Ethereum It has been trending lower over the past few days, struggling to hold above the $2,700 level. Having failed to overcome this key resistance, the price continues to fall, leaving investors wondering if further declines are in store. In this Ethereum price forecast In this article, we’ll take a closer look at what’s driving Ethereum’s recent performance and what could happen next.
How has the price of Ethereum changed recently?
Currently, Ethereum price is $2547.76, with a 24-hour trading volume of $26.99 billion, a market capitalization of $306.69 billion, and a market dominance of 13.10%. Over the past 24 hours, the price of Ethereum has fallen by 1.70%.
Ethereum’s all-time high was reached on November 10, 2021, when it traded at $4,867.17. The lowest price was recorded on October 21, 2015 and was only $0.42. Since its peak, the lowest point Ethereum has fallen to is $897.01, and its highest bounce since then was $4094.18. Currently, market sentiment around Ethereum is bearish, with the Fear and Greed Index sitting at 69, indicating “greed” sentiment among investors.
Ethereum has a circulating supply of 120.38 million ETH, with an annual supply inflation rate of 0.09%, meaning that another 111,486 ETH were created last year.
Why is the price of Ethereum falling?
The decline in Ethereum prices can be attributed to a combination of factors that have created uncertainty and dampened investor sentiment. On October 23, reports emerged that the Ethereum Foundation had sold another batch of ETH tokens, which usually signals caution to the market.
Such actions often cause concern among investors because they imply that insiders may believe the current price is high or that they are hedging against a potential future decline. The news adds to the ongoing struggles facing Ethereum, including the disappointing performance of several US spot ETFs that were expected to boost interest and demand for ETH but failed to have the expected impact on the market.
Another key factor contributing to the fall in Ethereum prices is the decline in its total locked value (TVL) across decentralized finance (DeFi) protocols. Since mid-June, Ethereum’s TVL has fallen by more than 2% over the past 30 days, trailing other top layer 1 protocols such as Solana, which saw its TVL increase by 22% over the same period.
The reduction in TVL indicates a decline in activity and capital inflows into the Ethereum network, signaling a potential loss of interest among developers and users in the DeFi ecosystem. This drop from a peak of $66 billion year-to-date to the current $48 billion highlights the challenges Ethereum faces in maintaining its dominance in the DeFi space.
Looking ahead, short-term Ethereum price movements may remain under pressure unless significant catalysts emerge, such as major technical updates or changes in market sentiment. However, Ethereum’s roadmap has ambitious goals that could change its trajectory in the long term.
Co-founder Vitalik Buterin recently confirmed Ethereum’s plans to reach 1,000 transactions per second during the “surge” phase of its development. If Ethereum can successfully implement these upgrades and improve scalability, it could restore investor confidence and renew demand. However, Ethereum may continue to face bearish sentiment in the short term, especially if broader market conditions remain uncertain and competitors like Solana continue to gain traction in the DeFi space.
Ethereum Price Prediction: How High Can Ethereum Price Go?
Ethereum’s potential for future price growth depends on a combination of positive and challenging factors. Ethereum’s price has risen 43% over the past year, reflecting its resilience and strong demand in the broader cryptocurrency market.
In addition, Ethereum benefits from high liquidity given its large market capitalization and strong presence in decentralized finance (DeFi) and smart contract platforms. The relatively low annual inflation rate of 0.09%, which means only a small number of new tokens are created, helps prevent significant dilution of existing assets, maintaining long-term price stability.
However, Ethereum underperformed compared to 59% of the top 100 crypto assets over the same period and was noticeably behind Bitcoin. This poor performance indicates that while Ethereum has seen steady growth, other assets have attracted more significant attention and capital, leading to stronger gains.
Additionally, Ethereum is currently trading below its 200-day simple moving average (SMA), a technical indicator that typically signals bearish sentiment in the market in the near future. Only 14 of the last 30 days have been green, suggesting that Ethereum has been struggling to maintain upward momentum lately.
Despite these obstacles, Ethereum’s roadmap offers significant growth potential over the long term. The ambitious goal of achieving 1,000 transactions per second as part of the Splash phase could significantly improve Ethereum’s scalability, attracting more users and developers to its platform.
If these updates are successfully implemented, Ethereum could regain its competitive edge, positioning it as the leading blockchain for DeFi, NFTs, and decentralized applications.
Looking at the price upside, if Ethereum is able to break through its current technical resistance, including the 200-day SMA, and if overall market sentiment turns bullish, Ethereum could see a significant move higher. A rise to an all-time high of $4,867.17 is possible in the short to medium term, especially if market conditions improve and Ethereum upgrades strengthen its functionality.
However, any sustainable rally will require a change in investor sentiment and outperformance relative to competitors such as Bitcoin. So, while Ethereum has the potential for significant growth, it will need to overcome current market challenges and prove the value of its upcoming technical advancements to unlock that growth.
