Leading the crypto market for the past month, Ethereum still displays conviction as it moves back to previous highs. The second cryptocurrency by market cap has slow down in the past day, but still seems bullish to records more gains in the short term.
At the time of writing, ETH trades at $3,157 with a 2% loss in the daily chart. After the EIP-1559 was introduced with the Hard Fork London, Ethereum took a stronger momentum to the upside.
Pseudonym trader Jackis has been keeping a close eye on ETH’s price, charting its potential short- and long-term scenarios. The former could see some ranging and consolidation at current levels, as seen below.
This fractal predicts a potential move to the upside for Ethereum, as the cryptocurrency approaches the end of August. At that time, ETH holders could see some more gains with some pullbacks along the way.
Jackis drew this prediction by comparing Ethereum’s previous climb to its all-time high north of $4,000. A possible price target for this future rally could sit around $3,700 to $3,800, before the price experience a major retrace.
In high timeframes, the trader claimed that ETH’s price is currently seen some resistance on a channel established after the 2017 rally. At this time, ETH reached its previous all-time high at around $1,400.
After a long period of consolidation, ETH’s price has been slowly moving back to the highs of the channel with a potential price target of $20,000 to $40,000. This coincides with predictions made by other experts, as ETH migrates to its Proof-of-Stake (PoS) blockchain.
Along with the EIP-1559, the growth in the DeFi Sector, and the NFT mania, Ethereum and its ecosystem seem to have a lot of potential bullish catalyzers. Recently, the DeFi sector reached $148 billion in total value locked (TVL), as reported by research firm Messari.
Global total value locked in DeFi just reached $148 billion and is rapidly approaching new ATHs. Ethereum, Terra, and Solana are leading the way, with the latter two printing new ATHs in recent days.
Ethereum 2.0 The Dominant Global Blockchain?
Once the migration to the Ethereum 2.0 is completed, the ecosystem could benefit from new financial tools and a new business model built around it. As analyst Natasha Che claimed, ETH could replace “risk-free” traditional investment assets such as U.S. treasuries in “any portfolio”.
In that sense, the analyst compared the Ethereum economy with that of a country with a robust economy with the transaction fee mechanism acting as a tax collection tool, and with more applications incoming.
Right now crypto is playing in the sandbox with itself. The activities are deFi and NFT. But it’s a matter of time before “real economy” stuff starts happening on chain. Settling imports and exports, buying houses and cars, paying employees and contractors.
Unlike the U.S. or any other country, this economic ecosystem is available to everyone on earth and has more room to record a higher level of revenue. Thus, owning ETH will be similar to owning a “cut” of that enormous global value creation chain.
Remember why US treasuries are considered risk-free assets? Cuz they are backed by tax incomes from the biggest economy in the world. But since gas fees are “tax incomes” from the entire world economy, ethereum can single-handedly beat US treasuries at the risk-free asset game.
