Ethereum network experiences increase in deposit and buys as the the wind of bull keeps blowing, with the hope of the coming good news amid the expected Ether spot ETFs approval and bitcoin halving. Investors are much hopeful and determined to stack up their bags as Ethereum price breaks through resistance for the first time after many days now.
Ethereum price dropped from $2690.76 highs on the 12/jan/2024, as it gathered up support at the price of $2196.86 as at 23,jan,2024. Consolidating around this price, Ether price breaks through resistance at $2317, led by the buying pressure, bull waves and the on chain activities.
The question is, will ethereum sustain this bullish momentum ? Is ether rally led by asset demands or controlled by on chain activities and some Ether staking protocols ? Well, from the recent research I made about this, I discovered that the most of activities ( transfer, execution and deposit ) carried out on ether chain are done by some staking solution protocols. Either depositing for staking, or transferring rewards earn from staked asset.
STAKING
Staking is done by locking up an asset in a particular protocol for a period of time while gaining from the hourly generated rewards according to the protocol rewards mechanism.
EFFECT
These activities largely affect ether price which to me I think it has affected the Ethereum network positively, securing ethereum network ( as ethereum now run a prove of stake consensus mechanisms ) and giving stakers opportunity to earn new tokens by delegating their asset.
So what are we saying ? If this price surge we see is caused by ether network on chain activities, and liquidity transport protocols, then there is a rising increase for ether token demands for staking, which I think it will certainly skyrocket Ether price to the moon as these demands increases. If you have been carefully observing, during crypto market fall in price, Ethereum usually gather heavy support that usually prevent it from falling drastically in price unlike every other crypto tokens. This is usually because of the heavy staking activities,( am not implying that other project doesn't stake their tokens, but ethereum chain is uniquely exceptional ) securing and preventing the price of the asset from dropping drastically.
ETHEREUM PRICE FORECASTS
Ethereum experience all time highs with the price of $4868.825 on 10,Nov,2021, during the last bull market.
Since 2021 till date, Ethereum network has experienced many more developments, upgrade and lots of decentralized projects founded on the network. Ether chain is ever to be considered, and this 2024 bull market might take ether price to $15,000 if not more.
WELL FROM THE CURRENT PRICE, WHAT ARE
WE EXPECTING NEXT ?
Well price is at $2,493 as I write. What traders and investors should be expecting is a build up around this price, then a quick and little pullback in price to takeout early buyers, before price continues to the upside.
TRADING TIPS
Accumulate more positions as you can, and investors should bag as many they can, because this could be the last time we might be seeing ether price at $2,490. Immediately after the bull market, Ethereum at $2,490 will be history.
Thanks guys for taking time to read. If you want to be the first to see my next analysis, check on this blog daily. Thank you!!
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