Ethereum is second only to Bitcoin in market capitalization, but leads the industry in smart contracts, NFTs, and protocols. The recent announcement of the Shanghai fork, EIP-4895, scheduled for March 2023, is expected to fuel its growth. Also, in the NFT arena, Ethereum is experiencing a positive rise, with significant high-value NFTs available with them. Recently, Ethereum’s total circulation supply hit its post-merger low of around 120.5 million tokens.
What is ETH doing?
Hitting its post-merger low, reaching a deflationary state due to frequent burning, caused the available tokens to shrink as the general rule dictates; the lower the number of a token, the better the price. Its scarcity increases; therefore, FOMO feeds the price. This declining supply could be related to a rise in Bitcoin prices (trading at $23,769.51) and rising stock prices. In general, merchants respond by buying higher-risk tokens available only on-chain.
Circulating supply is a fundamentally important variable that many traders and analysts look for when analyzing price. Some estimates hint that almost 1.9 million ETH will be burned annually, with only 622,000 ETH expected to be released.
ETH Price Analysis
At the time of writing, ETH is trading at $1,6995.15 with a jump of 6.18%; its value against Bitcoin rose 2.56% to 0.07009 BTC. Its market capitalization jumped 6.18% to $204 billion; at the same time, there was a massive increase in volume of 59.76% propelling it to $9.9 billion in the last 24 hours.
Proudly ranked #2 and sharing a market dominance of 18.75%, ETH expects to be ranked #1 soon. The current rate is 65.88%, below its all-time high of $4,891.70 reached on November 16, 2021, and is 396406.76%, above its all-time low of $0.4209 ETH reached on 27 November 2021. October 2015.
ETH chart analysis
The general sentiment of the crypto industry is towards the positive side, thus experiencing growth across the market. The same goes for ETH; A somewhat clearer uptrend is seen towards the supply zone, with R1 at $1,795.64 and R2 at $2,032.84.
Due to this bullish move, the price is expected to cross R1 and consolidate in the supply zone before breaking north. If this sentiment reverses, the price could fall towards the Ask zone, offering S1 at $1236.88 and S2 at $1083.28. Though the chances of a dip breaking the demand zone are pretty rare, citing current sentiment.