- Ethereum price has all the indicators showing the bulls are in control fueled by the high demand from institutional investors and the rise of EVM-compatible blockchains.
- With Bitcoin price struggling to rally beyond $44.5k, crypto cash flow has accelerated to Ether following a successful macro breakout and retest.
Ethereum (ETH), the undisputed king of smart contracts securing billions of dollars, is gradually awakening from a two-year crypto bear market. With investors’ confidence significantly higher during the 2023 fourth quarter compared to the same time last year, the Total Value Locked (TVL) in the Ethereum-based DeFi protocols is on the cusp of going parabolic.
Moreover, the ongoing altcoin rise relies on the Ethereum coins for liquidity to a greater extent. Additionally, the number of staked Ether has continued to grow to about 28.6 million from over 895k validators since the Sharpella upgrade earlier this year.
The Ethereum network is well bolstered by the growing layer two (L2) solutions like Optimism (OP), Arbitrum (ARB), and Polygon (MATIC), among others. As a result, the Ethereum ecosystem can comfortably handle the increasing demand without experiencing network congestion. Additionally, the Ethereum network has been operating under the base fee since the EIP-1559, which also introduced the auto-burning mechanism, whereby more than 3.8 million ETH have been obliterated.
Nonetheless, the Ethereum network has been facing notable competition from upcoming layer one blockchains like Solana (SOL), BNB Smart Chain (BSC), and Cardano (ADA). However, the spot Ethereum exchange-traded fund (ETF) application in the United States indicates the rising demand for the second-largest crypto asset.
Closer Look at Ethereum Price Analysis
According to a popular anonymous crypto analyst on the X platform dubbed Inmortal, Ethereum price is on the verge of printing consecutive major bull candles, alias god candle. Notably, the crypto analyst has set the first ETH price target at around $3,500 before the mother altcoin proceeds towards its all-time high (ATH).
The crypto analyst reminded traders who have been migrating to SOL and other coins due to their meteoric rise that Ethereum is not dead. Moreover, Ethereum is closely following Bitcoin price action, which is about 150 percent away from its all-time high.
Ethereum god candle will catch many people off guard.
“ETH is dead”
“ETH is broken”Do you think this market gives a s**t about that?
Human greed has no limits.$ETH— Inmortal (@inmortalcrypto) December 22, 2023
From a technical standpoint, ETH/USD on the weekly time frame has seen the Relative Strength Index (RSI) rally towards the 70 level for the first time in two years. Bolstered by a daily golden cross between the 50 and 200 Moving Average (MA), the ETH price is undeniably on the cusp of a major uproar. Furthermore, the altcoin has successfully retested the breakout of an ascending triangle following the recent spike towards $2,400.
Market Outlook
Ethereum price has gained more than 10% since the end of the Christmas break to trade at $2,400.
The Ethereum market outlook has continued to broaden with the notable clear crypto regulatory environment worldwide. With a market cap of about $287 billion, Ether’s price only needs to triple to reach that of Bitcoin around $838 billion.
