Erik Weijers, a year ago
There are entire armies of analysts who make price predictions based on technical analysis: analyzing price charts. While this type of analysis is valuable, there are other, more fundamental ways to make estimates about (future) price development.
Compare it to two ways of estimating future home prices. You can look at the past price development but you can also dig deeper, for example for data on how many houses will be built, or immigration data for a region.
We take a look at one technical indicator of ETH and four so-called on-chain indicators of Ether.
It appears that ETH is breaking out of the ascending triangle pattern, as described in this article. Although nothing is completely certain yet, it seems that the ETH price expressed in Bitcoin is going to rise significantly.
The reverse would be a touch alarming: when people collectively move their crypto from their cold storage to their exchange, it is often a sign that they want to sell. But when the opposite happens, as it is now, they most likely don't want to sell. This creates upward pressure on the price. The figure also clearly shows the inverse relationship between the amount of ETH on crypto exchanges and the price.
The vast majority of this tied-up ETH (77%) is sitting in decentralized finance applications (defi). For example, the ETH is tied up there as collateral for a loan. This ETH is therefore not immediately available for sale on the market.
By staking Eth, depositors receive interest. Currently 8.5 million ETH is tied up in staking contracts, only to be released when ETH 2.0 will launch sometime in 2022. That's more than 7% of the total amount of Ether not being currently available.
Already a million ETH have already been "burned" since early August of 2021. See this article. Another factor that is pushing up the scarcity of ETH.
In short, a combination of factors is leading to a situation where less and less ETH is available for sale. Of course, the supply side tells only one half of the story. But on the demand side, there are no signs of cooling. The number of active ETH addresses, for example, continues to grow solidly at about 50% per year. You do the math!
More investors are looking at these data, so it's no surprise that there are a lot of ETH bulls out there. Renowned macro-investor Raoul Pal (Real Vision) is almost all-in in ETH. and Cathie Woord (ARK Invest) has announced that ARK will put about 40% of their crypto-funds in ETH in the future.
Mar 17, 2023
After over two years since staking Ether became possible, stakers may finally withdraw their Ether. It all hinges on the proper execution of the Shanghai hardfork, which now has a date: April 12.
Mar 06, 2023
Lido is the biggest provider of liquid staking, with only a few competitors who are starting to conquer some of its market shares. Liquid staking has many advantages. One of them is being able to invest or spend Ether that is being staked. Recently, Lido set a record that is notable and also tells about the long-term sentiment of market participants.
Mar 02, 2023
Ethereum underwent a lot of changes when switching to proof of stake and the roadmap to finalize Ethereum 2.0 is still long. Other improvements that are in the making haven’t caught much attention because the Merge and its aftermath stole the whole show. Yesterday, a groundbreaking improvement was announced that is believed to have the potential to drive user adoption of Ethereum by improving its overall usability.
Feb 28, 2023
The Shanghai upgrade is the next important step for Ethereum and its economy. But before the upgrade can be implemented a lot of thorough testing needs to be done. Some of the tests were held successfully and most spectators anticipate that Shanghai can be rolled out once all other tests are finished. Interestingly enough, a situation has developed on Goerli, the last testnet that Shanghai needs to be tested with.
Sign up to stay informed via our email updates