Since failing to break above early November resistance in the $1,675 area late last week, Ether (ETH), the token that powers the Ethereum blockchain, has been in consolidation mode. It last moved sideways in the $1,600s as traders watch for macro factors ahead, including Thursday’s Q4 2022 US GDP growth numbers and December Core PCE inflation data. friday.
Both data readings could impact Fed tightening expectations this year, which could impact crypto – easing Fed tightening expectations due to evidence of slowing inflation and american growth raised crypto so far this year. Indeed, despite its recent consolidation, Ethereum is still trading up over 35% so far this year, meaning the world’s second-largest cryptocurrency by market capitalization is on track for its best monthly performance since July 2022.
What’s next for ETH?
Positive macro tailwinds, as well as optimism about Ethereum the upcoming update that will allow withdrawals may well support further upside. Indeed, progress towards the so-called “Shanghai” hard fork seems to be going smoothly – a lead Ethereum developer just announced on Twitter that the developers have created a new testnet to test the withdrawal of the ETH staked soon to be released feature.
Meanwhile, another possible tailwind could be if ETH supply conditions remain deflationary. According to data from ultrasound.silverETH’s annual inflation rate fell back into negative territory early last week for the first time since November.
A break above the $1,675 resistance zone could open the door for a quick rally towards the next major resistance zone around $1,790 and then towards the summer 2020 highs at $2,030.
Experts give their price predictions
According to the algorithm-powered crypto forecast website Investor PortfolioEthereum is expected to trade just above $700 a year from now, around 55% below current levels.
DigitalCoinPrice analysts are not so bearish. Their algorithm predicts that Ethereum will end in 2023 at around $3,450, an impressive increase of over 100% from current levels.
Meanwhile, according to a recent survey of 55 fintech experts conducted by Finder.com, Ethereum is expected to end 2025 at $5,150 per token, before finally hitting $11,700 in 2030. CEO and co-founder of Osom Finance , Anton Altement, explained that he is bullish on ETH because last year’s meltdown turned ETH into both a deflationary and yield-carrying asset.
He added that pessimism over Fed tightening is likely to ease in 2023, while worries about still-locked ETH staking will also soon be eased by the upcoming Shanghai hard fork upgrade expected at the start. end of this quarter.
Morpher CEO Martin Froehler also offered a bullish view. According to the survey, Foehler expects massive institutional demand for ETH in the coming years due to the positive characteristics of the cryptocurrency. These include ETH’s return of around 5% via staking, its eco-friendly post-merger nature from proof of work, the fact that it’s classified as a commodity, and the fact that ETH has a regulated futures contract on the CME to protect against price volatility.
Is it too late to buy Ethereum?
If the bullish predictions above are correct, it is certainly not too late. Yes, it would have been better to have recovered ETH in June 2022 when it bottomed out at $800 per token. But if you’re a long-term investor looking to hold Ethereum until it breaks above $10,000, it won’t matter much whether you buy at $800 or at current levels in the $1,600s. .
Ethereum is still down around 65% from its all-time highs reached in late 2021 in the $4,800s. So far in Ethereum’s history, buying it while it’s still 65% below recent highs has never been a profitable strategy, even though investors haven’t been able to reach the background.
If you’re looking for other high-potential crypto projects alongside ETH, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Discussion Team.
The list is updated weekly with new altcoins and ICO projects.
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