Experts say Ethereum (ETH) can double its market value in the next few months ahead. This doubling is a result of the combined effort of supportive technical and basic indicators.
Although the financial market crashed recently, October started well for Crypto as currencies are experiencing bounce backs. Ether’s price, for instance, went up by close to ten per cent, hitting the $3300 mark for the first time in a while.
1. Crypto connections against US’s rising inflation
The beginning of October marks the Boom of the crypto markets simultaneous to the US CD announcement on consumer expenditure. Data from the report shows that the inflation of the US dollar has risen to levels never seen before.
Cryptocurrencies are Hedges against inflation; therefore, it isn’t shocking to see the high consumption of Crypto experienced.
Inflation pressure might lead to investors converting their balance sheets to Cryptocurrency.
2. Supply and Demand
The ETH London hard fork is an update that changes the blockchain transaction fee models and difficulty time bomb. Instead of bidding with gas prices, the network will set transaction fees with base fees for every block.
With this hard fork update, users expect a bullish market due to the Supply and Demand law. The new update introduces two new Ethereum Improvement Proposals. EIP-1559, for example, saw the burning of the blockchain network’s base fees. So far, this activation has removed close to 500 thousand Ether out of active supply.
In addition, the Ethereum blockchain is on the road to swapping its Proof-of-work consensus mechanism with the Proof-of-Stake.
Proof-of-Stake is a more advanced consensus mechanism compared to Proof-of-Work. Introduced in 2011, PoS depends on validators, unlike PoW that is dependent on miners.
The PoS mechanism aims to improve the speed of transactions, scalability and low energy consumption.
The network developed a staking pool that users can earn rewards from and grow their holdings. This pool will result in enticement users. The rewards and growth occur when users lock their Ether tokens into the Proof-of-Stake smart contracts for a given period.
As a result, many users will get drawn to the network. Although the blockchain dropped to low prices recently, reserves depict that users prefer holding on to their tokens. Demand will therefore rise, and numbers will go up.
3. ETH Cup and Handle
The cup and handle pattern is a continuation pattern. The Ethereum trends have depicted the cup and handle pattern over some time.
The resistance level of Ethereum is close to $4000, and if it breaks through these lines, the Crypto will double its market price.
What is Ethereum (ETH)?
Ethereum is a community-run blockchain platform that uses ETHER (ETH) and a programming language called solidity.
After Bitcoin, Ethereum is the highest Crypto in terms of market capitalization. Currently, the blockchain has a market capitalization of more than 384 billion USD.
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