In the last week, cryptocurrencies gained enormously and Bitcoin even recorded a new all-time high. In contrast, Ethereum has performed weaker so far and is still around 20% away from its all-time high. The Ethereum price forecast therefore sheds light on whether ETH is currently cheaply valued and represents an excellent investment option or whether the declining momentum suggests a correction before the rally continues. Read the Ethereum price forecast now to be optimally prepared for the trading week and price developments!
Ethereum development to date
During the past week, demand for memecoins increased, according to analysts at IntoTheBlock Ethereum blockchain network activity hits two-year high and fee income to $193 million. Such high levels were last seen in May of 2022.
Likewise, this also has Trading volume of the decentralized crypto exchange on Ethereum increased. This is noted in the Weekly comparison up 26.85% at $20.2 billion. However, higher transaction fees made Ethereum uneconomical for many purposes.
The high transaction volume in turn means that the number of ETH destroyed via burning also increases. Because Ethereum has been deflationary since the merge 542 days ago. In this context, there have already been 426,405.22 ETH destroyedwhich is 0.238% of the total supply.
A price driver for Ethereum was next to that high correlation with Bitcoin and its new all-time highs too Dencun upgradeas such developments have caused price increases in the past.
With the help of on March 13 introduced Proto-Danksharding and the Blops are supposed to Transaction fees for Layer 2 solutions can be reduced by ten to a hundred times.
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So Ethereum could still more interesting for users become, as many uneconomical transactions can be processed inexpensively. On the other hand, probably Due to the increasing outsourcing to layer 2s and the lower fee income, the burn rate and the rewards of the stakers are also falling.
Thus, Ethereum could a little less interesting for investors, at least with regard to these aspects become. Nevertheless, blockchain will continue to remain competitive as a leader in the DApp space so far due to network growth and other advantages. However, the staking return and the appreciation effect are likely to decrease as a result, comparable to a company that generates fewer profits.
Another important event is the potential approval of Ethereum spot ETFs from BlackRock, Fidelity and others, which can increase capital inflows. The next date for the The earliest possible admission is May 23rd and the current last date is August 8th.
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Ethereum price forecast and outlook for the coming week
Most recently, the labor market report from the USA was weak. Because that Unemployment rate was higher than forecast became. They are the same Wages rose less sharply.
Due to the weaker economy and labor market In turn, the chance of interest rate cuts increases. However, the number of employees increased more than expected.
The Fed will For now just wait and see, nevertheless the cryptocurrencies were able to gain again on Friday, although not by as much. Currently Ethereum is moving towards the key psychological resistance at $4,000.
Compared to Bitcoin and other cryptocurrencies, ETH is still 20% away from its all-time high of $4,868.53. The next step is to overcome the Fibonacci retracement of $4,010.85. The path would then be clear to USD 4,382.31.
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At the Tuesday will be the consumer price indices from the USA published. This in turn allows conclusions to be drawn about inflation developments and possible interest rate cuts. Until then the financial markets could act a little more cautiously for the time being.
If inflation were to fall, the trend would be bullish, with loose financial conditions, banking programs and rising stock markets dampening hopes of interest rate cuts.
Further information on inflation developments can be found here Producer price index on Thursday, which is a kind of leading indicator for inflation. In addition there are the Inflation expectations from the University of Michigan on Friday.
At the Retail sales will also be announced on Thursday. They give an impression of the state of the US economy, as a large part of the US GDP can be attributed to private consumption. If they weaken, the likelihood of interest rate cuts increases.
In the medium term, Ethereum spot ETFs are expected to be approved this year as well as driving demand and price, being the next Price target for this year at $7,325.41 lies. Rates from $11,309.25 to $15,293.09 are possible by 2025which is 2.9x to 3.9x from current levels.
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This coin could rise more than Ethereum
Ethereum offers a particularly attractive investment option compared to many stocks. However, there are other cryptocurrencies that have much greater potential. Because ETH already has a very high market capitalization of USD 467.2 billion, while crypto pre-sales are still particularly cheap at a few million.
This is a particularly attractive option AI online security ecosystem by Scotty the AI. Investors are currently rushing into pre-sales, which are continually increasing the pace of sales. While in the first 12 days it was only around half a million USD per day, it is now even more than 1 million USD.
Because according to rumors it is a project that could have been developed by the founding members of Ethereum. There is lots of evidencewhich indicate how the ERC-20 token, the Ethereum partnership, the immediate release after Vitalik’s tweet about AI security reviewsthe high media presence, the extreme demand in presales and the low competition.
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To date, there are only 15 cryptocurrencies in the Web3 security space, despite it being referred to as the evolution of the Internet. The competition becomes even smaller due to the focus on the AI niche. This would allow Scotty the AI to stand out much more easily and achieve a decisive developmental advantage.
While ChatGPT and others According to studies, AIs miss 1⁄3 of errors due to the lack of specialization and create new errors, Scotty the AI is intended to effectively address these shortcomings. That’s what it will be for AI is continuously trained with the most comprehensive data sets in real time. Together with machine learning, they should Suspicious patterns are effectively detected and damage is prevented become.
An important tool from Scotty the AI is the AI chat. With this, users can not only check codes, but also receive personalized online security advice at any time. Added Scotty Swap for the safest exchange of crypto assetswhat it is about preferred choice of institutional investors, whales and crypto exchanges as well as generating huge fee income.
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