Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has surged above $2,000 on Thursday, Nov. 16, 2023, after a series of positive news and developments. The ETH price has increased by 5.4% in the past 24 hours, reaching a high of $2,102.56, according to CoinMarketCap. The recent price action has pushed Ethereum’s market cap to over $237 billion, making it the largest smart contract platform in the crypto space.
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Current Price Analysis
Ethereum’s price rally can be attributed to several factors, including the successful launch of the “London” hard fork on Aug. 5, 2023, which introduced a new fee mechanism that burns a portion of the transaction fees, reducing the supply of ETH and increasing its scarcity. According to Etherchain.org, over 7,430 ETH worth $14 million were burned on Wednesday, Nov. 15, 2023, creating a deflationary pressure on the ETH price.
Back inside the triangle. Eyes on the breakout ????.
Another factor that boosted Ethereum’s price is the growing adoption and innovation of the Ethereum ecosystem, which hosts over 4,000 decentralized applications (dapps) and numerous decentralized finance (DeFi) protocols that offer various financial services such as lending, borrowing, trading, and staking. According to DeFi Pulse, the total value locked (TVL) in DeFi protocols has reached a new all-time high of $96.7 billion on Thursday, Nov. 16, 2023, with Ethereum dominating the market share with over 80% of the TVL.
Moreover, Ethereum has also benefited from the increasing institutional and retail demand for its native token, ether, as a store of value and a medium of exchange. According to a recent report by Finder, a panel of crypto market experts has predicted that Ethereum’s price will surpass $14,000 by 2030, based on its utility, scalability, and innovation. Additionally, BlackRock, the world’s largest asset manager with $9 trillion under management, has officially filed for an Ethereum spot exchange-traded fund (ETF) with Nasdaq on Wednesday, Nov. 15, 2023, signaling its bullish outlook on the Ethereum network.
Weekly Price Analysis
Looking at the weekly chart, Ethereum has been in a strong uptrend since the beginning of November, breaking above the resistance levels of $1,800, $1,900, and $2,000. The ETH price has also formed a bullish flag pattern, indicating a potential continuation of the upward momentum.
The relative strength index (RSI) is above 70, showing that the market is overbought, but not yet in the extreme territory. The moving average convergence divergence (MACD) is positive and rising, confirming the bullish trend. The next major resistance level for Ethereum is at $2,200, which is the 61.8% Fibonacci retracement level of the previous downtrend from the all-time high of $4,362.35 to the low of $1,711.20. If Ethereum can break above this level, it could target the next resistance at $2,500, which is the 78.6% Fibonacci retracement level. On the downside, the immediate support level for Ethereum is at $2,000, which is a psychological and round number. If Ethereum falls below this level, it could find support at $1,900, which is the 50% Fibonacci retracement level and the upper boundary of the bullish flag pattern.
Future Outlook
Ethereum’s future outlook is positive, as the network is undergoing a major upgrade to Ethereum 2.0, which aims to improve its scalability, security, and efficiency by transitioning from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) consensus mechanism.
Ethereum 2.0 will also introduce sharding, which will split the network into multiple parallel chains, increasing its throughput and reducing congestion and fees. According to the Ethereum Foundation, Ethereum 2.0 is expected to be fully launched by the end of 2023 or early 2024, after the completion of the “Merge” and the “Shard” phases. Ethereum 2.0 will make Ethereum more competitive and attractive to users, developers, and investors, as it will enable faster, cheaper, and greener transactions, as well as more innovation and interoperability in the Ethereum ecosystem.
News Roundup
Here are some of the latest news and developments related to Ethereum:
- Young Millionaire from Bitcoin and Ethereum Success Targets New Crypto for Future Investment: Youssof Altoukhi, a 20-year-old millionaire who made his fortune from investing in Bitcoin and Ethereum, has revealed his new venture in VC Spectra (SPCT), a crypto project that aims to create a decentralized venture capital ecosystem.
- Ethereum’s Failed Transactions Result in Major User Losses — What’s Going On?: Ethereum users have lost major money from failed transactions, as the network’s high fees and congestion have caused many transactions to be reverted or dropped. According to Kaiko, a crypto data provider, Ethereum’s failed transaction rate reached 25% in October, resulting in over $300 million in losses for users.
- Countdown to Ethereum Exposé: Insider Promises Proof of Vitalik Buterin’s Alleged Fraud in 48 Hours: Steven Nerayoff, a former Ethereum insider and advisor, has claimed that he will expose evidence of alleged fraud and misconduct by Ethereum co-founders Vitalik Buterin and Joe Lubin in 48 hours. Nerayoff has accused Buterin and Lubin of stealing intellectual property, manipulating the ETH supply, and deceiving investors and regulators.
Conclusion
Ethereum has shown a strong performance in the past week, rallying above $2,000 amid positive news and developments. The network’s successful launch of the “London” hard fork, the growing adoption and innovation of the Ethereum ecosystem, and the increasing institutional and retail demand for ether have boosted Ethereum’s price and market cap. Ethereum’s future outlook is also optimistic, as the network is undergoing a major upgrade to Ethereum 2.0, which will improve its scalability, security, and efficiency.
However, Ethereum also faces some challenges, such as the high fees and congestion, the failed transactions, and the potential legal risks. Therefore, Ethereum investors and users should be cautious and vigilant, as the market is volatile and unpredictable.
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