Ethereum Price Pain Predicted Despite Solid Fundamentals


Fundamentally, Ethereal never looked in better shape. However, ETH price action has not reflected this..

It’s been 100 days since the Ethereum merger, and the network has become more sustainable and environmentally resilient.

Work test mining was replaced by a proof of participation consensus model. This has reduced the power consumption of the network by more than 99%.

On Dec. 25, ETH developer “superphiz” commented on the narrative stating, “we just did the right thing.”

According to Beaconcha.in, there are currently 15.7 million ETH staked, which is about 13% of the total supply. At today’s prices, it is valued at around $19.2 billion.

Furthermore, there are currently more than 490,000 active validators on the Ethereum network. Bitcoin‘s hash rate collapsed due to severe weather conditions and stress on power grids in the United States. Ethereum no longer has this problem.

Ethereum leads NFT activity

The bet is not the only bullish fundamental for Ethereum. It is also the world’s leading NFT ecosystem. According to Nansen, in 2022 a total of $23.7 billion worth of NFTs were minted and traded on Ethereum.

Also, it is way ahead of the second largest NFT ecosystem, Solarium. Other touted ‘Ethereum killers’, such as Cardano and Polkadot, don’t even come close to NFT activity.

Ethereum issuance is currently close to zero, according to Ultrasound.Money tracker. Supply is growing just 0.012% per year and is down marginally from its peak of 121.3K ETH.

The biggest gas guzzler right now is batch processor CoinTool XEN, which has burned 164 ETH in the last 24 hours. XES it is a token that anyone can mint and it is shaped like a pyramid tokenomics but still seems to be popular.

Grim Price Predictions for ETH

The positive fundamentals for the network and the ecosystem have not been reflected in the price action. Ethereum is currently trading unchanged on the day at $1,220 at the time of writing.

There has been virtually no price movement over the weekend as the asset has been range bound at the $1200 level.

However, analysts are predicting more price pain for ETH. Also, technical indicators suggest that support at current levels could be broken soon.

Furthermore, bearish triangles are also present. This has led one analyst to predict a drop to $1,080 for ETH prices.

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