Ethereum’s price follows Bitcoin’s and the larger market’s upward trend. It is, however, nearing three critical resistance zones that must be broken in order to advance higher.
ETH price went up 8.90 percent to $3,236. The currency has gained 11.88 percent in the last week, bringing its market capitalization to $386,18.
Ethereum’s price, like that of many other high-cap cryptocurrencies, is considered to be in the Cloud. People should not feel at ease in the Cloud because it is a very unpredictable and indecisive environment. Price whirlpools and abrupt severe moves are common.
Amidst this notion, popular analyst Lark Davis is urging investors to stick with Ethereum (ETH).
ETH’s price should increase, Lark Davis told his Twitter followers, despite a 23 percent drop from its 30-day high, because the token’s supply on exchange platforms is diminishing.
“There are around 3 million less #ethereum on exchanges now compared to when the price was at an all-time high. Wow! This market is a ticking time bomb!”
The exchange reserve of an asset is the total quantity of tokens in all wallets on controlled exchange platforms.
Davis’s comments follow the activation of Ethereum’s London hard fork earlier this year, which included a deflationary mechanism that burns ETH dependent on the number of transactions handled by the network. This strategy has been used to burn almost $1 billion worth of ETH thus far.
According to Viewbase, approximately 170,000 Ethereum tokens have vanished from exchange platforms in the last seven days, totaling 1.17 million tokens burned in a 30-day period.
Ethereum to Replace Bitcoin
Sandeep Nailwal, Polygon’s co-founder and COO, recently spoke on Cointelegraph to discuss the future of the top smart contracts blockchain. Ethereum is the second most popular layer 1 blockchain, after only bitcoin. And, according to Nailwal, it’s only a matter of time before the blockchain becomes the dominant Layer 1 protocol. He attributes this to a variety of factors, including discrepancies in the two blockchains.
The expansion of the DeFi space, according to Nailwal, was a primary driving force behind this acquisition. This is because Ethereum was used for the bulk of decentralized finance transactions, making it the “ultimate settlement layer.”
Because of its popularity, ETH has become even more valuable as a blockchain, putting it in a position to overtake the most valuable cryptocurrency. The COO predicted that
“Sooner or later, ETH will outpace Bitcoin and become the global standard,”