Where is ETH going after a new maximum?
|Slavomír Kaňuk|source|8730x
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Where is ETH going after a new maximum?

Looking at the cryptocurrency market more broadly, we can undoubtedly say that the mood is positive. This was also reflected in the prices of the two largest - Bitcoin (BTC) and Ether (ETH), which managed to create an all-time-highs. The opinion of analysts is that both mentioned cryptocurrencies can also look at other unexplored price levels by the end of the year.


 

Today we take a closer look at the native cryptocurrency of the Ethereum network, which is also the home network of the Dollero token (DLLR). Ethereum is the most used blockchain globally, and it seems that the interest in ETH is growing from retail and institutional investors. In addition, Ether managed to overcome its ATH just a few hours ago and reached a price of $ 4,460. The previous $ 4,400 ATH was broke in record time, suggesting that the bulls probably haven't said their last word yet.

 

We have seen an upward trend at ETH practically since the level of $ 3,000, and the technical side of the project strongly supports this growth. The news presented by Ethereum mainly presses to reduce the supply of ETH on the market. EIP-1559 update takes care of burning part of the transaction fees for each transaction on the network. The effects of this deflationary element can also be seen in the charts, and since its launch, up to 669,000 ETH has been burned, totalling approximately $ 2.8 billion.

 

Another factor that also pushes the ETH offer down is ETH 2.0 staking. It is part of long-term plans - the transition to a new operating system of the network - Proof-of-Stake (PoS). The total value of funds locked in staking already attacks the limit of 7% of the total ETH capitalization, representing extreme supply pressure.


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Finally, we need to put these metrics into one equation with a growing interest in industries such as DeFi and NFT. Falling supply and growing demand should determine a fairly clear upward trend in the price of ETH. Analysts predict that we could look at the level of $ 5,000 this year, and some even predict that by 2025, the price could soar to $ 25,000.

 

However, to calm the passions a bit, Ethereum is, of course, also the target of relevant criticism, which concerns, in particular, the high transaction fees. It can be said that this is an eternal problem of this blockchain, and the price per transaction can reach up to $ 500 when the network is overloaded. This is a weakness of the whole project, which is also the focus of the competition, and projects such as Solana, Polkadot and Cardano promise faster processing of transactions for fees in cents.


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More and more large companies are interested in cryptocurrencies, and those that already own them are constantly buying. It seems that the vast majority of the market is accumulating, and this year may be exciting for many cryptocurrencies in terms of price. A positive mood dominates the cryptocurrency market and, even the largest of them are gaining interesting returns. However, even with the second-largest cryptocurrency, the market situation does not look bad at all, and the bulls expect another overcoming of ATH soon.

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