Ethereum is one of the top altcoins in the crypto sphere that has dominated the market since its inception. Its expanding use cases and potential to host applications ranging from decentralized applications (dApps), decentralized finance (DeFi), non-fungible tokens (NFTs), and Metaverse projects has positioned it as one of the best long-term investment options for investors.
However, the volatility of the market hasn't been easy on even Ethereum. After a massive decline, ETH has slowly started signs of growth. As the crypto market is on its recovery path now, investors are curious to know where the next target is headed. Let's see.
Is ETH Rising Again?
Ethereum went on a massive bull run in 2021, reaching an all-time high of $4,891.70. Later, following the bearish market, the crypto has been in a downtrend. 2023 came by giving new hopes of another price spike for investors, as its price was trading in the green zone in January after the huge crypto market crash of 2022.
ETH has marked a 4.5% spike within 24 hours as the cryptocurrency market recovers from its weekend selloff. It is now trading at $1,645.33, which is over 39.5% since the start of 2023. The crypto is poised for massive growth in the future, given its upcoming Shanghai upgrade, deflationary nature post-merge, and increasing adoption rate.
ETH Pumps Up 4.5% in 24 Hours – Where is the Next ETH Target?
A technical analysis shows that the crypto is slowly painting a bullish pattern as of now. The relative strength index marked in purple in the chart shows a significant leap to 60, having been at an oversold 30 a few days ago. The coin's 30-day moving average, in red, has started rising above its 200-day in blue, exposing the emergence of a new bullish trend in the future.
However, given the volatile nature of the crypto sphere, it is not clear how long such a trend might last. But if ETH price is capable of breaking the $1,700 resistance level, the bullish trend can continue for a longer period.
Considering Ethereum’s plans for 2023 and beyond, there’s a good chance of breaking past the resistance level soon. If the price reaches near the resistance level, a catalyst event like the Shanghai upgrade, followed by increasing adoption, can skyrocket its price to the next target shortly.
The crypto analyst expects that once ETH passes $17,00, it could hit the next peak of $2,000 by the second half of the year before potentially rising to $2,500 by the start of 2024.
Key Catalysts For ETH’s Price Rise
ETH is a good buy in 2023, as there are numerous price drivers for the crypto this year. To begin with, the first factor is the deflationary nature of the crypto since last September’s monumental Merge upgrade. Experts say that it now has a tendency to become deflationary during peak periods of traffic, where it often burns more tokens than it generates. This strengthens the bull case for ETH due to the increased adoption rate.
I know everyone is euphoric from Bitcoin pumping but don’t forget that Ethereum is deflationary and burning tokens like we’re at a bonfire.— wab.eth (@wabdoteth) March 13, 2023
There simply will not be enough coins for everyone. pic.twitter.com/2uD1eJNMoI
Next is the much-awaited Shanghai upgrade, which would provide the much-needed technical underpinnings for future Ethereum upgrades, including sharding, which will provide massive scalability improvements. The ability to withdraw staked ETH will finally be an added advantage for the crypto as it de-risks staking for users, ensuring that their funds are withdrawn seamlessly.
This is already bullish enough for ETH to reach its target, yet there are several other reasons to be optimistic about the crypto's prospects.
Coinbase has recently announced the launch of its layer-two sidechain for Ethereum. The platform aims to use Base, the sidechain, to onboard 1B+ users into the crypto economy. This suggests that almost all big institutions will adopt ETH if the team opts for a public permissionless blockchain. This will lead to more adoption rate and amplify the deflationary effect, boosting the crypto's demand and value. It’s also worth pointing out an announcement by Visa that it is testing USDC stablecoin payments on the Ethereum blockchain.
1/ 🔵 We’re excited to announce @BuildOnBase.— Coinbase (@coinbase) February 23, 2023
Base is an Ethereum L2 that offers a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps.
Our goal with Base is to make onchain the next online and onboard 1B+ users into the cryptoeconomy. pic.twitter.com/RmwZFJzGGs
All these factors would drive ETH to rise steadily over the course of the year, making it strong enough to withstand any upcoming uncertainties or price plunges. This makes Ethereum the best buy-and-hold opportunity for generating future profits.
Is Now A Good Time To Buy Ethereum?
Considering everything going on in the Ethereum ecosystem and the updates in the pipeline, ETH certainly poses a good buy now for profitable returns. Now with Merge, the network is highly sustainable and has rock-solid fundamentals. However, a massive rally is only possible with the completion of Shanghai, which is due in April.
Additionally, a growing number of DeFi, NFT, and Metaverse projects are being built on Ethereum. With further developments to its network, this would only increase, leading to a significant rise in its price and value. As a result, there has been rising interest from large investors and institutions, bolstering ETH’s social sentiment and solidifying its place as the powerhouse of the crypto market.
Currently, several giant investors or whales have started piling up ETH coins, which is a positive sign that the demand for the crypto is increasing. Since the whales have long-term goals, an increase in accumulation would significantly fuel the bullish rally of Ethereum.
Crypto experts and investors believe that Ethereum is ready to lead the bull run in 2023. Especially now, as the crypto market is slowly recovering from its lows, the next target for ETH is not so far, making it the best crypto to buy now.