Ethereum prices are back in the doldrums after slumping more than 11% over the past week. The network is also facing inflationary pressures as the ETH supply returns to pre-merge levels due to low demand.
Nevertheless, the Ether bulls remained upbeat and confident that this year will see a new all-time high for the asset.
In a post on X on Jan. 12, crypto trader ‘Mister Crypto’ said he was accumulating because “Ethereum is about to send hard.” The analyst posted a chart from the previous year with uncannily similar patterns which preceded a large move upwards.
Meanwhile, popular crypto commentator ‘CRYPTO₿IRB’ posted a similar chart asking their 698,000 X followers, “Would you be surprised if ETH hit $20,000 this cycle?” which got mixed reactions.
On Jan. 12, YouTuber ‘Crypto Rover’ said, “This breakout will teleport Ethereum to $8,000,” while analyst ‘Crypto Caesar’ said it was time for the ETH/BTC ratio to bounce, renewing calls for altseason.
The ratio, which measures the price of ETH in terms of BTC, is at a three-year low of 0.034, according to Tradingview.
Another concern is the network returning to an inflationary supply, which has been the case since April 2024. Over the past nine months, the Ethereum supply has increased by 0.35% and is currently 120.4 million, according to Ultrasound.Money.
The narrative at the time of the Merge in late 2022 was that Ethereum fee burning through EIP-1559 would outpace production, and that was the case until April 2024, when supply had shrunk by almost 0.4%.
Ethereum has remained flat over the weekend but dropped alongside the rest of the market early on Monday to under $3,200.
The asset has tanked almost 15% since its 2024 high of just over $3,700 around a week ago.
ETH has been consolidating at current levels for the past five days and needs to hold them to prevent a larger price collapse below $3,000.
The post Ethereum Bulls Eye $20K Despite Recent Slump and Supply Inflation appeared first on CryptoPotato.
Nevertheless, the Ether bulls remained upbeat and confident that this year will see a new all-time high for the asset.
In a post on X on Jan. 12, crypto trader ‘Mister Crypto’ said he was accumulating because “Ethereum is about to send hard.” The analyst posted a chart from the previous year with uncannily similar patterns which preceded a large move upwards.
Deflationary Supply to End
Meanwhile, popular crypto commentator ‘CRYPTO₿IRB’ posted a similar chart asking their 698,000 X followers, “Would you be surprised if ETH hit $20,000 this cycle?” which got mixed reactions.
On Jan. 12, YouTuber ‘Crypto Rover’ said, “This breakout will teleport Ethereum to $8,000,” while analyst ‘Crypto Caesar’ said it was time for the ETH/BTC ratio to bounce, renewing calls for altseason.
The ratio, which measures the price of ETH in terms of BTC, is at a three-year low of 0.034, according to Tradingview.
Another concern is the network returning to an inflationary supply, which has been the case since April 2024. Over the past nine months, the Ethereum supply has increased by 0.35% and is currently 120.4 million, according to Ultrasound.Money.
The narrative at the time of the Merge in late 2022 was that Ethereum fee burning through EIP-1559 would outpace production, and that was the case until April 2024, when supply had shrunk by almost 0.4%.
ETH Price Outlook
Ethereum has remained flat over the weekend but dropped alongside the rest of the market early on Monday to under $3,200.
The asset has tanked almost 15% since its 2024 high of just over $3,700 around a week ago.
ETH has been consolidating at current levels for the past five days and needs to hold them to prevent a larger price collapse below $3,000.
The post Ethereum Bulls Eye $20K Despite Recent Slump and Supply Inflation appeared first on CryptoPotato.
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