Crypto analyst Benjamin Cowen believes that Ethereum (ETH) needs to drop further before it can reach new all-time highs, as it must first align with its fair-value logarithmic regression trendline, creating an attractive accumulation range between $400 and $600.
Ether's price has been supported by the Federal Reserve's injection of $300 billion, but doubts are growing about its ability to sustain this level due to bearish sentiment in the cryptocurrency market and declining metrics on the Ethereum network, including a decrease in the number of ETH investors and a decline in activity on decentralized applications. Competitors such as Solana are also benefiting from stablecoin volumes, and there is an increased likelihood of Ether's price dropping below the $1,600 support level.
Bitcoin (BTC) has remained stagnant below $26,000, with investors waiting for further developments in the cryptocurrency market and the wider economy, while Ether (ETH) is expected to outperform BTC in September and October due to the potential approval of the first ether ETF in mid-October. Additionally, SOMA Finance plans to sell tokens that represent a financial interest, addressing the criticism that crypto tokens lack equity or debt claims. Binance continues to dominate the crypto market as the leading exchange.
The price of bitcoin briefly rose above $25,900 after the FASB approved favorable accounting treatment for companies holding crypto on their balance sheets and ARK Invest submitted paperwork for a spot ether ETF, but quickly returned to its previous level.
Ether's price has recovered 6% after hitting a critical support level, but questions remain about whether it can reach $1,850 due to challenges such as regulatory uncertainty, high network fees, and declining smart contract activity. Additionally, derivatives metrics indicate reduced interest from leveraged long positions, suggesting a bearish sentiment in the market.
After Ethereum's transition to proof of stake one year ago, notable developments have occurred, including a reduction in energy consumption, a substantial increase in staked Ethereum, concerns about centralization and censorship, advancements in scaling solutions, regulatory scrutiny on staking services, a decrease in overall token supply, and ongoing development of future upgrades.
Bitcoin (BTC) surpasses $27,000, while ether (ETH) holds support levels, but interest-rate decisions this week may bring downward pressure; overall market capitalization grows just 0.4% in the past 24 hours.
Ether (ETH) has experienced a modest increase in price in 2023, but it is still trading significantly below its peak in November 2021, raising questions among investors about the reasons behind the decline and potential catalysts for a reversal. The ongoing legal battle between Ripple and the SEC, as well as regulatory uncertainties surrounding the Ethereum ICO, remain sources of concern. However, positive surprises such as the request for a spot Ether ETF and Ethereum's position to benefit from Bitcoin-related catalysts give hope to investors.
Ether (ETH) has shifted from being deflationary to inflationary due to decreasing network activity on Ethereum, which could negatively impact the token's price, according to analysts. The decline in network fees and the adoption of layer 2 networks have contributed to the increase in ETH supply, reversing its previous deflationary trend. This has raised concerns among crypto observers who predict bearish developments for ETH, including a potential drop to as low as $1,000.
Ether (ETH) is showing positive prospects as a technical analysis indicator suggests a bullish signal, with a counter-trend buy signal indicating support at $1,580 will hold, despite other studies favoring a deeper price slide.
The Ethereum Merge, which transformed Ethereum from a proof-of-work asset to a proof-of-stake asset, has made staking an attractive option for holders as it allows them to generate returns and weather bear markets, with the recent State of Staking report showing total staking rewards for all cryptocurrencies at $5 billion on an annualized basis during Q2 2023. Additionally, the implementation of the Shapella upgrade has removed barriers to entry and enabled holders to withdraw their staking rewards, leading to a net inflow of over 7.5 million ETH into staking. Despite some challenges such as long queues and increased strain on the network, staking on Ethereum continues to grow in popularity and play a pivotal role in the network's future.
Bitcoin's price has increased by 60% since the beginning of the year, reaching $26,972, while Ethereum's price has risen by 40% and now trades at $1,672; the approval of VanEck's Ethereum Futures ETF likely contributed to the recent boost in Ethereum's price.
The supply dynamics of Ethereum have been affected by the drop in DeFi, NFT sales, and meme coin trading, with Ethereum being either deflationary or inflationary depending on the time frame. The implementation of EIP-1559 and the transition to proof of stake have also impacted Ethereum's supply and transaction fees, while gas prices have been declining due to scaling solutions and a lack of narrative in the crypto market.
The price of Ethereum's native token, Ether (ETH), has struggled to surpass $2,000 due to factors such as a bear cycle fractal, a stronger U.S. dollar, underperformance compared to Bitcoin, a decline in Ethereum network activity, and a drop in NFT volumes and unique active wallets.
Despite initial excitement about Ethereum's transition to proof of stake and the expectation of deflationary trends, the recent surge in global ETH supply has raised concerns about the network's inflationary nature and long-term financial health. While Ethereum core developers seem largely unconcerned, inflationary trends and the impact of low gas fees on burning ETH have sparked debate among users and investors.
The price of ether (ETH) is predicted to potentially reach $8,000 by the end of 2026 due to increased demand from gaming, tokenization, NFTs, and DeFi, according to a report from Standard Chartered Bank.
Improving efficiency and increased demand for Ethereum will lead to a potential rise in the price of ether to $8,000 by the end of 2026, according to Standard Chartered analyst Geoff Kendrick, with a long-term valuation of $26,000-$35,000. The forecast is based on expected improvements to the Ethereum blockchain, the growth of NFT transactions, the development of blockchain gaming, real-world asset tokenization, and positive regulatory developments.
Ethereum's network revenue generated from fees has significantly decreased, which challenges the deflationary supply narrative of its native token ether (ETH) and puts its "ultra sound money" thesis to the test, according to crypto data analytics firm IntoTheBlock. The reduction in fees is a result of lower demand for NFTs and DeFi, as well as the increased adoption of layer 2 scaling solutions, but it also keeps ETH's supply inflationary by burning fewer tokens than new issuance.
