Ethereum Is a 21st-Century Finance Building Block
Ethereum’s demand and adoption are increasing, while its supply is decreasing. However, Ethereum’s position as the foundation for challenging the old finance industry would also contribute to its price increase.
BI CryptoDemand and adoption are increasing while supply is decreasing, and Ethereum’s position at the hub of finance and money digitalization may serve as a basis for further price appreciation. Ethereum is currently issuing new Ether at 4% per year. However, this is likely to drop to roughly 0.5-1 % as part of the Ethereum 2.0 upgrade. Many believe that once this occurs, the burn rate of Ether will be greater than the token’s issuance, causing ETH to become a deflationary currency. Since Ethereum was the first network to allow the development of NFT and DeFi projects, it continues to be the network with the most of them. As a result of the network’s $124B total volume locked (TVL), it is the network with the greatest TVL among other networks.
According to industry estimates, Ethereum’s gas charge earnings would likely be around $12.5 billion this year. If this projection is correct, the network’s gas fee earnings will be 35% greater than last year.
Ethereum Revisits $2.8K
Ethereum began a new drop from the $3,030 resistance level versus the US dollar. ETH has even dropped below $2,800 and is now attempting an upswing correction.
Ethereum began a significant slide below the $2,950 and $2,860 support levels.
The price is currently trading below $2,950 and the 100 hourly simple moving average.
On the hourly chart of ETH/USD, a critical negative trend line is forming with resistance near $2,910.
Ethereum has been unable to acquire traction to break through the $3,030 resistance level. ETH produced a peak and began a significant drop below the $2,950 support level.
The price fell sharply below $2,900 and the 100 hourly simple moving average. The cost of Ether even dropped below the $2,800 support level. A new weekly low of $2,766 records, and the price is now consolidating losses. It has risen past the $2,800 mark.
The next significant obstacle is near $2,900. On the hourly chart of ETH/USD, a critical negative trend line is forming with resistance near $2,910. The trend line is close to the latest drop’s 50% Fib retracement level from the $3,041 swing high to the $2,766 low.
If ethereum fails to break through the $2,900 barrier, it may continue to fall. On the downside, an early support level is near $2,800.
The first significant support locates near the $2,765 level. If the price falls below the $2,765 support level, it may begin to fall again. The following critical support level is near $2,650, below which there is a possibility of a fall towards $2,500.
