The price of ether (ETH) recovered the support of $ 2,000 on March 24, but remains 18% lower than $ 2,500 three weeks ago. The data show that Ether has underperformed the Altcoin market of 14% in the last 30 days, which has led merchants to wonder if the Altcoin can resume optimistic momentum and what factors could lead to a trend reversal.
Ether / USD (left) compared to the Total Altcoin capitalization, USD (right). Source: tradingView / Cointelegraph
Ether seems to be well positioned to attract institutional demand and considerably reduce the FUD which has limited its increase in increase. Critics have long argued that Ethereum ecosystem is lagging behind competitors in the global user experience and always offers a limited scalability of the base layer, which has had a negative impact on network costs and the efficiency of transactions.
Does the upgrade of Ethereum Pectra have an impact on the price of the ETH?
Many challenges of the Ethereum network should be met at the next upgrade of the Pectra network, scheduled for the end of April or early June. Among the proposed changes is a doubling of the data that can be included in each block, which should help reduce costs for rollers and confidentiality -oriented mechanisms. In addition, the cost of call data will increase, encouraging developers to adopt Blobs – a more effective method for data storage.
Another notable improvement in upcoming upgrade is the introduction of intelligent accounts, which allow wallets to operate as smart contracts during transactions. This allows the sponsorship of gas costs, busy authentication and lots transactions. In addition, several other improvements focus on optimizing deposits and ignition withdrawals, offering greater flexibility and by extending block history for intelligent contracts that are based on past data.
Arthur Hayes, co-founder of Bitmex, set a price target of $ 5,000 for ETH on March 25, declaring that he should considerably surpass competitor Solana (soil).
Source: Cryptohayes
Whatever the justification for the forecasting of Arthur prices, the ETH option traders do not share the same bullish feeling. The call option (Buy) of September 26 with an exercise price of $ 5,000 costs only $ 35.40, which involves extremely low chances. However, Ethereum remains the undisputed leader in intelligent contract deposits and is the only Altcoin with a funding for cash in cash in the United States, currently holding $ 8.9 billion in management.
Ethereum TVL growth and reduction in ETH supply on exchanges
The Ethereum network has a total locked value (TVL) of $ 52.5 billion, considerably exceeding $ 7 billion in Solana. Most importantly, deposits on the Ethereum network have increased by 10% in the last 30 days, reaching 25.4 million ETH, while Solana experienced an 8% drop in the same period. The notable protruding facts on Ethereum include Sky (formerly Maker), which experienced a 17% increase in deposits, and Ethena, of which TVL jumped 38% in 30 days.
Ether balance on exchanges, eth. Source: Glassnode
The ether offer on exchanges amounted to 16.9 million ETH on March 25, barely 3.5% above its lower 16.32 million ETH, according to Glassnod data. This trend suggests that investors are withdrawing from exchanges, reporting a long -term commitment in capital. Similarly, the flows in the ETHERs of the Spot ether remained relatively silent on March 24 and 25, unlike $ 316 million in net outputs accumulated since March 10.
In relation: Ethereum developers are preparing the Pectra’s final test before the launch of Mainnet
Finally, the Ethereum network is gaining momentum in the real asset industry (RWA), especially after the Blackrock construction fund exceeded $ 1.5 billion in capitalization. The Ethereum ecosystem, including its scalability solutions in layer 2, represents more than 80% of this market, according to Rwa.xyz data, stressing Ethereum’s domination in decentralized financial space (DEFI).
The reduction in Ether prices below $ 1,900 on March 10 probably reflected too lowered expectations. However, the tide seems to have been transformed while the Ethereum network has demonstrated resilience, and the traders continued to withdraw from exchanges, preparing the land against a potential rally around $ 2,500.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
