|

Triple Halving author says Ethereum will reach $150,000

  • Dormant Ethereum, one of the key ingredients that sparks a bullrun, shows signs of moving.
  • As total value locked in the decentralized finance (DeFi) ecosystem gets closer to a new all-time high, Ethereum dominance increases.
  • Nikhil Shamapant, independent Ethereum analyst and author of the "Ethereum Triple Halving paper," has a bullish outlook on the altcoin and sets a price target of $150,000.

The top two addresses with the highest Ethereum balances on Etherscan are the ETH2 staking contract with over 7 million ETH and wrapped Ether (WETH) with 6.7 million ETH. The surge in staked Ethereum is driving altcoin's dominance in the crypto market higher. 

Ethereum dominance increases as the altcoin prepares for second leg of the price rally

Currently, Ethereum is trading at $3269, and its dominance is at 17.9%. A direct correlation has emerged between Ethereum's price and dominance. With the price increase, the altcoin's dominance has increased consistently over the last five months. 

Alongside Ethereum, the volume of wrapped Ethereum used to pay for gas or transaction fees for contracts executed on the network has noted a steady rise. WETH now accounts for nearly 6.7 million Ether, supporting the increase in the second-largest cryptocurrency's market dominance. 

One of the key indicators of a bull run, the movement of dormant Ethereum, was recorded earlier today by Santiment data. Ethereum's mean Dollar invested age curve represents the average age of the Ethereum moving on the blockchain network, and it has significantly flattened. 

The movement of Ethereum that was held for a long time indicates the second leg of the altcoin's price rally. 

Ethereum's mean dollar invested age

Ethereum's mean Dollar invested age.

Independent Ethereum analyst and author of "Ethereum, The Triple Halving," Nikhil Shamapant, remains bullish on the altcoin. In a recent interview with Divya Narendra, CEO, and co-founder of SumZero, Nikhil Shamapant set a new price target for Ethereum at $150,000. 

Shamapant explains how Ethereum staked in the ETH2 contract reduces the total number of Ether in circulation and drives the price higher through an enforced shortage. 

One thing I've been really trying to pound the table on is that staked ETH it's like economically enforced hodling right. It's always going to be staked; there's going to be a circulating supply of staked ETH, separately there's going to be a circulating supply of unstaked ETH. There's no fear or cultural change that's going to cause these hodlers to suddenly sell.

According to FXStreet analysts, looking at the market capitalization and dominance of Ethereum, there have been four consecutive up weeks. Any close below $2900 would be a bearish development; on the upside, $3587 is the level to watch out for a bullish breakout. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

Cardano Price Forecast: Weak momentum puts ADA recovery at risk

Cardano is trading below $0.222 on Thursday after failing to sustain gains above the 50-day Exponential Moving Average near $0.228 the previous day. Weakening derivatives metrics and fading bullish momentum continue to weigh on sentiment, while a break below the 100-day EMA could push ADA lower. Derivatives data shows a cautious outlook for Cardano.

Ripple and Stellar outlook: XRP and XLM recovery stalls below EMAs

Ripple and Stellar remain under pressure on Thursday as both struggle to sustain their recent recovery attempts. XRP trades below $1.36, while XLM slips beneath $0.183, as mixed derivatives metrics, weakening momentum indicators and heating market conditions suggest cautious market sentiment. Derivatives data shows weakening conditions for Ripple and Stellar.

Zcash Price Forecast: ZEC reclaims $1,300 as ETF inflow hits 30-day high

Zcash price hovers above $1,300 on Thursday, sustaining its 15% gains so far this week with three straight days of recovery. Institutional and retail appeal is returning, with over $15 million in inflows recorded on Wednesday and ZEC futures Open Interest rising to a 30-day high of $2.89 billion. The technical outlook for ZEC indicates an upside bias as recovery gains traction.

Bitcoin derivatives improve, but $87,000 sell wall looms
Bitcoin (BTC) showed signs of recovery on Wednesday as derivatives positioning improved, but sell risk grew between $86,500 and $87,500, where sell orders and leveraged liquidation clusters could limit further gains.
Bitcoin: Macroeconomic headwinds, cooling demand cap BTC gains
Bitcoin (BTC) extends losses this week, trading below $82,500 as of Friday as selling pressure continues. Weakening institutional demand supports this pullback as BTC spot Exchange-Traded Funds (ETFs) are on track to record a two-week withdrawal streak, reaching $146.19 million in net outflows through Thursday.