The price of Ethereum is set to rise by 40% to retest $3,000.
Twitter and Reddit, respectively, have launched ETH-based NFTs on Rarible and OpenSea.
EY has announced that Nightfall 3 would be open-sourced in order to improve transaction efficiency by lowering gas fees through zero-knowledge proofs.
Ethereum’s recent sluggish but steady climb appears to have reached a local high. For the upswing that the bulls have been waiting for, a modest retracement into a demand zone is likely and necessary.
Three ‘CryptoSnoos,’ NFTs constructed on the Ethereum blockchain, were auctioned off by Reddit on OpenSea. The auctioned NFTs Helium, Original Block, and Snoopremaitc sold for 105, 175, and 115 ETH, respectively.
Jesse Powel, the CEO of Kraken, took part in the auction and bought the Snoopermatic NFT.
Twitter followed Reddit’s lead and released eight NFTs through Rarible’s ‘The 140 Collection.’
These discoveries show that, despite the general cryptocurrency market downturn, Ethereum-based apps will continue to gain traction. Unlike Bitcoin, which can only be used as a store of value or speculative currency, the Ethereum blockchain accumulates inherent value and improves with time.
While Ethereum use continues to rise, the hash rate and miner earnings are falling as the effects of China’s digital currency mining crackdown spread.
The hash rate of Ethereum fell from 643 tera hash per second (TH/s) on May 20 to 499TH/s on July 4, a 22% drop. In a similar vein, between May and June, Ethereum miner revenue fell by 53%.
The Ethereum Improvement Proposal (EIP)-1559, which is set to go into effect in the London hardfork in late July, would alter the way fees are collected through transactions. Furthermore, this EIP will be user-focused and may have a detrimental impact on miners while substantially boosting ETH’s scalability.
As a result, the current 53 percent fall is yet another setback for Ether miners, who are fleeing to more regulatory-friendly countries in the wake of China’s recent mining ban.
Hashrate graph for Ethereum
While EIP-1559 will aid ETH in scaling and lowering gas expenses, Ernst and Young’s Nightfall 3 is another big step forward.
Nightfall 3, a Layer 2 protocol, was open-sourced on July 1, according to a recent release. The latest edition, while still experimental, will process Zero-Knowledge Proof (ZKP) transactions in around 10 kGas, compared to 700 kGas for the original Nightfall program, with forthcoming improvements potentially reducing this to 8 kGas.
The price of Ethereum, like most altcoins and the flagship cryptocurrency, is remained in the range. However, the latest rally from June 23 to now has resulted in three new highs and two new lows. When trend lines are used to link these swing points, a rising wedge pattern emerges.
This setup predicts a 16 percent drop to $1,909, which is calculated by adding the distance between the initial swing high and low to the breakout point at $2,271. As a result, a significant closing below the lower trend line, which coincides with the $2,271 support level, will signal a breakout.
While the technical formation anticipates a 16 percent drop, the demand zone between $2,041 and $2,106 has the potential to absorb and stop the selling pressure.
If this occurs, it will signal the presence of buyers and boost Ethereum’s price upward by 10% to retest the range’s midpoint at $2,320. A decisive closing above this level opens the door to $2,912 as the next target.
The ascent to $2,912 or $3,000 should be gradual, with modest retracements at $2,460 and $2,640.
If bid orders continue to build up after hitting $3,000, ETH will almost certainly retest the $3,240 resistance level.
1-day chart of ETH/USDT
The 365-day Market Value to Realized Value (MVRV) model, which is sitting around 26.2 percent, is supporting the short-term price decline from the rising wedge pattern.
This fundamental index tracks the profit and loss of investors who bought ETH in the previous year. At the current price, 26.2 percent of market participants who purchased Ether are still profiting.
As a result, these investors may decide to take a profit, causing the price of Ethereum to fall.
MVRV graphic for Ethereum over a 365-day period
From a long-term view, the supply on exchanges confirms that Ethereum pricing remains optimistic. This measure has declined from 22.2 million to 20.8 million ETH in the last three months.
This 6% drop implies that investors are transferring their holdings from exchanges to cold wallets, indicating that they are optimistic about Ethereum’s price prospects in the next months.
Chart of ETH supply on exchanges
The growth of whales owning between 1,000,000 and 10,000,000 ETH after a month of stagnation adds to the case for $3,000.
Between May 19 and June 17, the overall number of these investors in this group increased from 8 to 9, indicating a bullish confirmation of their investment thesis.
The distribution of ETH
If Ethereum price fails to hold above the demand zone, which extends from $2,041 to $2,106, the rising wedge’s target of $1,909 may be marked.
A surge in selling pressure that drives ETH below the range low at $1,728 will discredit the bullish thesis and pave the way for more declines./n
