’s fundamentals remain so strong that they can only rise in the longer term. This has been underlined once again by a recent announcement from Coinbase, which revealed that it is launching Base, a layer-two sidechain for Ethereum.
What’s important about this launch is that Coinbase aims to “onboard 1B+ users into the crypto economy” with Base. Even if it succeeds in attracting only a fraction of such users, its new venture will result in more support and use for Ethereum.
This means a steadily rising price for ETH, but so does Ethereum’s newfound status as a proof-of-stake blockchain. When it completed its merger in September, its move to a PoS mechanism laid the groundwork for it to become more energy efficient, more scalable, and cheaper, which will only help it solidify its position as the dominant layer-one blockchain in the cryptocurrency ecosystem.
Even now, Ethereum currently accounts for 59% of the total value locked up in the entire sector. As additional updates come in, and especially when sharding arrives later this year or in 2024, this percentage is only going to increase.
That Ethereum is in a very strong position was also highlighted a couple of weeks ago, when payment giant Visa revealed that they are testing USDC stablecoin payments on the Ethereum blockchain. Again, this suggests that if large enterprises are going to use a public blockchain, they will most likely use Ethereum.
On top of this, Ethereum is also preparing to release the Shanghai Update, which will allow stakers to withdraw the ETH they have locked and received as rewards. While some commentators suggest this could lead to a short-term sell-offit’s another bullish milestone for Ethereum since it reduces the risk of effort for the users.
Even with a Shanghai-induced decline this month, ETH is set to recover and return to the $1,700 level in the coming weeks, before rallying further. And the long-term trend is towards $2000 and higher for later in the year, with previous updates (eg EIP 1559) giving ETH a tendency to become deflationary during periods of high activity.
And with the likes of Coinbase now joining the Ethereum ecosystem, such “peak activity” is likely to become a regular occurrence, making ETH one of the best bets in crypto.
Buy Ethereum now
Is now a good time to buy Ethereum?
ETH is one of the most fundamentally attractive coins on the market, but it could fall when Shanghai makes withdrawals possible. For this reason, short-term traders may prefer to look at other coins with high potential. Accordingly, we have compiled a list of the top 15 cryptocurrencies for 2023, analyzed by CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects, so remember to check back for new entries.
Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
