Ethereum Weekly Forecast: Social media giants give away ETH-based NFTs as bulls set stage for $3,000

  • Ethereum price prepares for a 40% advance to retest $3,000.
  • Twitter and Reddit launch ETH-based NFTs on Rarible and OpenSea, respectively.
  • EY announced to open-source Nightfall 3 to increase transaction efficiency by reducing gas fees via zero-knowledge proofs.

Ethereum price seems to have hit a local top for its recent slow but steady uptrend. A minor retracement into a demand zone is likely and necessary for the upswing that the bulls have been waiting for.

Twitter and Reddit step up their NFT game

Social media giant Reddit auctioned three ‘CryptoSnoos,’ NFTs built on the Ethereum blockchain on OpenSea. Helium, Original Block and Snoopremaitc were the auctioned NFTs sold for 105, 175, and 115 ETH, respectively. 

Kraken CEO Jesse Powel participated in the bid and acquired the Snoopermatic NFT.

Twitter followed Reddit’s lead and created eight NFTs for sale via ‘The 140 Collection’ on Rarible.

These developments suggest that despite the slump in the general cryptocurrency market, the adoption of Ethereum-based applications is unaffected. Unlike Bitcoin, which can only be used as a store of value or speculative currency, the ETH blockchain accrues fundamental value and continues to improve.

Miners and network congestion

While the adoption of Ethereum continues to grow, the hash rate and the miner revenue plummet as ripples of China’s digital currency mining clampdown propagate. 

ETH hash rate dropped from 643 terra hash per second (TH/s) on May 20 to 499TH/s on July 4, representing a 22% decline. On a similar note, the Ethereum miner revenue shrunk by 53% between May and June.

Ethereum Improvement Proposal (EIP)-1559, which is said to take effect in the London hardfork in late July, will change the nature of how fees are collected via transactions. Additionally, this EIP will be user-focused and might negatively affect miners while vastly improving the scalability of ETH. 

Therefore, the recent 53% drawdown is another gut-punch to Ether miners, who are migrating to regulatory-friendly countries after the recent mining ban in China.

ETH hash rate chart

ETH hash rate chart

While EIP-1559 will help ETH with scaling and reducing gas fees, Ernst and Young’s Nightfall 3 is another significant milestone in this regard.

According to a recent announcement, Nightfall 3, a Layer 2 protocol, was open-sourced on July 1. The latest release, albeit experimental, will complete Zero-Knowledge Proof (ZKP) transactions for roughly 10 kGas compared to 700 kGas for the original Nightfall application, with a potential reduction of up to 8 kGas via pending updates.

Ethereum price eyes retest of range highs

Ethereum price is still in the range like most altcoins and the flagship cryptocurrency. However, the recent run-up between June 23 to date has set up three higher highs and two higher lows. When these swing points are connected using trend lines, a rising wedge pattern forms.

This setup forecasts a 16% downswing to $1,909, determined by measuring the distance between the first swing high and low and adding it to the breakout point at $2,271. Therefore, a decisive close below the lower trend line coinciding with the support level at $2,271 will indicate a breakout.

While the technical formation predicts a 16% crash, the demand zone ranging from $2,041 to $2,106 could absorb the selling pressure and halt it.

If this were to happen, it would indicate the presence of buyers and propel Ethereum price upward by 10% to retest the midpoint of the range at $2,320. A decisive close above this level opens up the path to $2,912. 

The move to $2,912 or $3,000 is expected to be a slow climb with minor retracements at $2,460 and $2,640.

If the bid orders continue to pile up after tagging $3,000, ETH might likely retest the resistance level at $3,240.

ETH/USDT 1-day chart

ETH/USDT 1-day chart

Supporting the short-term price drop from the rising wedge pattern is the 365-day Market Value to Realized Value (MVRV) model, hovering around 26.2%.

This fundamental index measures the profit/loss of investors who purchased ETH over the past year. The current value represents that 26.2% of the market participants that bought Ether are still in profit. 

Therefore, these investors might want to book profit, pushing Ethereum price lower.

Ethereum 365-day MVRV chart

Ethereum 365-day MVRV chart

The supply on exchanges confirms that Ethereum price remains bullish from a long-term perspective. Over the past three months, this metric has dropped from 22.2 million to 20.8 million ETH. 

This 6% plummet indicates that investors are moving their holdings from exchange to cold wallets as they are confident in Ethereum price performance over the upcoming months.

ETH supply on exchanges chart

ETH supply on exchanges chart

Further strengthening the case for $3,000 is the increase in whales holding between 1,000,000 to 10,000,000 ETH after a month of stagnation.

The total number of these investors in this category went from 8 to 9 between May 19 and June 17, which is a bullish confirmation of their investment thesis.

ETH supply distribution

ETH supply distribution

On the flip side, if Ethereum price fails to hold above the demand zone, extending from $2,041 to $2,106, the rising wedge’s target at $1,909 could be tagged.

A potential spike in selling pressure that pushes ETH to produce a decisive daily candlestick close below the range low at $1,728 will invalidate the bullish thesis and open the path for further down moves.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast