The Ethereum price has fallen by 1.5% in the past 24 hours, as the cryptocurrency market suffers a similar 2% fall in the same period.
At $1,920, ETH is also down by 4.5% in the last week, yet remains up by 6% in the last 30 days and by 60.5% since the beginning of the year.
Despite today’s fall, the bull case for ETH has been strengthened further by the news that major French bank Société Générale has launched a euro-denominated stablecoin on the Ethereum blockchain.
When combined with last week’s successful Shanghai upgrade and ongoing development work, such adoption news makes it clear that Ethereum is likely to remain the dominant layer-one blockchain for a long time to come.
It’s arguable that ETH may have to fall a little further before it can resume rising again, at least judging by its indicators.
For one, the coin’s relative strength index (purple) has fallen quite sharply in the past few days, with its descent to 50 indicating a big spike in selling pressure, which could get worse as the RSI falls towards 30 or lower.
Similarly, ETH’s 30-day moving average (yellow) remains much higher than its 200-day (blue), meaning that it’s still due a substantial fall, implying further price falls for the altcoin.
It’s also worth pointing out that the Ethereum price fell through the psychologically important $2,000 support level a couple of days, something which could also signal further drops.
However, it needs to be remembered that ETH has lost ground more because of the market and its need for a correction than for anything related to Ethereum itself and its development.
Indeed, the news that Société Générale’s digital assets unit is launching a stablecoin on Ethereum is a major validation of the platform.
Not only does it suggest that major financial institutions and enterprises are likelier to put their trust in Ethereum than any of its rivals, but it also shows that Ethereum’s recent development and updates are paying off in terms of adoption.
And most recently, the Shanghai update has only strengthened Ethereum’s fundamentals in that it has effectively completed the platform’s transition to a proof-of-stake consensus mechanism, enabling stakers to withdraw their stake and rewards.
The implementation of withdrawals is likely to increase Ethereum staking over time, with some analysts predicting that the platform’s staking rate (in terms of the overall supply of ETH) will rise somewhere close to 60%.
This will result in a big contraction in the circulating supply of ETH, which in turn should result in a steadily rising price over time.
As such, the market can expect ETH to return to $2,000 soon enough before starting a climb toward $3,000 by the end of the year.
From there, a new bull market in 2024 could push it back toward $4,000, where it will eventually start troubling its current all-time high of $4,878.
Buy Ethereum Now
As strong as Ethereum is on a fundamental level, it may not see substantial gains for several months now.
Because of this, traders on the hunt for quicker above-average gains may prefer to look towards newer altcoins, with some presale tokens having the potential for notable rises once they list a little later in the year.
One of the most promising of these is Love Hate Inu, a decentralized polling platform that will launch in the next few months.
It opened the presale for its LHINU token just less than a month ago, and it has already raised a very impressive $5 million.
Such a figure suggests that investors have become increasingly interested in Love Hate Inu’s platform, will reward users (in LHINU) for participating in a variety of polls and surveys.
Love Hate Inu’s polling works via staking, with users who stake a higher quantity of LHINU receiving a larger voting weight when they participate in polls.
While many online polling and survey companies have cropped up in the last few years, what sets Love Hate Inu apart from the pack is that aims to harness polling to the viral power of meme tokens and social media-based cryptocurrency communities.
Investors can join its presale by visiting the official Love Hate Inu website, where they can use USDT, ETH or fiat currency to buy the altcoin.
The sale is now in its fifth stage, with one LHINU token costing $0.0000115, although this will rise again to $0.0000125 in three days, so interested investors are advised to act sooner rather than later.
Visit Love Hate Inu Here
A quick 3min read about today's crypto news!
A quick 3min read about today's crypto news!