Since the Merge in 2022, Ethereum has struggled to keep up with Bitcoin, failing to generate the bullish momentum that many analysts had anticipated.
Despite several network upgrades, their effect on ETH’s price has been minimal, according to a research note by Matrixport.
The Singapore-based blockchain firm stated that Ethereum’s upgrades are part of a long-term strategy rather than immediate market catalysts. They characterized these upgrades as incremental steps in the evolution of Ethereum rather than as significant game-changers for price action.
Wall Street’s fluctuating interest in spot Ethereum exchange-traded funds indicates that Ethereum is falling behind emerging trends, as many users are now favouring the issuance of meme coins on cheaper networks, posing a challenge to ETH’s dominance. However, a positive note is that ether issuance has recently surpassed that of TRON, despite TRON’s lower transaction fees, reflecting ongoing trust in Ethereum’s security and stability.
Market analysts have differing views on Ethereum’s future price. Analyst Jelle predicts ETH could hit $5,000 by March, citing a bullish pennant formation developing over four years, which often leads to significant price breakouts with strong buying momentum.
TradingView analyst Kartik identified a flag-and-pole pattern in Ethereum’s price action, indicating a potential breakout. He pointed out that ETH has been a downtrend from the $4,100 resistance level, with $2,800 as the next key support. Kartik suggested that Ethereum might experience an upward move through a breakout above the trendline or a rebound from the $2,800 support. He advised traders to wait for confirmation before taking action.
Notably, A report from Bybit and Block Scholes revealed that Bitcoin perpetual swap open interest remained stable during year-end expirations, defying expectations for increased volatility. Traders were cautious yet confident in their options without over-hedging. Although BTC’s open interest has not returned to December levels, the report indicates a steep implied volatility term structure with a 57% expectation for one week.
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