Saturday, May 25, 2024

Ethereum Price Prediction as ETH Rallies 6% in 7 Days – How High Can ETH Go in 2023?

Ahead of what is regarded as one of the most significant Fed policy statements in years, Ethereum (ETH), the cryptocurrency that runs the smart contract-enabled Ethereum blockchain and the second-most valued cryptocurrency globally by market capitalization, is consolidating.

The most recent price of ether was little over $1,800. It has recovered quite well from Tuesday’s weekly lows in the $1,720s.

The last seven days have seen a 6% increase in the value of the cryptocurrency.


How High Can Ether (ETH) Go in 2023?

Ether’s outlook for 2023 may be significantly impacted by the apparent major shift in the macro narratives guiding traditional asset classes and cryptocurrencies brought about by the problems in the US (and worldwide) banking sectors.

First off, a dovish turn from the Fed currently appears imminent if current money market pricing is accurate.

Thus, rather than pointing to tighter financial conditions for the duration of 2023, the expectation is biased towards substantially easier ones, which has historically been good for cryptocurrencies like ETH.

Safe-haven flows appear to be helping cryptocurrency, lead by Bitcoin, as investors are beginning to consider blue-chip cryptos as a competitive alternative to the established, fiat-based financial system.

Ether will probably profit rather than suffer if the contagion in the US financial industry spreads further.

Long-term bullish technical indicators for ETH/USD include the pair’s strong recent rally from its 200-Day Moving Average and recent golden cross, in which ETH’s 50DMA crossed above its 200DMA in early February.

In the upcoming weeks and months, it’s possible that the pair will keep moving higher, with a push into the upper/mid $2,000s per token.

ETH Supply Deflation Could Make Up for Weak On-chain Activity

The kind of pickup that has historically been required for an ETH bull market to truly take off is still missing from Ethereum blockchain activity, according to on-chain data provided by The Block.

Bear market ranges are still being experienced by the daily active and new address counts as well as the daily transfer count.

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