Fundamentally, Ethereum has never looked in better shape, However, ETH price action has not reflected this,
It’s been 100 days since the Ethereum merge, and the network has become more environmentally sustainable and resilient.
Proof-of-Work mining was replaced by a Proof-of-Stake consensus model. This has resulted in reduction of network energy consumption by more than 99%.
On December 25, ETH developer “superfiz” commented on the narrative, saying “we just did the right thing.”
According to Beaconcha.in, there are currently 15.7 million ETH at stake, which is about 13% of the total supply. At today’s prices, its value has been estimated at around $19.2 billion.
Additionally, there are currently over 490,000 active validators on the Ethereum network. Bitcoin hash rate has decreased due to severe weather conditions in the United States and strain on the energy grid. This is no longer a problem in Ethereum.
Ethereum leads the NFT activity
Staking is not the only bullish fundamental for Ethereum. It is also the top NFT ecosystem in the world. According to Nansen, a total of $23.7 billion in NFTs will be mined and traded on Ethereum in 2022.
Furthermore, it is ahead of the second largest NFT ecosystem, Solana. Other alleged ‘Ethereum killers’ like Cardano and Polkadot don’t even come close to the NFT activity.
According to the Ultrasound.Money tracker, the issuance of Ethereum is currently close to zero. Supply is growing only 0.012% per year and has fallen slightly from its peak of 121.3K ETH.
The biggest gas guzzler at the moment is the CoinTools XEN batch minter, which has burned 164 ETH in the last 24 hours. XEN is a token that anyone can mint and has a pyramid-type token but it still seems to be popular.
Disappointing Price Prediction for ETH
Positive fundamentals for the network and ecosystem are not reflected in the price action. Ethereum is currently trading flat at $1,220 at the time of writing.
There was virtually no movement in price over the weekend as the asset remained range bound at the $1,200 level.
However, analysts are predicting more price pain for ETH. Additionally, technical indicators suggest that the support at the current levels may soon be broken.
In addition, bearish triangles also exist. This has prompted one analyst to predict a further decline in ETH price to $1,080.
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