Ethereum Price Prediction as Bulls Hold ETH Above $1,500 – Here’s Where ETH Heads Next

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Source: Trading View

Ethereum price has been unchanged for the past 24 hours, with its move to $1,567 over the weekend, meaning it has fallen 4% in one week and 6% in the past 30 days. However, it remains up 31% since the start of 2023, with its support level of $1,550 holding for the past few days, suggesting that it will not return to last year’s lows.

And with Ethereum having some of the strongest fundamentals in the market, there is no doubt that ETH will continue to rise once the market returns to growth. Of course, the upcoming Shanghai upgrade, which allows withdrawal staking, may cause a temporary drop, but recent positive Ethereum-related news (e.g. from Coinbase and Visa) suggests that ETH is only going up longer term.

Ethereum Price Prediction as Bulls Hold ETH Above $1,500 – Here’s Where ETH Heads Next

ETH’s chart suggests that it still has further declines in store before it can resume the rally. Its 30-day moving average (red), for example, has flattened over the past week and now appears to be starting to fall back towards its 200-day average (blue), signaling further losses.

Source: Trading View

Similarly, ETH’s Relative Strength Index (purple) has now fallen below 50 and may decline. It won’t hit rock bottom until it hits around 30 or 20.

However, as shown above, the coin did well to maintain its $1,550 support level, which it has not broken since early February. And even then, he quickly recouped as much as $1,600 within days.

So, even though ETH is likely to fall further in the coming days, it is sure to recover quite quickly. That said, the market has to hope that the (potentially) impending bankruptcy of Silvergate Bank does not cause other crypto-related businesses to fall in its wake, which could lead to continued selling in the medium term.

While most exchanges have now severed ties with the seemingly failing Silvergate Bank, if the latter’s failure causes a cascade of similar meltdowns, ETH could struggle to maintain its support level. That said, if it’s only Silvergate that’s affected, it looks like the market’s sell-off over the weekend has already factored in its bankruptcy, so it may not cause more pain once it does. she will have effectively filed for bankruptcy protection.

And once the fallout from Silvergate’s demise subsides, ETH remains better positioned than most other cryptocurrencies to continue its recovery. This is for a variety of reasons, but the underlying factor is that it’s the dominant Layer 1 network by a wide margin, and its recent upgrades have put it on the right path to cementing that position. in the months and years to come.

And he continues to enjoy positive news. More recently, Coinbase announced that it was launching its own layer two sidechain for Ethereum, dubbed Base.

What’s important with the launch of Base is that Coinbase aims to use it to “integrate 1B+ users into the crypto-economy.” This means that it aims to bring an additional billion users into the Ethereum ecosystem.

By extension, this also means growing demand for ETH, with all layer two transactions eventually being settled using the Ethereum blockchain and its native token. So, combined with updates (e.g. EIP 1559) that reduced the net minting of new tokens by Ethereum, the demand for ETH relative to the supply could increase significantly.

Other positive news for Ethereum includes news from last month that payments giant Visa is testing USDC stablecoin payments on the Ethereum blockchain. So not only is Coinbase entering the Ethereum ecosystem, but so is one of the largest payment companies in the world.

Ethereum is also preparing to release the Shanghai update, which allows stakers to withdraw ETH they have locked and received as a reward. While some commentators claim this will lead to a short-term sell-off, this is another positive benchmark for Ethereum, as it effectively reduces staking risks for users.

With all of this in mind, ETH will likely return to $1,700 once the Silvergate-related drama is over. And by the end of the year, it could easily have topped $2,000 and be on its way to a serious recovery.

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