After unsuccessfully attempting to breach the early November resistance in the $1,675 area towards the end of last week, Ether (ETH), a native token of the Ethereum blockchain, is undergoing consolidation. After shedding nearly 5% in the past 24 hours, it continues to trade sideways in the $1550 area as traders keep an eye out for macro factors ahead, including US fourth quarter GDP growth data. on Fridays.
These data could affect the outlook for FED policy tightening this year, which could impact the cryptocurrency industry: The FED’s dovish stance due to slowing inflation and growth in the US has contributed to the recovery of the cryptocurrency market at the beginning of the year. In fact, despite its recent consolidation, Ethereum is still trading more than 35% higher this year, meaning the market’s second-largest cryptocurrency by market capitalization is on track for its best monthly performance since July 2022.
What is the future of ETH?
A favorable macro scenario, coupled with optimism that the upcoming Ethereum upgrade will allow for withdrawals, could support the cryptocurrency’s upward trajectory. Indeed, progress towards the “Shanghai” hard fork seems to be going smoothly: one of the Ethereum developers announced on Twitter that a new testnet for staking ETH withdrawals is being created.
On the other hand, if ETH supply conditions remain deflationary, this could be another factor conducive to further upside. ETH’s annual inflation rate fell into negative territory once again early last week for the first time since November, according to data from ultrasonic.money.
A break above the $1,675 resistance zone could open the door for a rapid advance to the next major resistance zone around $1,790 and then to the summer 2020 highs at $2,030.
Expert price predictions
According to algorithm-based cryptocurrency forecasting website Wallet Investor, Ethereum is expected to trade just above $700 annually, about 55% below current levels.
DigitalCoinPrice analysts are not so bearish. Their algorithm projects that Ethereum will end in 2023 at around $3,450, an impressive increase of more than 100% from current levels.
And according to a recent survey of 55 fintech experts finder.comEthereum is expected to finish 2025 at $5,150, before reaching $11,700 in 2030. The CEO and co-founder ofOsom Finance, Anton Altementhe explained that his optimism is largely due to the success of the merger that took place last year, turning ETH into both a deflationary and yield-promoting asset.
He added that pessimism about Fed tightening should ease in 2023, while concerns about ETH staking will soon fade thanks to the next Shanghai update expected later this quarter.
Martin Fröhlermanaging director of Morpho, also has a bullish view. Foehler believes that massive institutional demand for ETH can be expected in the coming years due to the positive characteristics of the cryptocurrency. These include ETH’s return of around 5% via staking, its green nature after abandoning proof-of-work for proof-of-stake, the fact that it is classified as a commodity, and the fact that it has a regulated futures contract on the CME to hedge against price volatility.
Is it too late to buy Ethereum?
If the bullish predictions above are correct, it is certainly not too late. ETH would have been better invested in June 2022, when it bottomed out at $800. But if you’re a long-term investor looking to hold Ethereum until it crosses $10,000, it doesn’t matter much whether you buy at $800 or at current levels.
Ethereum is still down about 65% from the highs reached at the end of 2021 in the $4,800. Buying while still 65% below recent highs has proven to be a profitable strategy thus far.
Alternatives to Ethereum
Presale tokens are currently among the most attractive assets on the market, thanks to their availability at very advantageous prices.
Metamasters Guild (MEMAG)
Investors interested in emerging play-to-earn (P2E) cryptocurrencies should closely monitor the Meta Masters Guild (MMG) project. Describing itself as the first web3 gaming guild on mobile, the ecosystem hopes to introduce high-quality blockchain-based games.
Meta Master Guild distinguishes itself from existing P2E platforms such as Axie Infinity, The Sandbox and Decentraland by offering fun games that offer community members many opportunities to earn money, including providing game resources, creating content and participating in events.
Players of the first mobile-focused Web3 gaming guild will earn a currency called Gems. These tokens are versatile as they can be exchanged for MEMAG, the platform’s native token, which can be staked for further rewards. They can also be used to purchase in-game NFTs or exchanged for other cryptocurrencies such as ETH.
Combat (FGHT)
Fight Out is a new crypto project hoping to redefine the fitness lifestyle through Web3. Fight Out is a Move-to-Earn (M2E) app with a chain of gyms that “gamify“the fitness lifestyle. Ecosystem users are rewarded for completing pre-determined workouts and challenges while earning badges within a vibrant community.
An incentive system will manage the ecosystem where users earn FGHT tokens by completing M2E tasks.
Unlike existing Move-to-Earn crypto ecosystems like STEPN, FightOut users will not need expensive NFTs. Instead, FightOut uses simple technology solutions with digital avatars to make it easier for the Web2 audience to access the metaverse.