Ethereum Cryptocurrency Will Rise to $3,000 With Network Activity, According to Analysis

Amid the effervescence of the cryptocurrency market with Bitcoin ETFs, a protagonist has been attracting special attention: Ether (ETH), the native cryptocurrency of the Ethereum platform. According to recent analyses, the ETH cryptocurrency is charting an upward movement that could take it to surpass the US$3,000 mark. The reason? An increasingly robust network activity that paints a deflationary scenario for the token.

Let’s look at the numbers that outline this optimism. Ethereum’s weekly revenue, a metric that takes into account transaction fees (or “gas”), saw a significant jump, rising above $30 million for two consecutive weeks. This increase is notable, especially if we compare it to the annual floor of US$12 million recorded at the beginning of October. This data from the Token Terminal is one indication of the recovery of the strength of the Ethereum network.

Ethereum ecosystem revenues are reaching low levels. Although ETH briefly pierced this 1,550 on two occasions, it ended up being the main support level from which a new uptrend was able to regain strength. Bitcoin dominance appears to have peaked at 53.4%, and the decline to 51.8% signals that traders are adding more risk through ETH or other altcoins. The futures perpetual funding rate for Bitcoin and Ethereum is also trading at elevated levels, which supports a more aggressive view on beaten-down altcoins.

Market analysts, such as Markus Thielen from Matrixport, suggest that this increase in revenue is a strong indication that Ether may be preparing for a new wave of appreciation. “A bullish tactical trade could have merit,” notes Thielen, pointing to indications that the network is not only more active, but also more profitable.

The game changer for Ethereum does not go unnoticed when we remember that, in October, the currency went through a period of seven months of decline, losing ground significantly to Bitcoin (BTC). But the wind seems to have changed direction. With the cryptocurrency market witnessing a broader recovery, ETH has seen an approximately 20% increase in value, most recently trading at around $1,870.

This recovery is even more significant when we note that, not long ago, the prospects for Ethereum were not so promising. The decline in network revenues and user activity had painted a less rosy picture for the cryptocurrency. Now, with the turnaround in revenue indicators and growing interest in the network, projections for Ether take on a more confident tone.

Investors and Ethereum enthusiasts can look to these developments as a sign that the cryptocurrency has the potential to not only maintain its relevance but also expand its value in the market.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.