As of right now, the price of Ethereum is $1,552, down 5% from yesterday and 6% from one week ago. The fall coincides with a market-wide selloff brought on by Kraken’s agreement to stop providing any staking services to US-based clients and its payment of a $30 million settlement to the SEC.
Despite this setback for the market, Ethereum is still a promising investment due to the altcoin’s current daily trading volume of over $10 billion. There are several grounds to believe that ETH will once again increase in value, including Visa’s recent announcement that it is testing stablecoin payments on the Ethereum network.
Can $ETH soon reach $2,000 as $10 billion in trading volume enters the market?
ETH is currently poised for additional losses based only on signs. Its price should be poised for decline because its 30-day moving average (red) looks to have peaked with respect to its 200-day moving average (blue).
Furthermore, the relative strength index (purple) for ETH has fallen to slightly below 50 and may keep declining. As a result, it appears that the cryptocurrency may experience further losses this weekend.
A support level of about $1,600 has been providing protection for ETH up until yesterday. However, it appears that the bad occurrence that causes an asset to breach such a threshold was presented by yesterday’s news.
And considering how much ETH, which is currently a proof-of-stake cryptocurrency, depends on staking, it may fall even more. It’s interesting to note that, despite the market’s overall decline, ETH has fallen more in the last day than Bitcoin, which is down 3.5%.
Despite all of this negative, proponents of cryptocurrencies have said that staking is still legal in the US despite the SEC’s allegations against Kraken and Kraken’s settlement.
For instance, Coinbase has previously reaffirmed its commitment to continuing to offer its own staking services and stated that it is willing to take the US securities regulator to court over this matter.
This gives the US plenty of reason to continue staking, while the rest of the world, clearly, is untouched by the SEC’s most recent power grab.
And when it comes to Ethereum, its solid foundations provide a lot of grounds for suspicion that it will climb again soon. For instance, the payment industry major Visa recently announced that it is testing USDC stablecoin payments on the Ethereum network.
This is extremely positive for Ethereum, and Visa’s increasing participation in the platform might help it solidify its leadership position within the cryptocurrency ecosystem. In fact, several analysts, most notably Bloomberg’s Mike McGlone, predict that ETH will exceed Bitcoin this year.
This optimism is justified for a number of reasons. In addition to making Ethereum more scalable, the Merge and subsequent improvements (such as EIP 1559) have also given ETH a propensity to deflate during moments of high activity.
With all of this in mind, there is still a very good potential that ETH will soon start to trouble additional levels in addition to recovering back to $1,600. This includes $2,000, a feasible goal for this year. If the market is able to rebound generally, free of bad news, additional levels could also be reachable.
Buy Ethereum now
Is This the Right Moment to Buy Ethereum?
Considering the effects of Kraken’s settlement with the SEC yesterday, it might not be a good idea to acquire ETH right now, despite its solid fundamentals and long-term potential. However, there are a few other cryptocurrencies with significant potential that do promise profits over the long and near term.
The top 15 cryptocurrencies for 2023 have been identified below, according to research done by the CryptoNews Industry Talk team.
Be sure to check back frequently for fresh additions as the list is updated every week to include new cryptocurrencies and ICO projects.