Renowned analysts expect Ethereum to hit $5,000 amid supply shock


  • Ethereum on-chain metrics signal peak accumulation by large wallet holders, traders are bullish on the altcoin.
  • Analysts believe that altcoin is bootstrapping the metaverse through the NFT projects built on the Ethereum network. 
  • $113 million worth of ETH has been burned since London Hard Fork on OpenSea, a peer-to-peer NFT marketplace.

Cryptocurrency market capitalization has hit $2.38 trillion overall as Ethereum’s dominance rises to 20%. The altcoin has posted over 400% gains since the beginning of 2021. 

Ethereum accumulation by whales likely to push ETH to all-time high

Addresses holding Ethereum for over a year have increased consistently, hitting all-time high levels. This implies that the outlook among long-term holders is still bullish. Interestingly, few active wallets are holding Ethereum between $3500 and $3800 level. 

Analysts expect inactive wallet addresses to resist selling or exchanging their holdings in the short term. This reduces the selling pressure on exchanges, offering the altcoin further room for its upward climb. 

In/Out of the Money: Ethereum

In/Out of the Money: Ethereum. 

Despite increased competition from NFT projects on Ethereum alternatives like Solana and Cardano, analysts still consider ETH to be powering the metaverse. Pseudonymous analyst @iamDCinvestor tweeted:

The increasing popularity of NFTs, alongside the rising burn rate, is feeding the “supply shock” narrative of Ethereum. The most significant contributor to Ethereum’s burn is OpenSea, an Ethereum based peer-to-peer marketplace for NFTs. Based on data from ultrasound.money, OpenSea has contributed to burning 28,624 Ether. The burn rate has increased to hit 4.37 ETH/min.

Overall, analysts have a bullish outlook on Ethereum. Pseudonymous analyst @Thecryptomist has predicted that Ether is likely to hit $5000. 

FXStreet analysts have predicted that the altcoin is likely to cross $4100 in the ongoing price rally. 

 

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

Shiba Inu price to erase half of the losses incurred and tag $0.000028

Shiba Inu (SHIB) has shed around 40% of its value due to concerns in global markets about the FED rate decision this evening against a background of geopolitical turmoil.

More Shiba Inu News

XRP presents buying opportunity before breakout to $1

XRP continues to test a new support zone in the $0.60 value area. Bottom likely in for XRP, relief rally, or trend change incoming. The Point and Figure chart shows a bullish entry opportunity.

More Ripple News

Cardano primed for relief rally towards $2.20

A brief technical and on-chain analysis on Cardano price. FXStreet's analysts evaluate why ADA could rebound swiftly. 

More Cardano News

IMF pushes El Salvador to drop Bitcoin as legal tender

The International Monetary Fund (IMF) has told El Salvador to remove Bitcoin’s status as legal tender. The IMF directors stated the move was due to concerns around financial stability, integrity and consumer protection.

More Cryptocurrencies News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP