3 reasons why Ethereum price can still retest $3K this month

Ethereum’s native token, Ether, (ETH), could be worth back $3,000 in March. This is backed by a mixture of short-term, technical, fundamental, and on-chain catalysts.

The price of ETH paints a “symmetrical triangle”.

Ironically, the first interim bullish outlook on Ether comes from a bearish continuation.

Notably, ETH saw a 50% drop from its Dec. 2, 2021 all-time high at $4,650. This was followed by the formation of a consolidation channel known as a symmetrical triangular. Since the beginning of the year, Ethereum has fluctuated between a declining upper trendline and rising lower trendline.

Daily price chart for ETH/USD featuring symmetrical triangle. Source: TradingView

ETH/USD retested support at the lower trendline of the triangle on March 14, near $2,500. This was after a sharp correction that saw sellers close to the 20-day exponential moving Average (20-day EMA) as shown in the chart.

Since then, ETH’s prices have rebounded as high as 9.26%. On March 16, ETH closed above the 20-day EMA resistance to reach nearly $2,750.

A decisive rebound and an increase in trading volumes could make Ether’s next upside target at $3,000.

The Merge

Tim Beiko, an Ethereum developer, announced on March 15 that they had successfully tested “Merge”, using the Kiln testnet. This raised speculations that the protocol might switch completely from proof-of work to proof-of stake in Q2/2022.

It seems to have worked! Validators are producing post-merge blocks, which contain transactions. https://t.co/xearnsuZFp Just waiting on finalization now https://t.co/BEfJOI4qqj pic.twitter.com/c4p1UXB5vw
— Tim Beiko | timbeiko.eth (@TimBeiko) March 15, 2022

Since December 2020, Ethereum’s first consensus layer upgrade in December 2020, the Merge has been a major bullish prospect.

Arcane Research reported in its weekly report that a total 312,000 validators had staked 10,000,000 ETH on the Merge, also known as Ethereum 2.0 smart contacts.

This amounts to almost $26 billion in Ether, which is more than 8 percent of the total circulating supply. Its price has risen by almost 360% since its December 2020 low of $525, due to higher demand and the possibility of Ether being out of circulation.

Crypto Testers founder Lito Coen anticipates that the Merge will see Ethereum’s daily emission rate drop from 12,000 ETH per hour to 1,280 ETH per day. He also noted that the network’s “yearly inflation will go down from 4.3% – 0.43%” — which is equivalent to three Bitcoin halvings.

Ethereum supply growth. Source: Lito Coen

Coen stated that the 0.4% inflation figure does not include the EIP-1559 automated ETH burning ($5b burned since launch). ETH burn will deflationary if taken into account Ethereum.

Positive divergence in utility and price

According to data from Santiment, there is a bullish divergence in Ethereum’s daily active addresses and ETH’s market price.

Notably, Ethereum’s DAA declined but not as much the prices which fell about 35% over the past four months. This indicated that users continue to interact with Ethereum for purposes other than speculation and trading.

Similar: How professional Ethereum traders place bullish price bets on ETH while limiting their losses

Santiment, citing the chart below, stated that “ETH active addresses divergence still remains in the area prices historically rise.”

Divergence in the price of Ethereum DAA. Source: Santiment

“This is a vote to confidence in Ethereum, and a statement that (and growing) it’s here to remain (and grow),” Michael Pearl, chief operating office of Kirobo decentralized application developer, said. He also stated that ETH’s growth in decentralized finance would increase its price beyond $3,000.

com. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/3-reasons-why-ethereum-price-can-still-retest-3k-this-month

Charles Griffin

Charles Griffin – Business and Transportation I am Charles Griffin with more than 10 years of experience in the Stock market industry, I am energetic about Finance and Business news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of Magnewspress.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Business News category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.  

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