Ethereum is ready to go higher, the price of ETH broke a resistance zone and is set to reach the $2300 level
With a total market cap of $246 billion, Ethereum is ranked 2nd in terms of total capitalization. Out of the $2.07T global crypto market cap, only Bitcoin has more value attached to its market, with a market cap of $1.1T.
Compared to Bitcoin, Ethereum continues to be undervalued.
For now, Ethereum has consolidated back above previous all-time highs. If the price level can stick above the critical support of $2044, we are headed for $2300. However, if we do break the 50 EMA, there is a good chance to revisit the lower 2000’s before going back up.
The supply of ETH is continuously decreasing, and ETH 2.0 is looming around
More specifically, a 20-month low has been recorded as of last week. This low represents over 14.25 million ETH on exchanges, representing over 10% of the circulating supply on exchanges. Some speculators are expecting the value of ETH to go to at least $5,000 in this bull run.
The introduction of ETH 2.0 in the coming months not only intends to scale the network to alleviate congestion but also to introduce technical changes (EIP-1559) that realign the economic incentives of the Ethereum network. Instead of miners validating the transactions, it will be up to ETH holders to secure the network.
While Bitcoin could be considered a store of value like gold. Meanwhile, ETH is more like oil, it fuels a protocol on top of which applications can be built.