After failing to break the early November resistance in the $1,675 region towards the end of last week, Ethereum blockchain’s native token, Ether (ETH), is in a consolidation phase.After losing nearly 5% in the last 24 hours, traders remain sideways in the $1,550 region as they watch forward macro factors, including fourth-quarter US GDP growth figures.on Friday.
These data may affect the outlook for the tightening of FED policy this year, which could affect the crypto industry: the Fed’s easing stance due to slowdown in US inflation and growth contributed to the rise in the crypto market at the beginning of the year.Indeed, despite its recent consolidation, Ethereum is still trading over 35% so far this year, making it the market’s second-largest cryptocurrency by market capitalization is on track to display its best-ever monthly performance since July 2022.means.
What’s next for ETH?
A supportive macro backdrop and optimism that Ethereum’s upcoming upgrade will allow withdrawals could well support the cryptocurrency’s upside.Indeed, the progress towards the “Shanghai” hard fork seems to be proceeding smoothly – one of the Ethereum developers announced on Twitter that a new testnet has been created for staking ETH withdrawals.
On the other hand, if ETH supply conditions remain deflationary, this could be another positive factor for further bullishness.
ETH’s annual inflation rate once again fell into negative territory early last week for the first time since November, according to data from ultrasound.money.
A break above the $1,675 resistance area could open the door for a rapid advance towards the next major resistance zone near $1,790 and then the summer 2020 highs of $2,030.
Expert price predictions
According to algorithm-based crypto forecasting site Wallet Investor, Ethereum is expected to trade at just over $700 per year from now on, about 55% below current levels.
DigitalCoinPrice analysts aren’t all that bearish.Their algorithms predict that Ethereum will end at around $3,450 in 2023, an impressive increase of over 100% from current levels.
According to a recent survey of 55 fintech experts conducted by Finder.comEthereum is expected to finish 2025 at $5,150 before reaching $11,700 in 2030.OsomFinance, Anton ExchangeHe explained that his optimism is largely due to the success of the merger that emerged last year, which turned ETH into a both deflationary and yield-boosting asset.
He added that pessimism about the Fed’s tightening will ease in 2023, adding that concerns about ETH staking will soon fade, thanks to the next Shanghai upgrade expected at the end of this quarter.
martin froehlerCEO Morfer, also has a bullish outlook.
Foehler believes that massive institutional demand for ETH is expected in the coming years due to the positive characteristics of the cryptocurrency.These include the approximately 5% return on ETH through staking, its eco-friendly nature after leaving proof-of-work for staking, its classification as a commodity, and the fact that it has a regulated futures contract.CME to protect itself against price volatility.
Is it too late to buy Ethereum?
If the above bullish predictions are correct, it’s certainly not too late.It would be better to invest in ETH when it drops to $800 in June 2022.
However, if you are a long-term investor who wants to hold Ethereum until it rises above $10,000, it doesn’t matter whether you buy at $800 or current levels.
Ethereum is still about 65% down from its highs at $4,800 at the end of 2021.Buying while still below 65% of recent highs has proven to be a profitable strategy so far.
Alternatives to Ethereum
Presale tokens are currently among the most attractive assets on the market as they are available at very affordable prices.
Meta Masters Guild (MEMAG)
Investors interested in thriving win-to-play (P2E) cryptocurrencies should keep a close eye on the Meta Masters Guild (MMG) project.Describing itself as the leading web3 game guild on mobile, the ecosystem hopes to offer high-quality blockchain-based games.
Meta Master Guild distinguishes itself from existing P2E platforms such as Axie Infinity, The Sandbox and Decentraland by providing community members with fun games that offer many monetization opportunities, including providing in-game resources, creating content, and participating in events.
Players in the first mobile-focused Web3 game guild will earn a currency called Gems.These tokens are versatile as they can be exchanged for the platform’s native token, MEMAG, which can be staked for further rewards.
They can also be used to purchase in-game NFTs or be traded with other cryptocurrencies such as ETH.
Combat (FGHT)
Fight Out is a new crypto project that hopes to redefine the fitness lifestyle via Web3.Fight Out is a “Move to Win” (M2E) application.gamify“fitness lifestyle.Ecosystem users are rewarded for completing pre-set workouts and challenges while earning badges within a vibrant community.
An incentive system will operate the ecosystem where users earn FGHT tokens by completing M2E tasks.
Unlike existing Move-to-Earn crypto ecosystems like STEPN, FightOut users will not need expensive NFTs.Instead, FightOut uses simple technology solutions with digital avatars to make it easier for Web2 viewers to access the metadata store..
