Ethereum, which led the crypto market last month, is still showing conviction as it returns to previous highs. The second cryptocurrency by market capitalization slowed down on the last day but still appears bullish for further gains in the short term.
At the time of writing, ETH is trading at $ 3,157 with a 2% loss on the daily chart. After the EIP-1559 was introduced with the London Hard Fork, Ethereum took on a stronger upward momentum.
ETH with slight losses in the 24-hour chart. Source: ETHUSD Tradingview
The pseudonym dealer Jackis has kept a close eye on the price of the ETH and mapped out its potential short-term and long-term scenarios. The former could see some range and consolidation at current levels, as shown below.
Source: Trader Jackis via Twitter
This fractal predicts a possible upward move for Ethereum as the cryptocurrency approaches in late August. At that time, ETH holders were able to make further profits with a few setbacks.
Jackis drew that prediction by comparing Ethereum’s previous surge to its all-time high north of $ 4,000. A possible target price for this future rally could be around $ 3,700 to $ 3,800 before price takes a big hit.
In higher periods of time, the trader claimed that ETH’s price is currently showing some resistance on a channel established after the 2017 rally. At this point in time, ETH reached its all-time high of around USD 1,400.
Source: Trader Jackis via Twitter
After a long period of consolidation, ETH’s price is slowly moving back to the channel’s highs with a potential target price of $ 20,000 to $ 40,000. This coincides with the predictions of other experts, as ETH is migrating to its Proof-of-Stake (PoS) blockchain.
Along with the EIP-1559, the growth of the DeFi sector, and the NFT mania, Ethereum and its ecosystem appear to have many potential upward catalysts. The DeFi sector recently achieved a Total Value Locked (TVL) of $ 148 billion, according to the research company Messari.
DeFi’s total global value just reached $ 148 billion and is rapidly approaching new ATHs. Ethereum, Terra and Solana lead the way, with the latter two printing new ATHs in the past few days.
Source: Messari, Ryan Watkins via Twitter
Ethereum 2.0 the dominant global blockchain?
Once the migration to Ethereum 2.0 is complete, the ecosystem could benefit from new financial instruments and a new business model based on them. As analyst Natasha Che claimed, ETH could replace “risk-free” traditional assets such as US Treasuries in “any portfolio”.
With that in mind, the analyst compared the Ethereum economy to that of a country with a resilient economy, with the transaction fee mechanism acting as a tax collection tool and more claims coming in.
At the moment, crypto is playing with itself in the sandbox. The activities are deFi and NFT. But it is a matter of time before “real economy” things happen in the chain. Handle imports and exports, buy houses and cars, pay employees and contractors.
Unlike the US or any other country, this economic ecosystem is available to everyone on earth and offers more leeway to generate higher income. Owning ETH will therefore be similar to owning a “cut” in this enormous global value chain.
Do you remember why US Treasuries are considered risk-free assets? Because they are covered by tax revenues from the largest economy in the world. But since gas fees are “tax revenues” of the entire global economy, Ethereum can single-handedly beat US Treasuries in the risk-free game of assets.