Ethereum has been the leader of the crypto market for the last month. It is showing some conviction as the cryptocurrency returns to its previous highs. Although the market cap of Ethereum has fallen over the past day it still appears bullish for further gains in the near future.
ETH traded at $ 3,157 at the time of writing. The daily chart shows a 2% loss. Ethereum gained greater momentum after the introduction of EIP-1559 in conjunction with Hard Fork London.
Alias trader Jackis closely monitors the price of ETH, CartographyIts potential long- and short-term scenarios. The former could see some variation and consolidation at current levels, as shown below.
This fractal predicts an Ethereum uptrend as the cryptocurrency nears August’s end. ETH holders may see further gains at that point, with some setbacks.
Jackis made this prediction comparing Ethereum’s past rise to its high point north of $4,000. The price target for this future rally is $ 3,700 to $ 3,800 before the price experiences a significant retracement.
The trader stated that the price of ETH is experiencing resistance in a channel that was established after the 2017 rally. ETH reached its previous all-time high of $ 1,400 at that time.
After a long period, ETH’s price slowly recovered to channel highs. It could target $ 20,000 to $ 40,000 as a price target. This coincides with other experts’ predictions as ETH migrates onto its Proof-of-Stake(PoS) blockchain.
The EIP-1559, the DeFi industry’s growth and the NFT craze make Ethereum and its ecosystem potential bullish catalysts. Messari Research reported that the DeFi industry has reached $ 148 Billion in total locked-in value.
The global total value of DeFi has just reached $ 148 billion. It is fast approaching new ATHs. Solana, Terra and Ethereum are leading the charge. In fact, the two most recent ATHs were printed by Terra and Ethereum.
Ethereum 2.0: The Global Blockchain of Choice?
After the migration to Ethereum 2.0 is completed, the ecosystem may benefit from new financial tools as well as a new economic model. Natasha Che, analyst Claim, ETH could replace traditional “risk-free” investment assets such as US Treasuries in “any portfolio”.
The analyst compared Ethereum’s economy to a country with a strong economy and the transaction fee mechanism as a tool to collect taxes.
The crypto is currently playing with itself in the sandbox. NFT and deFi are the activities. But it’s only a matter of time before “real economy” stuff starts happening on the chain. Regulate imports and Exports, Buy houses and Cars, Pay employees and Contractors.
This economic ecosystem is more accessible than the United States or any other country and offers more opportunities to earn higher incomes. So owning ETH will be similar to owning a “cut” of this huge global value chain.
Why are US Treasuries considered risk free assets? Because they are supported in part by tax revenues from the largest economy in the world. But since gasoline charges are “tax revenues” for the entire world economy, Ethereum on its own can beat US Treasuries in the game of risk-free assets.